This work aims at analysing the impacts of an aviation tax in Italy and at proposing a general methodology to manage the
complex effects of introducing environmental taxes. After a review
of the literature and the analysis of the possible structures of the
tax, its effects, at various levels, are calculated under a partialequilibrium
model. These are then introduced in an Input-Output
model to evaluate the impacts on the other sectors of the economy.
Finally, different revenue-recycling options are discussed. We
propose as an instrument of comparison the Green Taxation Matrix
(GTM) that can act as a guide for policy-makers.
Classification: D57, H23, Q52, Q58]
Keywords: market-based environmental policy; carbon taxes;
aviation sector; double dividend.