Competitive distortions, carbon emissions efficiencies, or the green ultimatum?

Discusses whether the US air transport industry will be obliged to reduce carbon emissions if the liberalisation of transatlantic air transport is to continue under the European Union-United States Open Skies Air Transport Agreement 2007. Considers the EU proposal to require airlines which fly to or from Europe to join the EU emissions trading scheme or a comparable national scheme under Directive 2003/87 art.25. Compares the arguments for environmental taxes or emissions trading schemes, and examines the feasibility of including aviation in a US scheme.