An environmental policy to raise the price of travel
(e.g. a national aviation tax) on a national or supra-
national basis will be ineffective if the price elasticity
of outbound travel is low, as found. A price inelastic
response at the national or supra-national level
means that the impact in terms of reducing demand
will be proportionately less than the increase in price.
The greater price sensitivity of inbound overseas
residents will result in a diversion to other destinations,
a “leakage of carbon”, and thus a reduction in
environmental effectiveness.