{"id":{"repo_id":"helsinki","oai_identifier":"oai:helda.helsinki.fi:10138/594728"},"canonical_url":"https://search.dev.ndltd.org/etd/helsinki/oai:helda.helsinki.fi:10138/594728","repository":{"repo_id":"helsinki","name":"University of Helsinki","base_url":"https://helda.helsinki.fi/server/oai/request"},"display":{"title":"Grounded by the prices : Internal carbon pricing as a means to reduce corporate air travel","abstract":"Many large companies use mechanism called internal carbon pricing (ICP) as a means to voluntarily reduce their emissions, when there is no external carbon pricing by the regulator, or such price is deemed insufficient to deliver the level of emission reductions a company wants to achieve. With ICP companies can include the negative environmental impact of GHG emissions into their financial decision-making. This helps them to choose low-emission options when they are more expensive than the default option. This thesis explores the efficacy of ICP model in reducing GHG emissions from corporate business travel by incentivizing land-based travel by train and ferry or flying. The study is based on real-world price data for routes from Helsinki to Oulu, Stockholm and Frankfurt. The ICP level required for a travel method change is then estimated using these prices and emission estimates different travel options. Additional costs such as the per diem allowance and lost work time due to longer travel times are included as well. The results show that the commonly proposed methods for setting an ICP, such as using carbon credits or social cost of carbon as a reference value, are largely inadequate to lead travel method changes. Even an exceptionally high carbon price of 1,000 euros leads to travel method change only on one case in ten, and even when additional costs are excluded the share of travel method changes is only on in three. Based on the results, it is unlikely that ICP model can be effective in reducing corporate travel emissions on routes from Helsinki. This is mainly due to the fact that land-based travel is quite expensive and slow when compared to air travel.","abstract_html":"Many large companies use mechanism called internal carbon pricing (ICP) as a means to voluntarily reduce their emissions, when there is no external carbon pricing by the regulator, or such price is deemed insufficient to deliver the level of emission reductions a company wants to achieve. With ICP companies can include the negative environmental impact of GHG emissions into their financial decision-making. This helps them to choose low-emission options when they are more expensive than the default option. This thesis explores the efficacy of ICP model in reducing GHG emissions from corporate business travel by incentivizing land-based travel by train and ferry or flying. The study is based on real-world price data for routes from Helsinki to Oulu, Stockholm and Frankfurt. The ICP level required for a travel method change is then estimated using these prices and emission estimates different travel options. Additional costs such as the per diem allowance and lost work time due to longer travel times are included as well. The results show that the commonly proposed methods for setting an ICP, such as using carbon credits or social cost of carbon as a reference value, are largely inadequate to lead travel method changes. Even an exceptionally high carbon price of 1,000 euros leads to travel method change only on one case in ten, and even when additional costs are excluded the share of travel method changes is only on in three. Based on the results, it is unlikely that ICP model can be effective in reducing corporate travel emissions on routes from Helsinki. This is mainly due to the fact that land-based travel is quite expensive and slow when compared to air travel.","abstract_has_math":false,"creators":["Leipola, Lasse"],"institution":"Helsingin yliopisto","degree_name":null,"degree_level":null,"degree_discipline":null,"degree_department":null,"school":null,"contributors":[],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2025,"date_issued":"2025-04-04","date_published":"2025-04-04","updated_at":"2026-07-27T19:55:53Z","subjects":["air travel","internal carbon pricing","business travel","corporate emissions"],"languages":["eng"],"rights":["CC BY-NC-ND 4.0"],"rights_urls":[],"identifier_entries":[]},"links":{"outbound_url":"http://hdl.handle.net/10138/594728","outbound_label":"Handle","outbound_source":"dc:identifier.uri"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:creator","label":"Author","values":["Leipola, Lasse"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date.accessioned","label":"Dc Date Accessioned","values":["2025-04-04T11:55:18Z"]},{"key":"dc:date.available","label":"Dc Date Available","values":["2025-04-04T11:55:18Z"]},{"key":"dc:date.issued","label":"Date","values":["2025-04-04"]},{"key":"dc:publisher","label":"Institution","values":["Helsingin yliopisto","University of Helsinki","Helsingfors universitet"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["air travel","internal carbon pricing","business travel","corporate emissions"]}]},{"id":"language_rights","label":"Language and Rights","entries":[{"key":"dc:language.iso","label":"Language (ISO)","values":["eng"]},{"key":"dc:rights","label":"Dc Rights","values":["CC BY-NC-ND 4.0"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier.uri","label":"Identifier URI","values":["http://hdl.handle.net/10138/594728"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description.abstract","label":"Abstract","values":["Many large companies use mechanism called internal carbon pricing (ICP) as a means to voluntarily reduce their emissions, when there is no external carbon pricing by the regulator, or such price is deemed insufficient to deliver the level of emission reductions a company wants to achieve. With ICP companies can include the negative environmental impact of GHG emissions into their financial decision-making. This helps them to choose low-emission options when they are more expensive than the default option. This thesis explores the efficacy of ICP model in reducing GHG emissions from corporate business travel by incentivizing land-based travel by train and ferry or flying. The study is based on real-world price data for routes from Helsinki to Oulu, Stockholm and Frankfurt. The ICP level required for a travel method change is then estimated using these prices and emission estimates different travel options. Additional costs such as the per diem allowance and lost work time due to longer travel times are included as well. The results show that the commonly proposed methods for setting an ICP, such as using carbon credits or social cost of carbon as a reference value, are largely inadequate to lead travel method changes. Even an exceptionally high carbon price of 1,000 euros leads to travel method change only on one case in ten, and even when additional costs are excluded the share of travel method changes is only on in three. Based on the results, it is unlikely that ICP model can be effective in reducing corporate travel emissions on routes from Helsinki. This is mainly due to the fact that land-based travel is quite expensive and slow when compared to air travel.","Monet suuret yritykset käyttävät sisäistä päästöhinnoittelua vapaaehtoisena keinona edistää päästövähennyksiä tilanteissa, joissa muuta päästöhinnoittelua ei ole tai se arvioidaan riittämättömäksi päästövähennysten saavuttamisen näkökulmasta. Käyttämällä sisäistä päästöhinnoittelua yritykset voivat sisäistää kasvihuonekaasupäästöjen negatiivisen ympäristövaikutuksen taloudelliseen päätöksentekoon. Tämä auttaa yrityksiä tekemään päästöjä vähentäviä ratkaisuja, vaikka ne olisivat muita vaihtoehtoja kalliimpia. Tämä tutkielma arvioi sisäisen päästöhinnoittelun tehoa keinona kannustaa matkustamista maata pitkin ja siten vähentää lentämistä ja siitä aiheutuvia päästöjä. Tutkielma hyödyntää todellisia hinta tietoja reiteillä Helsingistä Ouluun, Tukholmaan ja Frankfurtiin. Näiden hintatietojen ja eri matkustusmuotojen päästöjä koskevien arvioiden perusteella lasketaan, millaiset sisäisen päästöhinnoittelun hintatasot johtavat matkustusmuodon muutokseen. Myös pidempään matka-aikaan liittyvät kustannukset kuten lisäiset päivärahat tai menetetty työaika huomioidaan. Tulokset osoittavat, että yleisesti esitetyt menetelmät sisäisessä päästöhinnoittelussa käytettävän hinnan asettamiseen, kuten ilmastoyksiköiden hinnan tai hiilen sosiaalinen hinnan käyttäminen viitetasona, ovat pääsääntöisesti riittämättömiä johtamaan matkustusmuodon muutokseen. Jopa erityisen korkeana pidettävä 1 000 euron päästöhinta johtaa matkustustavan muutokseen vain joka kymmenennellä matkalla. Vaikka välilliset kustannukset jätetään huomiotta, matkustusmuodon muutokset jäävät noin kolmannekseen matkoista. Tulosten perusteella on siis epätodennäköistä, että sisäinen päästöhinnoittelu voisi olla tehokas päästövähennyskeino Helsingistä matkustettaessa. Tämä johtuu erityisesti siitä, että maata pitkin matkustaminen on lentämiseen verrattuna melko kallista ja hidasta."]},{"key":"dc:title","label":"Title","values":["Grounded by the prices : Internal carbon pricing as a means to reduce corporate air travel"]}]}],"canonical_facts":{"dc:creator":["Leipola, Lasse"],"dc:date.accessioned":["2025-04-04T11:55:18Z"],"dc:date.available":["2025-04-04T11:55:18Z"],"dc:date.issued":["2025-04-04"],"dc:description.abstract":["Many large companies use mechanism called internal carbon pricing (ICP) as a means to voluntarily reduce their emissions, when there is no external carbon pricing by the regulator, or such price is deemed insufficient to deliver the level of emission reductions a company wants to achieve. With ICP companies can include the negative environmental impact of GHG emissions into their financial decision-making. This helps them to choose low-emission options when they are more expensive than the default option. This thesis explores the efficacy of ICP model in reducing GHG emissions from corporate business travel by incentivizing land-based travel by train and ferry or flying. The study is based on real-world price data for routes from Helsinki to Oulu, Stockholm and Frankfurt. The ICP level required for a travel method change is then estimated using these prices and emission estimates different travel options. Additional costs such as the per diem allowance and lost work time due to longer travel times are included as well. The results show that the commonly proposed methods for setting an ICP, such as using carbon credits or social cost of carbon as a reference value, are largely inadequate to lead travel method changes. Even an exceptionally high carbon price of 1,000 euros leads to travel method change only on one case in ten, and even when additional costs are excluded the share of travel method changes is only on in three. Based on the results, it is unlikely that ICP model can be effective in reducing corporate travel emissions on routes from Helsinki. This is mainly due to the fact that land-based travel is quite expensive and slow when compared to air travel.","Monet suuret yritykset käyttävät sisäistä päästöhinnoittelua vapaaehtoisena keinona edistää päästövähennyksiä tilanteissa, joissa muuta päästöhinnoittelua ei ole tai se arvioidaan riittämättömäksi päästövähennysten saavuttamisen näkökulmasta. Käyttämällä sisäistä päästöhinnoittelua yritykset voivat sisäistää kasvihuonekaasupäästöjen negatiivisen ympäristövaikutuksen taloudelliseen päätöksentekoon. Tämä auttaa yrityksiä tekemään päästöjä vähentäviä ratkaisuja, vaikka ne olisivat muita vaihtoehtoja kalliimpia. Tämä tutkielma arvioi sisäisen päästöhinnoittelun tehoa keinona kannustaa matkustamista maata pitkin ja siten vähentää lentämistä ja siitä aiheutuvia päästöjä. Tutkielma hyödyntää todellisia hinta tietoja reiteillä Helsingistä Ouluun, Tukholmaan ja Frankfurtiin. Näiden hintatietojen ja eri matkustusmuotojen päästöjä koskevien arvioiden perusteella lasketaan, millaiset sisäisen päästöhinnoittelun hintatasot johtavat matkustusmuodon muutokseen. Myös pidempään matka-aikaan liittyvät kustannukset kuten lisäiset päivärahat tai menetetty työaika huomioidaan. Tulokset osoittavat, että yleisesti esitetyt menetelmät sisäisessä päästöhinnoittelussa käytettävän hinnan asettamiseen, kuten ilmastoyksiköiden hinnan tai hiilen sosiaalinen hinnan käyttäminen viitetasona, ovat pääsääntöisesti riittämättömiä johtamaan matkustusmuodon muutokseen. Jopa erityisen korkeana pidettävä 1 000 euron päästöhinta johtaa matkustustavan muutokseen vain joka kymmenennellä matkalla. Vaikka välilliset kustannukset jätetään huomiotta, matkustusmuodon muutokset jäävät noin kolmannekseen matkoista. Tulosten perusteella on siis epätodennäköistä, että sisäinen päästöhinnoittelu voisi olla tehokas päästövähennyskeino Helsingistä matkustettaessa. Tämä johtuu erityisesti siitä, että maata pitkin matkustaminen on lentämiseen verrattuna melko kallista ja hidasta."],"dc:identifier.uri":["http://hdl.handle.net/10138/594728"],"dc:language.iso":["eng"],"dc:publisher":["Helsingin yliopisto","University of Helsinki","Helsingfors universitet"],"dc:rights":["CC BY-NC-ND 4.0"],"dc:subject":["air travel","internal carbon pricing","business travel","corporate emissions"],"dc:title":["Grounded by the prices : Internal carbon pricing as a means to reduce corporate air travel"]},"updated_at":"2026-07-27T19:55:53Z"}