Analysis on the strategies of European Union's airline carbon tax with Stackelberg game models.

This paper is the first attempt to use the non-cooperation game theory to study the strategies of airline carbon tax from EU. Based on inducing four scenarios, non-resistance, refusal of payment, retaliatory duties and creditable threat, Stackelberg game models are developed to find the optimal strategies of countries. The results show that the strategy of refusal of payment, which China is taking step, is superior to the retaliatory duties. The main contribution of this paper is to study a new important international issue, airline carbon tax, summarize four coping strategies and analyze this issue by establishing Stackelberg game models for the first time. [ABSTRACT FROM AUTHOR]