Economic factors affecting the registration of lower CO2 emitting aircraft in Europe |
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| Institution: | 1. Department of Management, Economics and Quantitative Methods, University of Bergamo, Italy;2. School of Policy, Government and International Affairs, George Mason University, USA;3. Department of Management, Information, and Production Engineering, University of Bergamo, Italy;1. Centre for Isotope Research (CIO), Energy and Sustainability Research Institute Groningen (ESRIG), University of Groningen, Nijenborgh 4, 9747 AG Groningen, The Netherlands;2. Max-Planck-Institute for Biogeochemistry, Hans-Knoell-Straße 10, 07745 Jena, Germany;3. A.N. Severtsov Institute of Ecology and Evolution, Russian Academy of Sciences, Leninsky pr. 33, Moscow 119071, Russia;4. Laboratoire des Sciences du Climat et de l''Environnement (LSCE/IPSL), CEA-CNRS-UVSQ, 91191 Gif sur Yvette, France;1. Faculty of Management and Economics, Dalian University of Technology, No. 2 Linggong Road, Dalian City, 116024, China;2. Transportation Management College, Dalian Maritime University, No. 1 Linghai Road, Dalian City, 116026, China;1. College of Economics and Management, Huaiyin Normal University, 71 Jiaotong Avenue, Huaian 223001, China;2. College of Economics and Management & Research Centre for Soft Energy Science, Nanjing University of Aeronautics and Astronautics, 29 Jiangjun Avenue, Nanjing 211106, China |
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| Abstract: | We examine the various forces influencing the development and uptake of environmentally beneficial technical changes, focusing on airline technology. Within this context, we consider not only the nature of competition within the final market in which aircraft, an intermediate product, are sold, but also that of the product market itself, the commercial airline industry. The reasons for the gradual reduction in CO2 per seat per aircraft movement in aircraft design are examined in terms of the real costs of aviation fuel, changes in the nature of the supply industry, the movement towards carbon cap-trade policies, and endogenous technical progress in the technology of the industry. The latter being taken as an empirical proxy for the role market forms play in influencing the fuel efficiency of the types of aircraft used. The results support the existence of these latter forces on the demand for aircraft types, allowing for other influences that affect aircraft technology. |
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| Keywords: | Technology transfer Air transportation Environment Aviation fuel costs Climate change |
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