Analyzing the EU ETS, Challenges and Opportunities for Reducing Greenhouse Gas Emissions from the Aviation Industry in Europe

Berkay Afşar, Hasan Berk Bilgiç, Melih Emen, Sinan Zarifoğlu and Sevil Acar
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Berkay Afşar: Department of Tourism Administration, Boğaziçi University, 34342 Istanbul, Turkey
Hasan Berk Bilgiç: Department of Tourism Administration, Boğaziçi University, 34342 Istanbul, Turkey
Melih Emen: Department of Tourism Administration, Boğaziçi University, 34342 Istanbul, Turkey
Sinan Zarifoğlu: Department of Tourism Administration, Boğaziçi University, 34342 Istanbul, Turkey

Sustainability, 2023, vol. 15, issue 24, 1-17

Abstract: The aviation industry’s contribution to global greenhouse gas (GHG) emissions has been on an unsteady rise for the past few decades. This paper aims to identify the determinants of increasing GHG emissions in Europe in a dynamic panel setting, paying specific attention to the role of the European Union Emissions Trading System (EU ETS). Unlike previous studies, this paper proposes business tourism spending and capital investment in the tourism and travel industry as explanatory factors together with GDP per capita and jet fuel consumption. Unexpectedly, the EU ETS coverage is found to have an increasing role for GHG emissions from international aviation in countries where the system is put into effect. The results suggest that a more targeted emissions reduction policy needs to be implemented in order to mitigate aviation emissions in the region.

Keywords: greenhouse gas emissions; aviation industry; EU ETS; business tourism spending; capital investment in tourism and travel (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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