Sustainability in the Aerospace Sector, a Transition to Clean Energy: The E 2 -EVM Valuation Model

Salvador Cruz Rambaud, Joaquín López Pascual and Juan Carlos Meléndez Rodríguez
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Joaquín López Pascual: Departamento de Economía de la Empresa, Universidad Rey Juan Carlos, 28032 Madrid, Spain
Juan Carlos Meléndez Rodríguez: Departamento de Organización de Empresas y Marketing, Campus de Somosaguas, Universidad Complutense de Madrid, 28223 Madrid, Spain

Sustainability, 2021, vol. 13, issue 12, 1-17

Abstract: Civil aviation is one of biggest industrial contributors to CO 2 emissions worldwide. One of the most urgent problems of this sector is providing new technologies to continue operating in a more sustainable environment through a transition to clean energy. The Earned Value Management (EVM) model, as a traditional project management tool, is continuously being revised with new releases and extensions (e.g., ESM, EDM, QEVM, E-EVM, and ZEVM), but to date none of them has applied an expert judgment criterion to be able to modify and anticipate the final result of the project. In such a way, this paper introduces a novel approach to the topic with the so-called Enhanced and Efficient Earned Value Management (denoted E 2 -EVM) model by including this new capability through the real options methodology, thus helping to support the sustainability of the aerospace sector. This research focuses on three main goals: the description of recent green initiatives in the aerospace sector by checking its contribution to reaching the well-known Sustainable Development Goals (SDGs), the development of a new version of the EVM model by applying the real options methodology, and, finally, the financial contribution to the aerospace industry by applying these initiatives and methodologies.

Keywords: sustainable development goals; aerospace industry; earned value management; real options (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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