Linking the Determinants of Air Passenger Flows and Aviation Related Carbon Emissions: A European Study

Xuanyu Yue and Julie Byrne
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Xuanyu Yue: UCD Michael Smurfit Graduate Business School, University College Dublin, A94 XF34 Dublin, Ireland
Julie Byrne: UCD Michael Smurfit Graduate Business School, University College Dublin, A94 XF34 Dublin, Ireland

Sustainability, 2021, vol. 13, issue 14, 1-16

Abstract: Increasing global concern regarding the negative consequences of climate change will see the introduction of comprehensive policy governing aviation-related carbon emissions. With demand for air travel set to accelerate over the next three decades airlines are faced with the task of catering to increased demand while simultaneously achieving emission reductions. In this study we identify the determinants of air passenger flows and flight frequency and assess their impact on carbon emissions and carbon efficiency. Confining our analysis to the European market, we employ Fixed-Effects (FEIV) and Random-Effects (REIV) instrumental variables modelling techniques to 150 intra-Europe routes and find that the factors that are significant in influencing the operational planning decisions of an airline often lead to carbon inefficiencies. Our findings have important implications for both airlines and policymakers. For airlines, we show how the decisions they make to optimise operations can have negative environmental consequences, while we make suggestions as to how policymakers can incentivise airlines to achieve emission reductions.

Keywords: environment; aviation; policy; CO 2 emissions; flight frequency; passenger flows (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 (1)

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