RETRACTED: Carbon Emission Mitigation Potentials of Different Policy Scenarios and Their Effects on International Aviation in the Korean Context

Sungwook Yoon and Sukjae Jeong
Additional contact information
Sungwook Yoon: Business School, Kwangwoon University, 26 Kwangwoon-gil (447-1, Wolgye-dong), Nowon-Gu, Seoul 139-701, Korea
Sukjae Jeong: Business School, Kwangwoon University, 26 Kwangwoon-gil (447-1, Wolgye-dong), Nowon-Gu, Seoul 139-701, Korea

Sustainability, 2016, vol. 8, issue 11, 1-21

Abstract: The objective of this study is to seek better policy options for greenhouse gas (GHG) emission reduction in Korea’s international aviation industry by analyzing economic efficiency and environmental effectiveness with a system dynamics (SD) model. Accordingly, we measured airlines sales and CO 2 emission reductions to evaluate economic efficiency and environmental effectiveness, respectively, for various policies. The results show that the average carbon emission reduction rates of four policies compared to the business-as-usual (BAU) scenario between 2015 and 2030 are 4.00% (Voluntary Agreement), 7.25% (Emission Trading System or ETS-30,000), 8.33% (Carbon Tax or CT-37,500), and 8.48% (Emission Charge System or EC-30,000). The average rate of decrease in airline sales compared to BAU for the ETS policy is 0.1% at 2030. Our results show that the ETS approach is the most efficient of all the analyzed CO 2 reduction policies in economic terms, while the EC approach is the best policy to reduce GHG emissions. This study provides a foundation for devising effective response measures pertaining to GHG reduction and supports decision making on carbon tax and carbon credit pricing.

Keywords: international aviation; greenhouse gas (GHG) emissions reduction; system dynamics; Emission Trading System; carbon tax (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.mdpi.com/2071-1050/8/11/1179/pdf (application/pdf)
https://www.mdpi.com/2071-1050/8/11/1179/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:8:y:2016:i:11:p:1179-:d:82975

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().