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Sources of airline productivity from carbon emissions: an analysis of operational performance under good and bad outputs

Boon Lee, Clevo Wilson, Carl Pasurka (), Hidemichi Fujii () and Shunsuke Managi

Journal of Productivity Analysis, 2017, vol. 47, issue 3, 223-246

Abstract: Abstract This study incorporates carbon dioxide emissions in productivity measurement in the airline industry and examines the determinants of productivity change. For this purpose a two-stage analysis under joint production of good and bad outputs is employed to compare the operational performance of airlines. In the first stage, productivity index are derived using the Luenberger productivity indicator. In the second stage, productivity change scores derived therefrom are regressed using the random-effects Generalized Least Squares to quantify determinants of productivity change. The paper finds low cost carriers and average number of hours flown per aircraft having a positive impact on productivity under joint production model while demand variable negatively impacts on productivity under market model.

Keywords: Productivity; Luenberger productivity indicator; Pollution abatement; CO2 emissions (search for similar items in EconPapers)
JEL-codes: C43 D24 L93 Q50 (search for similar items in EconPapers)
Date: 2017
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