The Good, the Bad, and the Efficient: Productivity, Efficiency, and Technical Change in the Airline Industry, 2004-11
Boon Lee (),
Clevo Wilson () and
Carl Pasurka ()
Journal of Transport Economics and Policy, 2015, vol. 49, issue 2, 338-354
This study models the joint production of desirable and undesirable output production (that is, CO 2 emissions) of airlines. The Malmquist-Luenberger productivity index is employed to measure productivity growth when undesirable output production is incorporated into the production model. The results show that pollution abatement activities of airlines lowers productivity growth, which suggests that the traditional approach of measuring productivity growth, which ignores CO 2 emissions, overstates 'true' productivity growth. The reliability of the results is also tested and verified using confidence intervals based on bootstrapping. © 2015 LSE and the University of Bath
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