Have Asian airlines caught up with European Airlines? A by-production efficiency analysis

Analyse comparée de l’Eco-performance des compagnies aériennes asiatiques et européennes

Amir Arjomandi, K Hervé Dakpo (k-herve.dakpo@inrae.fr) and Juergen Seufert (jh.seufert@outlook.com)
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Amir Arjomandi: School of Accounting, Economics and Finance [Wollongong] - Faculty of Business [Wollongong] - University of Wollongong [Australia]
K Hervé Dakpo: ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech

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Abstract: This paper extends previous approaches to meta-efficiency measures by incorporating meta-frontiers using good-output, bad-output and by-production efficiencies to compare European and Asian airlines. We also examine whether the heterogeneity in environmental regulatory standards between these regions has emboldened Asian airlines to be less eco-friendly and/or more market-share seeking. We find that the environmental performance of European airlines improved continuously between 2007 and 2013, unlike their competitors in Asia. We argue that this improvement in the environmental performance of the European airlines could be an outcome of the European Emission Trading Scheme (ETS), which set incentives for European airlines to renew their fleets and optimise their operations. Our technological gap ratio estimates also point to some Asian airlines outperforming all other airlines on technological measures, indicating they operate in a more favourable business environment. Overall, our method contributes to the methodological enhancement of data envelopment analysis (DEA) and allows deeper insights into firm operations in general, and environmental efficiency analysis of European and Asian airlines in particular.

Keywords: Data envelopment analysis; Aviation; Meta-efficiency; Emissions (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (15)

Published in Transportation Research Part A: Policy and Practice, 2018, 116, pp.389-403. ⟨10.1016/j.tra.2018.06.031⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02628232

DOI: 10.1016/j.tra.2018.06.031

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