Economic factors affecting the registration of lower CO2 emitting aircraft in Europe. (July 2015)

• Record Type: Journal Article
• Authors: Brugnoli, Alberto; Button, Kenneth; Martini, Gianmaria; Scotti, Davide
• Is Part Of: Transportation research. Volume 38(2015)
• Page Start: 117
• Page End: 124
• Publication Date: 2015-07
• Subjects: Technology transfer -- Air transportation -- Environment -- Aviation fuel costs -- Climate change; Transportation -- Research -- Periodicals; Transportation -- Environmental aspects -- Periodicals; 354.76
• DOI: 10.1016/j.trd.2015.05.001
• Languages: English
• ISSNs: 1361-9209

Abstract

Highlights: There is a clear long-term trend in Europe for registering less CO2 emitting aircraft. The demise of the USSR has significantly reduced the number of higher CO2 emitting aircraft. There is no evidence of any "halo" effect on types of aircraft registered due to the Kyoto Protocol. Larger aircraft have become relatively cleaner than small aircraft. Abstract: We examine the various forces influencing the development and uptake of environmentally beneficial technical changes, focusing on airline technology. Within this context, we consider not only the nature of competition within the final market in which aircraft, an intermediate product, are sold, but also that of the product market itself, the commercial airline industry. The reasons for the gradual reduction in CO2 per seat per aircraft movement in aircraft design are examined in terms of the real costs of aviation fuel, changes in the nature of the supply industry, the movement towards carbon cap-trade policies, and endogenous technical progress in the technology of the industry. The latter being taken as an empirical proxy for the role market forms play in influencing the fuel efficiency of the types of aircraft used. The results support the existence of these latter forces on the demand for aircraft types, allowing for other influences that affect aircraft technology.