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

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  • 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)

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.

Suggested Citation

  • Sungwook Yoon & Sukjae Jeong, 2016. "Carbon Emission Mitigation Potentials of Different Policy Scenarios and Their Effects on International Aviation in the Korean Context," Sustainability, MDPI, vol. 8(11), pages 1-21, November.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:11:p:1179-:d:82975
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    References listed on IDEAS

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    Cited by:

    1. Jiali Zheng & Han Qiao & Shouyang Wang, 2017. "The Effect of Carbon Tax in Aviation Industry on the Multilateral Simulation Game," Sustainability, MDPI, vol. 9(7), pages 1-24, July.
    2. Dong, Huijuan & Dai, Hancheng & Geng, Yong & Fujita, Tsuyoshi & Liu, Zhe & Xie, Yang & Wu, Rui & Fujii, Minoru & Masui, Toshihiko & Tang, Liang, 2017. "Exploring impact of carbon tax on China’s CO2 reductions and provincial disparities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 596-603.

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