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Has airline efficiency affected by the inclusion of aviation into European Union Emission Trading Scheme? Evidences from 22 airlines during 2008–2012

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  • Li, Ye
  • Wang, Yan-zhang
  • Cui, Qiang

Abstract

We investigate the impacts of including aviation into European Union Emission Trading Scheme on airline efficiency since 2008. Airline efficiency is divided into three stages: Operations Stage, Services Stage and Sales Stage, and Greenhouse Gases Emission is treated as an undesirable output of Services Stage. Two models, Network Slacks-Based Measure with weak disposability and Network Slacks-Based Measure with strong disposability, are established to evaluate the efficiencies of 22 international airlines from 2008 to 2012. The results show that: (1) Most airlines' efficiencies have increased in the period. (2) The average efficiency of European airlines is much higher than that of non-European airlines. (3) The model with weak disposability is more reasonable in distinguishing the airline efficiency while strong disposability is a more reasonable way in treating undesirable outputs.

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  • Li, Ye & Wang, Yan-zhang & Cui, Qiang, 2016. "Has airline efficiency affected by the inclusion of aviation into European Union Emission Trading Scheme? Evidences from 22 airlines during 2008–2012," Energy, Elsevier, vol. 96(C), pages 8-22.
    • Handle: RePEc:eee:energy:v:96:y:2016:i:c:p:8-22
    DOI: 10.1016/j.energy.2015.12.039
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