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Carbon emission allocation methods for the aviation sector

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  • Chin, Anthony T.H.
  • Zhang, Peng

Abstract

The European Union Directive 2008/101/EC to include aviation activities in its Emissions Trading Scheme by 2012 has met with mixed reactions. Any permit allocation method must be relatively easy to understand, implement and low in administration costs. The proposed method of allocation however does not favor energy efficient aircraft operators and may undermine efforts to restrict growth of emissions from the aviation sector. This study proposes an alternative permit allocation method which favors energy efficient aircraft operators and avoids excessive over competition. It tests the outcomes through experiments. The experiments are built on the Cournot model designed to simulate the aviation industry under the EU and Augmented EU emissions trading schemes. Results suggest higher profits for airlines but at the expense of higher operating costs. The higher profits are primarily the result of higher revenues.

Suggested Citation

  • Chin, Anthony T.H. & Zhang, Peng, 2013. "Carbon emission allocation methods for the aviation sector," Journal of Air Transport Management, Elsevier, vol. 28(C), pages 70-76.
    • Handle: RePEc:eee:jaitra:v:28:y:2013:i:c:p:70-76
    DOI: 10.1016/j.jairtraman.2012.12.013
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    References listed on IDEAS

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    Cited by:

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    2. Bao-Jun Tang & Yu-Jie Hu, 2019. "How to Allocate the Allowance for the Aviation Industry in China’s Emissions Trading System," Sustainability, MDPI, vol. 11(9), pages 1-18, May.
    3. Xiao-Yi Li & Bao-Jun Tang, 2017. "Incorporating the transport sector into carbon emission trading scheme: an overview and outlook," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 88(2), pages 683-698, September.
    4. Aneta Wlodarczyk, 2017. "Regime-dependent Assessment of Risk Concerning the International Aviation Inclusion Into the EU ETS," Dynamic Econometric Models, Uniwersytet Mikolaja Kopernika, vol. 17, pages 129-145.
    5. Nava, Consuelo R. & Meleo, Linda & Cassetta, Ernesto & Morelli, Giovanna, 2018. "The impact of the EU-ETS on the aviation sector: Competitive effects of abatement efforts by airlines," Transportation Research Part A: Policy and Practice, Elsevier, vol. 113(C), pages 20-34.
    6. Winchester, Niven, 2019. "A win-win solution to abate aviation CO2 emissions," Journal of Air Transport Management, Elsevier, vol. 80(C), pages 1-1.
    7. Park, So-Young & Wang, Xinchen & Oh, Yeeun & Hong, Soo-Min & Woo, Su-Han, 2025. "Application of structural topic modeling in a literature review of air transport," Journal of Air Transport Management, Elsevier, vol. 122(C).
    8. Sun, Yulong & Zheng, Jianfeng & Yang, Lingxiao & Li, Xia, 2024. "Allocation and trading schemes of the maritime emissions trading system: Liner shipping route choice and carbon emissions," Transport Policy, Elsevier, vol. 148(C), pages 60-78.

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