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Analyzing the EU ETS, Challenges and Opportunities for Reducing Greenhouse Gas Emissions from the Aviation Industry in Europe

Author

Listed:
  • Berkay Afşar

    (Department of Tourism Administration, Boğaziçi University, 34342 Istanbul, Turkey)

  • Hasan Berk Bilgiç

    (Department of Tourism Administration, Boğaziçi University, 34342 Istanbul, Turkey)

  • Melih Emen

    (Department of Tourism Administration, Boğaziçi University, 34342 Istanbul, Turkey)

  • Sinan Zarifoğlu

    (Department of Tourism Administration, Boğaziçi University, 34342 Istanbul, Turkey)

  • Sevil Acar

    (Department of Tourism Administration, Boğaziçi University, 34342 Istanbul, Turkey)

Abstract

The aviation industry’s contribution to global greenhouse gas (GHG) emissions has been on an unsteady rise for the past few decades. This paper aims to identify the determinants of increasing GHG emissions in Europe in a dynamic panel setting, paying specific attention to the role of the European Union Emissions Trading System (EU ETS). Unlike previous studies, this paper proposes business tourism spending and capital investment in the tourism and travel industry as explanatory factors together with GDP per capita and jet fuel consumption. Unexpectedly, the EU ETS coverage is found to have an increasing role for GHG emissions from international aviation in countries where the system is put into effect. The results suggest that a more targeted emissions reduction policy needs to be implemented in order to mitigate aviation emissions in the region.

Suggested Citation

  • Berkay Afşar & Hasan Berk Bilgiç & Melih Emen & Sinan Zarifoğlu & Sevil Acar, 2023. "Analyzing the EU ETS, Challenges and Opportunities for Reducing Greenhouse Gas Emissions from the Aviation Industry in Europe," Sustainability, MDPI, vol. 15(24), pages 1-17, December.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:24:p:16874-:d:1300791
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    References listed on IDEAS

    as
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    2. Stephen R. Bond, 2002. "Dynamic panel data models: a guide to micro data methods and practice," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 1(2), pages 141-162, August.
    3. Stephen Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers 09/02, Institute for Fiscal Studies.
    4. Stephen Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
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