IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v134y2019ics0301421519305804.html
   My bibliography  Save this article

The potential impacts of Emissions Trading Scheme and biofuel options to carbon emissions of U.S. airlines

Author

Listed:
  • Chao, Hsun
  • Agusdinata, Datu Buyung
  • DeLaurentis, Daniel A.

Abstract

To reduce carbon emissions, the European Union has implemented the Emissions Trading Scheme (ETS) since 2012 for intra-European commercial flights. In response, airlines have explored various means, including sustainable jet fuels. This article investigates how similar ETS policy would affect domestic carbon emissions when implemented in the United States. The study integrates a model of airlines operations optimization and multi-feedstock biojet fuels life cycle assessment to simulate decisions of biojet fuel and commercial aviation industry responding to an emission policy. We conduct a Monte-Carlo simulation on two scenarios of domestic emission schemes to investigate the adoption of biojet fuels and its impacts on carbon emissions. Our model indicates that implementing an emission policy for U.S. airlines could incentivize adoption of biofuels - a median value of 10% of total fuels in 2050- while only marginally reduce travel demand. Because of a combined effect of emission policy and improved aircraft technology, the emissions in 2050 would only increase 1.37 times the 2005 level despite passenger demand grows by a factor of 2.75. A non-parametric sensitivity analysis suggests that the price of oil, economic growth, and carbon price are the three most significant factors in affecting the fleet-level carbon emissions.

Suggested Citation

  • Chao, Hsun & Agusdinata, Datu Buyung & DeLaurentis, Daniel A., 2019. "The potential impacts of Emissions Trading Scheme and biofuel options to carbon emissions of U.S. airlines," Energy Policy, Elsevier, vol. 134(C).
    • Handle: RePEc:eee:enepol:v:134:y:2019:i:c:s0301421519305804
    DOI: 10.1016/j.enpol.2019.110993
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421519305804
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2019.110993?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Winchester, Niven & McConnachie, Dominic & Wollersheim, Christoph & Waitz, Ian A., 2013. "Economic and emissions impacts of renewable fuel goals for aviation in the US," Transportation Research Part A: Policy and Practice, Elsevier, vol. 58(C), pages 116-128.
    3. Hang, Yin & Qu, Ming & Zhao, Fu, 2011. "Economical and environmental assessment of an optimized solar cooling system for a medium-sized benchmark office building in Los Angeles, California," Renewable Energy, Elsevier, vol. 36(2), pages 648-658.
    4. Schaefera, Martin & Scheelhaaseb, Jania & Grimme, Wolfgang & Maertens, Sven, 2010. "The Economic Impact of the Upcoming EU Emissions Trading System on Airlines and EU Member States – An Innovative Modelling Approach," 51st Annual Transportation Research Forum, Arlington, Virginia, March 11-13, 2010 207238, Transportation Research Forum.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Yue-Jun & Cheng, Hao-Sen, 2021. "The impact mechanism of the ETS on CO2 emissions from the service sector: Evidence from Beijing and Shanghai," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    2. Xuanyu Yue & Julie Byrne, 2021. "Linking the Determinants of Air Passenger Flows and Aviation Related Carbon Emissions: A European Study," Sustainability, MDPI, vol. 13(14), pages 1-16, July.
    3. Ren, Yi-Shuai & Huynh, Toan Luu Duc & Liu, Pei-Zhi & Narayan, Seema, 2024. "Is the carbon emission trading scheme conducive to promoting energy transition? Some empirical evidence from China," Energy Economics, Elsevier, vol. 134(C).
    4. Yue, Xuanyu & Byrne, Julie, 2024. "Identifying the determinants of carbon emissions of individual airlines around the world," Journal of Air Transport Management, Elsevier, vol. 115(C).
    5. Jia, Zhijie & Lin, Boqiang, 2020. "Rethinking the choice of carbon tax and carbon trading in China," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    6. Sajad Ebrahimi & Joseph Szmerekovsky & Bahareh Golkar & Seyed Ali Haji Esmaeili, 2023. "Designing a Renewable Jet Fuel Supply Chain: Leveraging Incentive Policies to Drive Commercialization and Sustainability," Mathematics, MDPI, vol. 11(24), pages 1-20, December.
    7. Dixit, Aasheesh & Kumar, Patanjal & Jakhar, Suresh Kumar, 2022. "Effectiveness of carbon tax and congestion cost in improving the airline industry greening level and welfare: A case of two competing airlines," Journal of Air Transport Management, Elsevier, vol. 100(C).
    8. Yeonjeong Lee & Seong-Min Yoon, 2020. "Dynamic Spillover and Hedging among Carbon, Biofuel and Oil," Energies, MDPI, vol. 13(17), pages 1-19, August.
    9. Dalia Streimikiene & Kristina Lasickaite & Marinko Skare & Grigorios Kyriakopoulos & Rimantas Dapkus & Pham Anh Duc, 2021. "The impact of Corporate Social Responsibility on Corporate Image: Evidence of budget airlines in Europe," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 925-935, March.
    10. Pérez-Calderón, Esteban & Milanés-Montero, Patricia & Gutíerrez-Pérez, Cristina, 2021. "Climate change, where do we come from and where are we going? European aviation sector behaviour," Transport Policy, Elsevier, vol. 114(C), pages 40-48.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cui, Qiang & Li, Ye & Wei, Yi-Ming, 2017. "Exploring the impacts of EU ETS on the pollution abatement costs of European airlines: An application of Network Environmental Production Function," Transport Policy, Elsevier, vol. 60(C), pages 131-142.
    2. Cui, Qiang, 2019. "Investigating the airlines emission reduction through carbon trading under CNG2020 strategy via a Network Weak Disposability DEA," Energy, Elsevier, vol. 180(C), pages 763-771.
    3. Cui, Qiang & Wei, Yi-Ming & Li, Ye, 2016. "Exploring the impacts of the EU ETS emission limits on airline performance via the Dynamic Environmental DEA approach," Applied Energy, Elsevier, vol. 183(C), pages 984-994.
    4. Li, Ye & Cui, Qiang, 2017. "Carbon neutral growth from 2020 strategy and airline environmental inefficiency: A Network Range Adjusted Environmental Data Envelopment Analysis," Applied Energy, Elsevier, vol. 199(C), pages 13-24.
    5. Thanh Ngo & Kan Wai Hong Tsui, 2022. "Estimating the confidence intervals for DEA efficiency scores of Asia-Pacific airlines," Operational Research, Springer, vol. 22(4), pages 3411-3434, September.
    6. Ying Li & Tai‐Yu Lin & Yung‐ho Chiu & Shu‐Ning Lin & Tzu‐Han Chang, 2021. "Impact of alliances and delay rate on airline performance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(6), pages 1607-1618, September.
    7. Winchester, Niven & Malina, Robert & Staples, Mark D. & Barrett, Steven R.H., 2015. "The impact of advanced biofuels on aviation emissions and operations in the U.S," Energy Economics, Elsevier, vol. 49(C), pages 482-491.
    8. Tobias Mueller & Steven Gronau, 2023. "Fostering Macroeconomic Research on Hydrogen-Powered Aviation: A Systematic Literature Review on General Equilibrium Models," Energies, MDPI, vol. 16(3), pages 1-33, February.
    9. Reimer, Jeffrey J. & Zheng, Xiaojuan, 2017. "Economic analysis of an aviation bioenergy supply chain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 945-954.
    10. Yu, Ming-Miin & Rakshit, Ipsita, 2023. "Target setting for airlines incorporating CO2 emissions: The DEA bargaining approach," Journal of Air Transport Management, Elsevier, vol. 108(C).
    11. Gössling, Stefan & Cohen, Scott, 2014. "Why sustainable transport policies will fail: EU climate policy in the light of transport taboos," Journal of Transport Geography, Elsevier, vol. 39(C), pages 197-207.
    12. Chen, Y.-H. Henry & Paltsev, Sergey & Reilly, John & Morris, Jennifer, 2014. "The MIT EPPA6 Model: Economic Growth, Energy Use, and Food Consumption," Conference papers 332461, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Wu, Dan & Aye, Lu & Ngo, Tuan & Mendis, Priyan, 2017. "Optimisation and financial analysis of an organic Rankine cycle cooling system driven by facade integrated solar collectors," Applied Energy, Elsevier, vol. 185(P1), pages 172-182.
    14. Cui, Qiang & Li, Xin-yi, 2021. "Investigating the Profit Pollution Abatement Costs difference before and after the “Carbon neutral growth from 2020” strategy was proposed," Research in Transportation Economics, Elsevier, vol. 90(C).
    15. Tempesti, Duccio & Fiaschi, Daniele, 2013. "Thermo-economic assessment of a micro CHP system fuelled by geothermal and solar energy," Energy, Elsevier, vol. 58(C), pages 45-51.
    16. Boris Delač & Branimir Pavković & Vladimir Glažar, 2023. "Economic and Energetic Assessment and Comparison of Solar Heating and Cooling Systems," Energies, MDPI, vol. 16(3), pages 1-20, January.
    17. Al-Ugla, A.A. & El-Shaarawi, M.A.I. & Said, S.A.M. & Al-Qutub, A.M., 2016. "Techno-economic analysis of solar-assisted air-conditioning systems for commercial buildings in Saudi Arabia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1301-1310.
    18. Seufert, Juergen Heinz & Arjomandi, Amir & Dakpo, K. Hervé, 2017. "Evaluating airline operational performance: A Luenberger-Hicks-Moorsteen productivity indicator," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 104(C), pages 52-68.
    19. Cui, Qiang, 2019. "The online pricing strategy of low-cost carriers when carbon tax and competition are considered," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 420-432.
    20. Escalante, Edwin Santiago Rios & Ramos, Luth Silva & Rodriguez Coronado, Christian J. & de Carvalho Júnior, João Andrade, 2022. "Evaluation of the potential feedstock for biojet fuel production: Focus in the Brazilian context," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:134:y:2019:i:c:s0301421519305804. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.