IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v245y2022ics036054422200175x.html
   My bibliography  Save this article

Can the aviation industry achieve carbon emission reduction and revenue growth simultaneously under the CNG2020 strategy? An empirical study with 25 benchmarking airlines

Author

Listed:
  • Cui, Qiang
  • Hu, Yu-xin
  • Yu, Li-ting

Abstract

The CNG2020 strategy proposed in 2016 has directly impacted the global aviation industry, and the ensuing COVID-19 pandemic has brought the global aviation industry to a standstill. This paper calculates the Pollution Abatement Costs (PAC) index and regulated profits of the global aviation industry by establishing Data Envelopment Analysis (DEA) model. Then, considering the airlines’ different recovery times from COVID-19, we predict the data of 25 international benchmark airlines from 2021 to 2027 based on the actual data during 2012–2019. The regulated profits can help judge whether airlines can achieve a win-win situation of carbon emission reduction and revenue growth in the future recovery process. We have some findings: 1. Air France-KLM has the maximum regulated profits, while EasyJet has the minimal regulated gains. 2. The setting of route conditions impacts whether airlines can achieve a win-win situation.

Suggested Citation

  • Cui, Qiang & Hu, Yu-xin & Yu, Li-ting, 2022. "Can the aviation industry achieve carbon emission reduction and revenue growth simultaneously under the CNG2020 strategy? An empirical study with 25 benchmarking airlines," Energy, Elsevier, vol. 245(C).
    • Handle: RePEc:eee:energy:v:245:y:2022:i:c:s036054422200175x
    DOI: 10.1016/j.energy.2022.123272
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S036054422200175X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2022.123272?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. 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.
    2. Amankwah-Amoah, Joseph, 2020. "Stepping Up and Stepping Out of COVID-19: New Challenges for Environmental Sustainability Policies in the Global Airline Industry," MPRA Paper 101491, University Library of Munich, Germany.
    3. Färe, Rolf & Grosskopf, Shawna & Pasurka, Carl A., 2007. "Environmental production functions and environmental directional distance functions," Energy, Elsevier, vol. 32(7), pages 1055-1066.
    4. Jingxuan Liu & Ping Qiao & Jian Ding & Luke Hankinson & Elodie H. Harriman & Edward M. Schiller & Ieva Ramanauskaite & Haowei Zhang, 2020. "Will the Aviation Industry Have a Bright Future after the COVID-19 Outbreak? Evidence from Chinese Airport Shipping Sector," JRFM, MDPI, vol. 13(11), pages 1-14, November.
    5. 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.
    6. Abate, Megersa & Christidis, Panayotis & Purwanto, Alloysius Joko, 2020. "Government support to airlines in the aftermath of the COVID-19 pandemic," Journal of Air Transport Management, Elsevier, vol. 89(C).
    7. Tone, Kaoru & Tsutsui, Miki, 2009. "Network DEA: A slacks-based measure approach," European Journal of Operational Research, Elsevier, vol. 197(1), pages 243-252, August.
    8. 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.
    9. Maneenop, Sakkakom & Kotcharin, Suntichai, 2020. "The impacts of COVID-19 on the global airline industry: An event study approach," Journal of Air Transport Management, Elsevier, vol. 89(C).
    10. Ki-Han Song & Solsaem Choi, 2020. "A Study on the Behavioral Change of Passengers on Sustainable Air Transport after COVID-19," Sustainability, MDPI, vol. 12(21), pages 1-18, November.
    11. Czerny, Achim I. & Fu, Xiaowen & Lei, Zheng & Oum, Tae H., 2021. "Post pandemic aviation market recovery: Experience and lessons from China," Journal of Air Transport Management, Elsevier, vol. 90(C).
    12. Sven Maertens & Wolfgang Grimme & Janina Scheelhaase & Martin Jung, 2019. "Options to Continue the EU ETS for Aviation in a CORSIA-World," Sustainability, MDPI, vol. 11(20), pages 1-19, October.
    13. Cui, Qiang & Lin, Jing-ling & Jin, Zi-yin, 2020. "Evaluating airline efficiency under “Carbon Neutral Growth from 2020” strategy through a Network Interval Slack-Based Measure," Energy, Elsevier, vol. 193(C).
    14. 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.
    15. Albers, Sascha & Rundshagen, Volker, 2020. "European airlines′ strategic responses to the COVID-19 pandemic (January-May, 2020)," Journal of Air Transport Management, Elsevier, vol. 87(C).
    16. Lamb, Tracy L. & Winter, Scott R. & Rice, Stephen & Ruskin, Keith J. & Vaughn, Austin, 2020. "Factors that predict passengers willingness to fly during and after the COVID-19 pandemic," Journal of Air Transport Management, Elsevier, vol. 89(C).
    17. Stefano Maria Iacus & Fabrizio Natale & Carlos Satamaria & Spyridon Spyratos & Michele Vespe, 2020. "Estimating and Projecting Air Passenger Traffic during the COVID-19 Coronavirus Outbreak and its Socio-Economic Impact," Papers 2004.08460, arXiv.org, revised Apr 2020.
    18. Samanci, Simge & Didem Atalay, Kumru & Bahar Isin, Feride, 2021. "Focusing on the big picture while observing the concerns of both managers and passengers in the post-covid era," Journal of Air Transport Management, Elsevier, vol. 90(C).
    19. Li, Ye & Cui, Qiang, 2018. "Investigating the role of cooperation in the GHG abatement costs of airlines under CNG2020 strategy via a DEA cross PAC model," Energy, Elsevier, vol. 161(C), pages 725-736.
    20. Sgouridis, Sgouris & Bonnefoy, Philippe A. & Hansman, R. John, 2011. "Air transportation in a carbon constrained world: Long-term dynamics of policies and strategies for mitigating the carbon footprint of commercial aviation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(10), pages 1077-1091.
    21. Suau-Sanchez, Pere & Voltes-Dorta, Augusto & Cugueró-Escofet, Natàlia, 2020. "An early assessment of the impact of COVID-19 on air transport: Just another crisis or the end of aviation as we know it?," Journal of Transport Geography, Elsevier, vol. 86(C).
    22. Cui, Qiang & Li, Ye, 2017. "Airline efficiency measures under CNG2020 strategy: An application of a Dynamic By-production model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 130-143.
    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. Ekici, Selcuk & Ayar, Murat & Kilic, Ugur & Karakoc, T. Hikmet, 2023. "Performance based analysis for the Ankara-London route in terms of emissions and fuel consumption of different combinations of aircraft/engine: An IMPACT application," Journal of Air Transport Management, Elsevier, vol. 108(C).
    2. Ekici, Selcuk & Ayar, Murat & Hikmet Karakoc, T., 2023. "Fuel-saving and emission accounting: An airliner case study for green engine selection," Energy, Elsevier, vol. 282(C).
    3. 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).
    4. Niu, Xiaoqin & Yüksel, Serhat & Dinçer, Hasan, 2023. "Emission strategy selection for the circular economy-based production investments with the enhanced decision support system," Energy, Elsevier, vol. 274(C).
    5. Gunerhan, Ali & Altuntas, Onder & Caliskan, Hakan, 2023. "Utilization of renewable and sustainable aviation biofuels from waste tyres for sustainable aviation transport sector," Energy, Elsevier, vol. 276(C).
    6. Cui, Qiang & Jia, Zike, 2023. "Low-efficient aircraft affecting future aviation carbon transfer among South American countries," Energy, Elsevier, vol. 282(C).
    7. Wang, Yu & Sun, Huimin & Lin, Yiming & Cui, Qiang & Shen, Yanxin & Li, Xin, 2024. "An interval-valued estimation method of aircraft route carbon emission: A function of aircraft seat capacity and route flight time," Energy, Elsevier, vol. 294(C).

    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. Sun, Xiaoqian & Wandelt, Sebastian & Zheng, Changhong & Zhang, Anming, 2021. "COVID-19 pandemic and air transportation: Successfully navigating the paper hurricane," Journal of Air Transport Management, Elsevier, vol. 94(C).
    2. Sun, Xiaoqian & Wandelt, Sebastian & Zhang, Anming, 2022. "STARTUPS: Founding airlines during COVID-19 - A hopeless endeavor or an ample opportunity for a better aviation system?," Transport Policy, Elsevier, vol. 118(C), pages 10-19.
    3. 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.
    4. Chen, Yuting & Fuellhart, Kurt & Grubesic, Tony H. & Zhang, Shengrun & Witlox, Frank, 2024. "An analysis of the context factors influencing the diverse response of airports to COVID-19 using panel and group regression," Transportation Research Part A: Policy and Practice, Elsevier, vol. 179(C).
    5. Kim, Myeonghyeon & Sohn, Jeongwoong, 2022. "Passenger, airline, and policy responses to the COVID-19 crisis: The case of South Korea," Journal of Air Transport Management, Elsevier, vol. 98(C).
    6. Qiu, Rui & Hou, Shuhua & Meng, Zhiyi, 2021. "Low carbon air transport development trends and policy implications based on a scientometrics-based data analysis system," Transport Policy, Elsevier, vol. 107(C), pages 1-10.
    7. 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.
    8. Su, Min & Hu, Baoyang & Luan, Weixin & Tian, Chuang, 2022. "Effects of COVID-19 on China's civil aviation passenger transport market," Research in Transportation Economics, Elsevier, vol. 96(C).
    9. Warnock-Smith, David & Graham, Anne & O'Connell, John F. & Efthymiou, Marina, 2021. "Impact of COVID-19 on air transport passenger markets: Examining evidence from the Chinese market," Journal of Air Transport Management, Elsevier, vol. 94(C).
    10. Cui, Qiang & Lin, Jing-ling & Jin, Zi-yin, 2020. "Evaluating airline efficiency under “Carbon Neutral Growth from 2020” strategy through a Network Interval Slack-Based Measure," Energy, Elsevier, vol. 193(C).
    11. Santos, Luca J. & Oliveira, Alessandro V.M. & Aldrighi, Dante Mendes, 2021. "Testing the differentiated impact of the COVID-19 pandemic on air travel demand considering social inclusion," Journal of Air Transport Management, Elsevier, vol. 94(C).
    12. Hanson, Daniel & Toru Delibasi, Tuba & Gatti, Matteo & Cohen, Shamai, 2022. "How do changes in economic activity affect air passenger traffic? The use of state-dependent income elasticities to improve aviation forecasts," Journal of Air Transport Management, Elsevier, vol. 98(C).
    13. 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).
    14. Cui, Qiang & Li, Ye & Lin, Jing-ling, 2018. "Pollution abatement costs change decomposition for airlines: An analysis from a dynamic perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 96-107.
    15. Budd, Thomas & Suau-Sanchez, Pere & Halpern, Nigel & Mwesiumo, Deodat & Bråthen, Svein, 2021. "An assessment of air passenger confidence a year into the COVID-19 crisis: A segmentation analysis of passengers in Norway," Journal of Transport Geography, Elsevier, vol. 96(C).
    16. Cui, Qiang & Jin, Zi-yin, 2020. "Airline environmental efficiency measures considering negative data: An application of a modified network Modified Slacks-based measure model," Energy, Elsevier, vol. 207(C).
    17. Yiu, Cho Yin & Ng, Kam K.H. & Yu, Simon C.M. & Yu, Chun Wah, 2022. "Sustaining aviation workforce after the pandemic: Evidence from Hong Kong aviation students toward skills, specialised training, and career prospects through a mixed-method approach," Transport Policy, Elsevier, vol. 128(C), pages 179-192.
    18. Michelmann, Johannes & Schmalz, Ulrike & Becker, Axel & Stroh, Florian & Behnke, Sebastian & Hornung, Mirko, 2023. "Influence of COVID-19 on air travel - A scenario study toward future trusted aviation," Journal of Air Transport Management, Elsevier, vol. 106(C).
    19. Xue, Dabin & Liu, Zhizhao & Wang, Bing & Yang, Jian, 2021. "Impacts of COVID-19 on aircraft usage and fuel consumption: A case study on four Chinese international airports," Journal of Air Transport Management, Elsevier, vol. 95(C).
    20. Martins, António Miguel & Cró, Susana, 2022. "Airline stock markets reaction to the COVID-19 outbreak and vaccines: An event study," Journal of Air Transport Management, Elsevier, vol. 105(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:energy:v:245:y:2022:i:c:s036054422200175x. 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.journals.elsevier.com/energy .

    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.