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Sources of airline productivity from carbon emissions: an analysis of operational performance under good and bad outputs

Author

Listed:
  • Boon Liat Lee

    (Queensland University of Technology)

  • Clevo Wilson

    (Queensland University of Technology)

  • Carl A. Pasurka

    (U.S. Environmental Protection Agency (1809T), Office of Policy)

  • Hidemichi Fujii

    (Nagasaki University)

  • Shunsuke Managi

    (Queensland University of Technology
    Kyushu University)

Abstract

This study incorporates carbon dioxide emissions in productivity measurement in the airline industry and examines the determinants of productivity change. For this purpose a two-stage analysis under joint production of good and bad outputs is employed to compare the operational performance of airlines. In the first stage, productivity index are derived using the Luenberger productivity indicator. In the second stage, productivity change scores derived therefrom are regressed using the random-effects Generalized Least Squares to quantify determinants of productivity change. The paper finds low cost carriers and average number of hours flown per aircraft having a positive impact on productivity under joint production model while demand variable negatively impacts on productivity under market model.

Suggested Citation

  • Boon Liat Lee & Clevo Wilson & Carl A. Pasurka & Hidemichi Fujii & Shunsuke Managi, 2017. "Sources of airline productivity from carbon emissions: an analysis of operational performance under good and bad outputs," Journal of Productivity Analysis, Springer, vol. 47(3), pages 223-246, June.
    • Handle: RePEc:kap:jproda:v:47:y:2017:i:3:d:10.1007_s11123-016-0480-4
    DOI: 10.1007/s11123-016-0480-4
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    7. Yakath Ali, Nurul Syuhadah & Yu, Chunyan & See, Kok Fong, 2021. "Four decades of airline productivity and efficiency studies: A review and bibliometric analysis," Journal of Air Transport Management, Elsevier, vol. 96(C).
    8. Strauss, Jack & Li, Hongchang & Cui, Jinli, 2021. "High-speed Rail's impact on airline demand and air carbon emissions in China," Transport Policy, Elsevier, vol. 109(C), pages 85-97.
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    More about this item

    Keywords

    Productivity; Luenberger productivity indicator; Pollution abatement; CO2 emissions;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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