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Investigating the impacts of the EU ETS emission rights on airline environmental efficiency via a Network Environmental SBM model

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  • Qiang Cui
  • Ye Li

Abstract

Based on empirical data from 18 international airlines from 2008 to 2014, this article analyzes the impact of EU emission rights on airline environmental efficiency and calculates the airlines’ emission allowances. Then, we propose a Network Environmental Slack-Based Measure model to discuss the change in efficiency when carbon prices are set at 10, 20 and 30 Euros. The main findings are as follows: (1) Eva Air is the airline with the highest average overall efficiency. (2) For most airlines, their efficiency shows little difference from the original situation, regardless of the carbon price. (3) For airlines with large changes in efficiency, the cost or income from emission rights not only affects the operating expenses but also the fleet size.

Suggested Citation

  • Qiang Cui & Ye Li, 2019. "Investigating the impacts of the EU ETS emission rights on airline environmental efficiency via a Network Environmental SBM model," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 62(8), pages 1465-1488, July.
    • Handle: RePEc:taf:jenpmg:v:62:y:2019:i:8:p:1465-1488
    DOI: 10.1080/09640568.2018.1511417
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    Cited by:

    1. 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).
    2. Cui, Qiang & Jia, Zi-ke, 2023. "Measuring the dynamic airline energy efficiency with non-homogeneous structures," Energy, Elsevier, vol. 266(C).
    3. Ben Lahouel, Béchir & Taleb, Lotfi & Ben Zaied, Younes & Managi, Shunsuke, 2022. "Does primary stakeholder management improve competitiveness? A dynamic network non-parametric frontier approach," Economic Modelling, Elsevier, vol. 116(C).
    4. Md Arif Hasan & Abdullah Al Mamun & Syed Masiur Rahman & Karim Malik & Md. Iqram Uddin Al Amran & Abu Nasser Khondaker & Omer Reshi & Surya Prakash Tiwari & Fahad Saleh Alismail, 2021. "Climate Change Mitigation Pathways for the Aviation Sector," Sustainability, MDPI, vol. 13(7), pages 1-29, March.
    5. See, Kok Fong & Rashid, Azwan Abdul & Yu, Ming-Miin, 2024. "Measuring the network capacity utilization, energy consumption and environmental inefficiency of global airlines," Energy Economics, Elsevier, vol. 132(C).
    6. Hashem Omrani & Meisam Shamsi & Ali Emrouznejad, 2023. "Evaluating sustainable efficiency of decision-making units considering undesirable outputs: an application to airline using integrated multi-objective DEA-TOPSIS," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 5899-5930, July.

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