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The Good, the Bad, and the Efficient: Productivity, Efficiency, and Technical Change in the Airline Industry, 2004-11

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  • Boon L. Lee
  • Clevo Wilson
  • Carl A. Pasurka, Jr

Abstract

This study models the joint production of desirable and undesirable output production (that is, CO 2 emissions) of airlines. The Malmquist-Luenberger productivity index is employed to measure productivity growth when undesirable output production is incorporated into the production model. The results show that pollution abatement activities of airlines lowers productivity growth, which suggests that the traditional approach of measuring productivity growth, which ignores CO 2 emissions, overstates 'true' productivity growth. The reliability of the results is also tested and verified using confidence intervals based on bootstrapping. © 2015 LSE and the University of Bath

Suggested Citation

  • Boon L. Lee & Clevo Wilson & Carl A. Pasurka, Jr, 2015. "The Good, the Bad, and the Efficient: Productivity, Efficiency, and Technical Change in the Airline Industry, 2004-11," Journal of Transport Economics and Policy, University of Bath, vol. 49(2), pages 338-354, April.
    • Handle: RePEc:tpe:jtecpo:v:49:y:2015:i:2:p:338-354
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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. Eucabeth Majiwa & Boon L. Lee & Clevo Wilson, 2018. "Increasing agricultural productivity while reducing greenhouse gas emissions in sub†Saharan Africa: myth or reality?," Agricultural Economics, International Association of Agricultural Economists, vol. 49(2), pages 183-192, March.
    4. Lena, Daniela & Pasurka, Carl A. & Cucculelli, Marco, 2022. "Environmental regulation and green productivity growth: Evidence from Italian manufacturing industries," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    5. Yu, Ming-Miin & Chang, Yu-Chun & Chen, Li-Hsueh, 2016. "Measurement of airlines’ capacity utilization and cost gap: Evidence from low-cost carriers," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 186-198.
    6. 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).

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