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Pollution abatement costs change decomposition for airlines: An analysis from a dynamic perspective

In this paper, we define the pollution abatement cost (PAC) as the ratio of the outputs when the undesirable outputs are freely disposed to the outputs when the undesirable outputs are weakly disposed. Then we propose a Dynamic Environmental DEA model to calculate the pollution abatement cost change indexes, which are decomposed into technical change index, input level change index and undesirable output production change index. An empirical study is done based on the actual data of 18 large global airlines from 2008 to 2014. The main findings are: (1) Delta Air Lines has the largest PAC changes. (2) Most airlines' PACs have decreased. (3) The financial crisis of 2008 and the application of biofuel aircrafts have important impacts on the PAC change.

In this paper, we define the pollution abatement cost (PAC) as the ratio of the outputs when the undesirable outputs are freely disposed to the outputs when the undesirable outputs are weakly disposed. Then we propose a Dynamic Environmental DEA model to calculate the pollution abatement cost change indexes, which are decomposed into technical change index, input level change index and undesirable output production change index. An empirical study is done based on the actual data of 18 large global airlines from 2008 to 2014. The main findings are: (1) Delta Air Lines has the largest PAC changes. (2) Most airlines' PACs have decreased. (3) The financial crisis of 2008 and the application of biofuel aircrafts have important impacts on the PAC change.

Note: Aeronautical Emission Accounting Databases (AEADs) provide full open, transparent and free data download, aiming to provide certain research conditions and data services for academic researchers in the field of aviation and environment, and promote the openness and sharing of scientific research. Data disclosure does not mean data publishing. Users are expected to adhere to academic ethics and integrity, correctly quote data, and give a fair evaluation of AEADs data work. Contacts about the data: cuiqiang1011@163.com or cuiqiang@seu.edu.cn

[Please contact Cui Qiang for data content, scientific research cooperation and other academic issues] cuiqiangcuiqiang1011@163.com> 

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