Carbon budget management in the civil aviation industry using an interactive control perspective

Abstract

Faced with increasingly strict carbon emission control, high-emission enterprises need scientific and rational management systems and methods to strengthen carbon emission reduction management. Among the many management systems and methods, the carbon budget has become an effective emission reduction management tool, allowing the planning of carbon emissions and emission reduction activities and rational arrangement of economic inputs. However, judging from the research status and business practices in China and abroad, there is no general carbon budget system to guide the development of carbon emission and emission reduction activities. Based on this background, this paper first attempts to construct an enterprise carbon budget system comprising four sub-budgets: carbon emission, carbon emission reduction and cost, carbon emission rights trading, and carbon emission reduction net profit/loss. It draws on the idea of interactive control to consider the impact of changes in carbon prices, energy prices, and policy guidelines on carbon emission reductions and losses. A carbon budget management system based on interactive control is then constructed and applied to China National Aviation Holding Air China Group (AC Aviation). The research results show that the carbon budget system based on interactive control can dynamically adjust carbon emission reduction behavior based on changes in carbon and energy prices to make carbon budgeting a more viable carbon reduction tool and institutional arrangement.