Abstract
In order to combat climate change and control emissions in the aviation industry, it is necessary to research the aviation industry’s potential application of China’s Emissions Trading System (ETS), especially the carbon allowance allocation (CAA). On the basis of historical and benchmarking CAA schemes, considering the responsibility, capacity, and potential of firms, this study proposes the indicators CAA (ICAA) scheme. Moreover, considering firms’ costs, this study also proposes a multi-objective CAA (MCAA) scheme. Finally, the most effective scheme is reported. Results show that under ICAA and MCAA, caps are lower and basically consistent with the emissions reduction target of the “13th Five-Year Plan Work Program for Controlling GHG Emissions of Civil Aviation in China” and international goals. Different types of airlines gain different quotas according to their income and the number and age of their aircraft. The cost of reducing emissions in each scheme is less than 0.35% of their total costs. Under the ICAA-S, ICAA-P, and MCAA schemes, airlines can achieve a reduction in emissions of 19.7%, 20.9%, and 19.6%, respectively. Moreover, under MCAA, the difference in quotas between airlines is smaller. Therefore, of the schemes evaluated, MCAA is the most effective.
Highlights
In 1990, the first Intergovernmental Panel on Climate Change (IPCC) report indicated that global climate change and greenhouse gas emissions posed an imminent threat [1]
According to the results of the historical carbon allowance allocation scheme, China Southern Airlines (CSA) has the highest quota because of its high historical emissions, but, based on its actual emissions, it has the most responsibility for emissions reduction
Comparing the percentage of actual emissions reduction with those estimated under different schemes, it is seen that CSA, Spring Airlines (SA), Juneyao Airlines (JA), and Air China (AC) have smaller emissions reduction burdens because they have already started to take measures to reduce their emissions
Summary
In 1990, the first Intergovernmental Panel on Climate Change (IPCC) report indicated that global climate change and greenhouse gas emissions posed an imminent threat [1]. The principles of equity were used to select indicators that are fitting for the aviation industry and adjust the cap setting in an aim to develop our Indicators of Carbon Allowance Allocation (ICAA) scheme. Because of the many ETSs that cover the aviation industry and CETS plans to cover it, and given the core problem of how to set the cap and allocate the allowance in accordance with the effectiveness of the total emissions space and the participants sharing the responsibility of emissions reduction, this study’s aim is to work out an effective allowance allocation scheme to reduce emissions by using the results of previous studies.
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