Investigating the Profit Pollution Abatement Costs difference before and after the “Carbon neutral growth from 2020” strategy was proposed

Abstract

Based on the empirical data of 22 airlines during 2014–2019, the paper studies the impact of the introduction of Carbon neutral growth from 2020 (CNG2020) strategy on airlines' pollution abatement costs. This research considers the prices of inputs and outputs, and proposes a new Profit Pollution Abatement Costs (PPAC) index to ensure that the calculated Net Pollution Abatement Costs (NPAC) index is a cost index rather than a physical index, and a two-stage network environment production function is established to discuss the NPAC differences before and after the CNG2020 strategy was proposed. The main findings are: (a)The introduction of CNG2020 strategy has had a certain degree of impact on the airlines’ net pollution abatement costs. (b)All Nippon Airways has the largest NPAC among the 22 airlines, while Delta Air Lines and Finnair have excellent pollution abatement performance during 2014–2019. (c)Aviation carbon emissions are closely related to jet fuel consumption and route distance.