Abstract
In this study, we develop an econometric model to identify and investigate the determinants of carbon emission by full-service airline carriers for international transportation. The econometric model explores the CO2 emission determinants for the three largest full-service carriers in the US aviation sector. The econometric model uses the fixed effect panel data regression technique to investigate the causal relationship between aviation carbon emission and its determinants. Based on the significant determinants and major technological innovation-based factors, we further design a simulation model to gauge the impact of each attribute on total carbon emissions of the airlines when the Carbon Offsetting and Reduction Scheme in International Aviation (CORSIA) is implemented. The findings suggest that the adoption of alternative biofuels and CORSIA implementation are necessary steps towards a carbon neutral future. Useful insights on route configuration and adoption of fuel-efficient aircraft fleet are also discussed.
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