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Title: Carbon Emission Allocation Methods for Aviation Sector: Theory and Experimental Analysis
Keywords: aviation, emission, permit, allocation, experiment
Issue Date: 19-Aug-2010
Citation: ZHANG PENG (2010-08-19). Carbon Emission Allocation Methods for Aviation Sector: Theory and Experimental Analysis. ScholarBank@NUS Repository.
Abstract: The European Union has proposed a Directive to include aviation activities in its Emissions Trading Scheme by 2012. A permit allocation method has been announced that it is relatively easy to implement and has a low administration cost. However, careful scrutiny suggests that the allocation method does not favor energy efficient aircraft operators and may undermine efforts to restrict growth of emission from the aviation sector. An alternative permit allocation method is proposed in this study which favors energy efficient aircraft operators and avoid excessive over competition. The proposed method in this study is easy to implement with low administrative cost. A Cournot model serves as the theoretical foundation upon which experiments are designed to simulate the aviation industry under the proposed emissions trading scheme. The equilibrium is calculated for each permit allocation method. Preliminary results suggest that the outcomes from experiments are consistent with theoretical outcomes.
Appears in Collections:Master's Theses (Open)

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