Carbon Emission Intensity and Its Abatement Choices: A Case of China Eastern

Abstract

Air transportation, which is a derived demand, is booming following the rapid development of the world economy, and carbon emissions from the air transportation industry, which takes fossil fuels as its main energy source, have been increasing. Therefore, with global warming attracting considerable attention, the issue of how to reduce carbon emissions from air transportation has become a hot issue. We take China Eastern Airlines Corporation Limited (China Eastern) as an example to analyze the main factors influencing airlines’ carbon emissions, specifically around the impact of airline internal operating indicators, such as available seat kilometers (ASK), passenger load factor (PLF), fuel consumption per unit passenger kilometer, the average age of operated aircraft, on-time performance (OTP), etc. This paper uses a correlation analysis, panel regression analysis, and other ways to explore the influence mechanism of the above factors on carbon emission intensity. The conclusions for China Eastern are the following: first, PLF has a significant negative relationship with carbon emission intensity; second, fuel consumption per passenger kilometer has a significant negative relationship with carbon emission intensity. Third, OTP has a significant positive relationship with carbon emission intensity. Fourth, fleet size has a significant positive relationship with carbon emission intensity. Finally, we propose several targeted carbon abatement measures for China Eastern, such as improving PLF and OTP, reducing fuel consumption per unit passenger kilometer, speeding up fleet renewal, etc.