סמינר בחקר ביצועים: Emission Pricing and Capital Replacement: Evidence from Aircraft Fleet Renewal

תאריך: 
א', 20/11/202210:30-12:00
מרצה: 
Dr. Gerben de Jong

Abstract:

I study how emission pricing affects capital replacement and adoption of embodied environmental technology. Pricing encourages firms to accelerate replacement of regulated capital, but this may crowd out other capital renewals. Using asset-level data from the airline industry, I show that the inclusion of intra-European aviation in the EU Emissions Trading Scheme reduced the retirement age of “regulated” short-haul aircraft by 2.8 years (14%), while the retirement age of “unregulated” long-haul aircraft increased by 2 years (11%). Accounting for the higher emissions from long-haul operations, the net environmental benefit of induced fleet renewal is virtually zero and possibly even negative.