The impact on Chinese passenger airlines by including them in emission reduction schemes

Civil Aviation contributes to 2-3% of global total GHG emissions. Although it is a small share, the growth rate of aircraft emissions is faster than most industries in the world. Scientists and aircraft manufacture keen to find means to improve fuel efficiency and reduce aircraft emissions. However, technology innovation is not going to be achieved in the near future. Therefore, governments and international organisations placed their focus on policy instruments. This thesis selects China, the largest emitter in the world, as an example to study how emissions mitigation schemes could influence the airline industry. While there has been a spectacular growth in Chinese aviation in recent decades, driven by economic and population growth, limited research has focused on the consequential increase in carbon dioxide emissions from the Chinese aviation industry, which has grown on average by 12% per annum since 1986. Therefore, this research firstly examined historical drivers pushing aviation sector to grow; and then develops a range of empirical models of future aviation growth to explore the cost impact of emission abatement instruments on the growth and competitiveness of the Chinese aviation industry. By using flights between EEA countries and China as a case study, the thesis develops a more detailed region-paired demand model to project future growth of international aviation; and also compared discrete choice analysis with the market share model and myopic game theory to examine the impact on airline competition due to mitigation schemes. There are significant policy challenges in developing mitigation schemes for international aviation, which are explored in this thesis as well. The empirical analysis of the thesis provides a better understanding to policymakers about how to cooperate with developing countries and developed countries together in dealing with the issue of high volumes of aircraft emission

The Political Economy of Industrial Policy in China: The Case of Aircraft Manufacturing

Since 1960, only one new country, Brazil, has succeeded in delivering more than one civil jet per month. Otherwise, all the countries now offering world-class planes were established in aviation by the end of World War I. This being said, low-cost producers within several of the newly emerging markets have already acquired front-end manufacturing expertise as a direct result of industrial offset contracts and/or other forms of technology transfer. In all such cases, government intervention, notably through state ownership, has been predominant, but failures have been numerous in view of the difficulty of aligning ownership structure to financial, managerial, and technological requirements and of garnering the support of domestic interest groups. In this paper the focus is China’s efforts to build a world-class aircraft manufacturing industry. In the first half of the 1990s the potential of the Chinese industry to mount a competitive challenge to Western aircraft builders was largely discounted. Nowadays, as China strives to bear the ARJ-21 project to execution and even considers entering the market for wide-bodies, the threat is taken more seriously. The growth in the Chinese air transport market has reinforced the bargaining power of national aircraft producers and authorities are giving priority to building science and technology capacity in this area. Progress in creating military/civilian synergies has proven much more modest – especially when compared to the shipbuilding industry – and better coordination in the overall industry comes a distant fourth in the explanations’ peaking order.http://deepblue.lib.umich.edu/bitstream/2027.42/40165/3/wp779.pd

High technology in developing countries: Analysis of technology strategy, technology transfer, and success factors in the aircraft industry

Economical development is highly related to technological development. It is\ud therefore not surprising that many of the industrially developing nations follow explicit strategies to increase their technological competence level. Industrially developing countries may even pursue a strategy of developing high technology competencies. This paper analysis the strategies of some developing countries in a particular high technology industry: the aircraft manufacturing industry. The focus is on Brazil, China, Indonesia and Romania. The approach that each of these countries has followed towards developing an indigenous aircraft manufacturing industry is described. Next, the current status of these national industries is analysed. It is concluded that industrially developing countries are stuck in a very difficult situation. It is extremely challenging for industrially developing countries to develop a competitive position in this high technology and global industry. The analysis shows that it is questionable whether technology transfer is effective. As a consequence it may not be a good strategy for industrially developing countries to follow a leapfrogging technology strategy. Instead a more incremental approach towards technological development may be more appropriate

The Political Economy of Industrial Policy in China: The Case of Aircraft Manufacturing

Since 1960, only one new country, Brazil, has succeeded in delivering more than one civil jet per month. Otherwise, all the countries now offering world-class planes were established in aviation by the end of World War I. This being said, low-cost producers within several of the newly emerging markets have already acquired front-end manufacturing expertise as a direct result of industrial offset contracts and/or other forms of technology transfer. In all such cases, government intervention, notably through state ownership, has been predominant, but failures have been numerous in view of the difficulty of aligning ownership structure to financial, managerial, and technological requirements and of garnering the support of domestic interest groups. In this paper the focus is China’s efforts to build a world-class aircraft manufacturing industry. In the first half of the 1990s the potential of the Chinese industry to mount a competitive challenge to Western aircraft builders was largely discounted. Nowadays, as China strives to bear the ARJ-21 project to execution and even considers entering the market for wide-bodies, the threat is taken more seriously. The growth in the Chinese air transport market has reinforced the bargaining power of national aircraft producers and authorities are giving priority to building science and technology capacity in this area. Progress in creating military/civilian synergies has proven much more modest – especially when compared to the shipbuilding industry – and better coordination in the overall industry comes a distant fourth in the explanations’ peaking order.aerospace, China

Robustness and edge addition strategy of air transport networks : a case study of 'the Belt and Road'

Air transportation is of great importance in "the Belt and Road" (the B&R) region. The achievement of the B&R initiative relies on the availability, reliability, and safety of air transport infrastructure. A fundamental step is to find the critical elements in network performance. Considering the uneven distributions of population and economy, the current literature focusing on centrality measures in unweighted networks is not sufficient in the B&R region. By differentiating power and centrality in the B&R region, our analysis leads to two conclusions: (1) Deactivating powerful nodes causes a larger decrease in efficiency than deactivating central nodes. This indicates that powerful nodes in the B&R region are more critical than central nodes for network robustness. (2) Strategically adding edges between high powerful and low powerful nodes can enhance the network's ability to exchange resources efficiently. These findings can be used to adjust government policies for air transport configuration to achieve the best network performance and the most cost effective

Airport Development and Regional Economic Growth in China

Air transport has experienced phenomenal growth in China over the last 30 years, but studies on China’s airport development are few. This paper aims to fill in this literature gap by focusing on the determinants of airport development in the Chinese regions using the most up-to-day and comprehensive data on China’s airports and their related economic and geographical variables. The empirical results based on an augmented production function indicate that airport development is positively related with economic growth, industrial structure, population density, and openness, but negatively related with ground transportation. The growth of airport transportation in the eastern region is slower than in the inland areas, implying a more significant substitution effect of air transport on ground transport in the less densely populated areas, irrespective of economic activities. The results have useful policy implications as any regional transportation development plan has to simultaneously consider the competitive and supplementary effects of both air and land transports in a specific location.Airport Development, Regional Economic Growth, China

Liberalization of China-US air transport market: assessing the impacts of the 2004 and 2007 protocols

This paper examines China's considerations in reaching the 2004 and 2007 Air Service Agreement Protocols with the United States (US) and the impacts of such policy on the China–US market from the perspective of China. Analysis shows that the 2004 and 2007 protocols have profound impacts on the China–US market. The two protocols have been associated with phenomenal traffic growth and intensified competition. Passengers also benefit from much more choice in terms of both airlines and routing. Over time, Chinese carriers' operating performance and financial performance have gradually improved after the liberalization expressed in the protocols. However, the industry's hub-building initiatives are still seriously challenged by competing hubs in Seoul and Tokyo which have diverted substantial number of passengers moving between the China and US markets. Such issues have to be addressed in order to create a win–win outcome for both countries

Spartan Daily September 30, 2009

Volume 133, Issue 17https://scholarworks.sjsu.edu/spartandaily/1285/thumbnail.jp