The fundamentals of environmental regulation of aviation: a focus on EU emissions trading scheme 

Abstract

Air transportation is contributing to economic prosperity, facilitating growth particularly in developing countries. The main objective of the paper is to give an overview of the fundamentals of environmental regulation of the aviation industry and provide a comprehensive analysis of the European Union Emissions Trading Scheme (EU ETS). A functional comparative analysis of the existing environmental regulations and policies in the aviation industry with reference to welfare economics literature review provides a more solid understanding of the policy differences in terms of objectives, efficiency and enforcement measures.

Nexus of environmental, social, and governance performance in China‐listed companies: Disclosure and green bond issuance

“…As negative media coverage escalates, the likelihood of "greenwashing" companies failing to achieve objectives driven by impression management motives significantly increases, resulting in regulatory intervention and even legal penalties for unethical business practices. These behaviors erode information credibility, generate market "noise," and influence the decisions of investors and stakeholders, obstructing the company's access to funding and hindering future growth (Efthymiou, 2016).…”

“…Conversely, the negative and significant value of the social dimension score implies that companies with elevated social responsibility exhibit reduced proclivity to engage in debt issuance. Such companies aim to curtail default risk and remain accountable to stakeholders, aligning with Hypothesis 2b (Efthymiou, 2016).…”

German Environmental Concerns on Carbon Offsetting and Reduction: How it Deals with European and International Rules?

“…Buissing (2022) argues that sustainability is the keyword for global discussion on environmental issues, in particular climate change, relating to air transport activities. 12 Efthymiou (2021) views emissions trading as a market-based policy tool that combines interests of economic efficiency and environmental issues. 13 Regarding CORSIA, Gonçalves (2017) suggests that this international agreement does not promote the direct reduction of GHG 11 German Emissions Trading Authority, "Structure of the EU ETS," https://www.dehst.de/EN/european-emissions-trading/understanding-emissionstrading/structure/structure_node.html.…”

“…18 Liang and Zhang (2014) explore the Joint Declaration of the Moscow Meeting on Inclusion of International Civil Aviation in the EU-ETS as adopted by 23 countries that expressly objected to such an inclusion. 19 While Efthymiou (2021) believes that air transportation contributes to economic prosperity, facilitating growth particularly in developing countries, 20 this is contrasted with Nkuepo (2012), who argues that the EU-ETS implies discrimination against developing countries. 21 Nugraha (2018) identifies mistakes related to EU-ETS and argues that these should be used as lessons for the Association of South East Asian Nations (ASEAN) in implementing environmental schemes for the aviation sector.…”