Eco-Friendly Airport of the Future

Are Sustainable Airports the Future? Unpacking Efficiency and Eco-Friendly Choices

"Discover how environmental sustainability is reshaping airport efficiency, from eco-friendly initiatives to smarter management practices."


In today's rapidly evolving world, air transport stands as a vital sector, connecting people and cultures across vast distances. As Bill Gates aptly put it, the airplane was humanity's first tool to break down the barriers of distance, fostering a global community. This industry has experienced consistent growth since the inception of the first airline (KLM) in 1919. Today, aviation contributes approximately 4% to the world's GDP, highlighting its significant economic impact. The Airline Deregulation Act of 1978 marked a turning point, initiating a privatization process for airports that were once primarily managed by public entities.

The modern airport is now seen as a strategic asset for governments and a key engine for the tourism sector. Studies have demonstrated their substantial contribution to regional economic development. Airport activities stimulate economic growth by reducing unemployment, increasing income per capita, and boosting productivity, investment, and trade. The performances of airports are of keen interest to various stakeholders, including airlines, governments, passengers, and local communities. Airlines, in particular, use airport benchmarking to inform their investment decisions, focusing on profit maximization. Airports contribute significantly to regional GDP growth, making their efficiency a critical focus for both scientific and managerial communities.

Sustainability has emerged as a critical theme, aimed at reducing human impact on the environment. The transition to sustainable practices, which involves significant societal changes over short periods, is gaining momentum. While tourism boosts regional development, it often comes at an environmental cost, especially in areas with concentrated tourist activity. The air transport sector, a leader in tourist volume, faces environmental challenges related to aircraft movements. Emissions, noise, and waste contribute to pollution and greenhouse effects. Given that aviation accounted for 2% of global CO2 emissions in 2014 and is projected to increase, airport management must prioritize ecological transitions to ensure future growth. Actions include promoting sustainable policies and voluntary certification measures such as ISO 9001, ISO 14001, ISO 50001, and SA 8000.

How Do Greener Airports Achieve Better Performance?

Eco-Friendly Airport of the Future

Airport Carbon Accreditation (ACA), launched in 2008 by Airport Council International (ACI), is the leading institutional certification for reducing carbon footprints. ACA involves six steps: 'Mapping,' 'Reduction,' 'Optimization,' 'Neutrality,' 'Transformation,' and 'Transition.' Compliance with ISO14064 (Greenhouse Gas Accounting) is essential for participation. Achieving the 'Transition' level aligns an airport with the 2015 Paris Agreement, actively limiting global temperature rise to 1.5°C to 2°C above pre-industrial levels. While studies have evaluated airport performance, the connection between efficiency and environmental sustainability remains underexplored.

A recent study has investigated this relationship, focusing on the efficiency of Italian airports and their investments in sustainable practices. The analysis involved a two-step approach: first, the efficiency frontier was estimated using Data Envelopment Analysis (DEA); second, a Tobit regression model was used to assess the relationship between efficiency and environmental sustainability. A proxy variable was created to measure investments in sustainability.

  • Data Envelopment Analysis (DEA): This approach estimates the efficiency frontier of airports, determining how well they convert inputs (resources) into outputs (services).
  • Tobit Regression Model: This model explores the relationship between airport efficiency scores and their commitment to environmental sustainability, as measured by investments and actions toward sustainability.
  • Proxy Variable for Sustainability: The study created a metric to quantify each airport’s progress in adopting sustainable practices.
The efficiency of an airport is an important topic in various research streams. Efficiency, along with the efficiency of the production process, are concepts widely studied in the transport sector. One stream is the use of parametric models such as the stochastic frontier analysis, where it is necessary to establish a functional form for the relationship between input, output and inefficiency. However, another research flow is involved in the adoption of non-parametric models for the study of the frontier, such as Data Envelopment Analysis (DEA) modelling.

Charting a Course for Sustainable Skies

The research underscores a positive correlation between airport efficiency and environmental sustainability, indicating that investments in sustainable policies enhance airport performance. By discriminating between airports with varying degrees of commitment to ecological transition practices, the study highlights the benefits of adhering to ACA programs. This suggests that incorporating environmental performance improvement policies into strategic decisions is crucial for airport managers. As partnerships with low-cost carriers increase and management complexity grows, paying attention to operational efficiency becomes essential. Management must demonstrate how it allocates spaces and resources wisely.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: https://doi.org/10.48550/arXiv.2210.02736,

Title: Toward Environmental Sustainability: An Empirical Study On Airports Efficiency

Subject: econ.gn physics.soc-ph q-fin.ec

Authors: Riccardo Gianluigi Serio, Maria Michela Dickson, Diego Giuliani, Giuseppe Espa

Published: 06-10-2022

Everything You Need To Know

1

What is the significance of the Airline Deregulation Act of 1978 in shaping modern airports?

The Airline Deregulation Act of 1978 was a pivotal moment, initiating the privatization of airports previously managed by public entities. This marked a shift, transforming airports into strategic assets for governments and key engines for the tourism sector. This act set the stage for the modern airport's role in regional economic development and its focus on operational efficiency, aligning with the interests of various stakeholders, including airlines and passengers.

2

How does Airport Carbon Accreditation (ACA) contribute to the sustainability of airports?

Airport Carbon Accreditation (ACA), launched by Airport Council International (ACI), serves as the leading institutional certification for reducing carbon footprints. The ACA program involves six key steps: 'Mapping,' 'Reduction,' 'Optimization,' 'Neutrality,' 'Transformation,' and 'Transition.' Achieving the 'Transition' level of ACA certification aligns an airport with the goals of the 2015 Paris Agreement, aiming to limit global temperature rise. ACA helps airports by providing a structured framework to evaluate and reduce environmental impact.

3

What methodologies were employed in the study to analyze the relationship between airport efficiency and environmental sustainability?

The study used a two-step approach. First, Data Envelopment Analysis (DEA) was applied to estimate the efficiency frontier of airports, assessing how effectively they transform inputs (resources) into outputs (services). Second, a Tobit regression model was employed to evaluate the relationship between airport efficiency scores and their dedication to environmental sustainability, using a proxy variable to quantify investments and actions toward sustainability. This comprehensive analysis provided insights into how investments in sustainability can enhance airport performance.

4

In the context of airport management, why is it important to focus on operational efficiency and environmental sustainability?

As partnerships with low-cost carriers increase and management complexity grows, paying attention to operational efficiency becomes essential. Airports contribute significantly to regional GDP growth, making their efficiency a critical focus. There is a demonstrated positive correlation between airport efficiency and environmental sustainability, where investments in sustainable policies improve airport performance. Given the impact of air transport on the environment, and its contribution to global GDP, integrating environmental performance improvement policies into strategic decisions is crucial for airport managers to ensure long-term viability.

5

How does the concept of Data Envelopment Analysis (DEA) fit into the broader understanding of airport efficiency?

Data Envelopment Analysis (DEA) is a non-parametric model used to study the efficiency frontier, assessing how well airports convert inputs (resources) into outputs (services). In the context of the article, DEA was used to estimate the efficiency frontier of Italian airports. This approach helps determine the relative efficiency of airports by comparing their performance in converting resources into services, like passenger handling and flight operations. By understanding the efficiency frontier, airport managers can benchmark their performance and identify areas for improvement in resource allocation and operational processes.

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