Projecting CO2 Emissions in Aviation

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Journal Title
Journal ISSN
Volume Title
School of Business | Bachelor's thesis
Date
2019
Major/Subject
Mcode
Degree programme
Taloustiede
Language
en
Pages
18+6
Series
Abstract
This thesis analyses studies and the models utilized in projecting environmental externalities in aviation, in the form of CO2 emissions. The thesis will be looking at demand forecasting in the aviation industry, as well as more closely analyzing two different models for projecting emissions. A discussion of possible policy solutions to address the externalities is also included. The thesis is conducted as a literature review, and a small section is also gathered through an interview with a Finnair demand analyst. We find that due to the strong link between economic growth and the demand for aviation, macroeconomic models are often utilized in forecasting long term market development. Another key factor in projecting emissions is the rate of technological development assumed to take place. We find that such forecasting with a relatively long-time horizon can become quite difficult, due to the many assumptions needed to be made for analysis.
Description
Thesis advisor
Murto, Pauli
Mustonen, Mikko
Keywords
externalities, demand forecasting, aviation, economic policy
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