A Study on the Relationship between ANSP Financial Profitability and Emission Gas Values

Abstract

During the initial quarter of the 21st century, the planet experienced a substantial shift in its climate, with the onset of a process of global heating that began to disrupt the environmental equilibrium. While a multitude of factors have contributed to this phenomenon, a significant contributing element is the substantial increase in the emission of pollutants on a national, regional and international scale. This phenomenon poses a significant challenge for nations worldwide.  This paper proposes a novel econometric approach to describe European airspace with regard to emission production. To this end, the model utilises a panel regression approach incorporating variables (as GRA methodology based profitability ratios, emission values, GDP,  population, labour, cargo volume, number of passengers and emission values) of Air Navigation Service Providers in continental Europe. The findings indicate a positive relationship between the formed-profitability index values and carbon dioxide and nitrogen oxide values. Specifically, a one percent increase in carbon dioxide (CO₂) emissions is associated with a 0.442 percent increase in profitability (index), while a one percent increase in nitrogen oxide (NO) is linked to a 0.174 percent increase in profitability (index) for the 2017-2020 (pre-Covid 19) period.  The analysis indicates that the busiest routes or countries are those where the production of carbon dioxide and nitrogen oxide is highest. In addition to this, a conceptual map is formulated, drawing upon extant literature.