CNG2020 strategy and airline efficiency: A Network Epsilon-Based Measure with managerial disposability

In this paper, we analyze the impacts of CNG2020 strategy on the efficiency of 29 international airlines during 2021-2023. Predictions are made through neural networks based on the empirical data from 2008 to 2015. Following the principle of CNG2020 strategy, we calculate the emission limit for each airline. Then we propose a new model, Network Epsilon-Based Measure with managerial disposability, to discuss the difference in efficiency of the airlines when the CNG2020 strategy is considered. The main findings are: (1) For most of these 29 airlines, the CNG2020 strategy has little influence on their efficiency. (2) The efficiency has little variation under the following conditions: when the carbon price is 8 $/ton CO2-eq, when the price is 14 $/ton CO2-eq, and when the price is 20 $/ton CO2-eq. (3) Scandinavian is identified as the benchmarking airline.