Environmental temporal technology transfers in CO2 reductions for airlines

This paper looks at aircrat as a case study in order to examine some of the forces that influence environmentally beneficial technology changes. The reasons for the gradual reduction in CO2 per seat in aircraft design are examined in terms of the costs of aviation fuel, the movement towards fuel trading, and endogenous technical progress in the technology of the industry.The results suggest a significant role played by technology transfer from one model of aircraft to another in influencing the fuel efficiency of aircrafts, with raising fuel prices over the long-term also being significant.