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Low-carbon sustainable aviation fuel (SAF) made from renewable biomass and waste resources have the potential to deliver the performance of petroleum-based jet fuel but with a fraction of its carbon footprint, giving airlines solid footing for decoupling greenhouse gas (GHG) emissions from flight (U.S. Department of Energy, 2020). SAFs lower carbon intensity makes it an important solution for reducing aviation greenhouse gas emissions (U.S. EPA).
The Renewable Fuel Standard (RFS) program was created in 2005 under the Energy Policy Act (EPAct). The RFS program is a national policy that requires a certain volume of renewable fuel to replace or reduce the quantity of petroleum-based transportation fuel, heating oil or jet fuel (U.S. EPA). The California Air Resources Board amended the Low Carbon Fuel Standard to include aviation fuels in 2018, specifically to include alternative jet fuel as an “opt-in” pathway within the program. With the 2018 update, conventional fossil jet fuel still does not generate deficits for obligated parties such as oil importers and refiners; however, alternative jet fuel is eligible to generate Low Carbon Fuel Standard credits based on their life cycle carbon intensity and proportionally to their greenhouse gas emission reduction. Credit holders can use them to offset deficits generated by gasoline and diesel within the program.
Since it is a novel trend in aviation (started in 2018 in California), there is still a lack of literature showing the economic effect of adoption of SAFs into aviation market. The purpose of this paper is to analyze the effect of policy adoption of SAFs into aviation industry in the USA and analyze the aviation outcomes (proxied by number of seats supplied at the airline-route level transportation, frequency of flights/routes). We will focus our analysis first in California, since according to US EPA, the SAF fuel is used primarily in California due to the LCFS (2018).
A range of different methods to analyze those questions will be used: time series, panel regressions, synthetic control method, etc. California-specific US EPA, FAA data on SAF production/consumption, air flights related data and other data will be used in the analysis.
The Renewable Fuel Standard (RFS) program was created in 2005 under the Energy Policy Act (EPAct). The RFS program is a national policy that requires a certain volume of renewable fuel to replace or reduce the quantity of petroleum-based transportation fuel, heating oil or jet fuel (U.S. EPA). The California Air Resources Board amended the Low Carbon Fuel Standard to include aviation fuels in 2018, specifically to include alternative jet fuel as an “opt-in” pathway within the program. With the 2018 update, conventional fossil jet fuel still does not generate deficits for obligated parties such as oil importers and refiners; however, alternative jet fuel is eligible to generate Low Carbon Fuel Standard credits based on their life cycle carbon intensity and proportionally to their greenhouse gas emission reduction. Credit holders can use them to offset deficits generated by gasoline and diesel within the program.
Since it is a novel trend in aviation (started in 2018 in California), there is still a lack of literature showing the economic effect of adoption of SAFs into aviation market. The purpose of this paper is to analyze the effect of policy adoption of SAFs into aviation industry in the USA and analyze the aviation outcomes (proxied by number of seats supplied at the airline-route level transportation, frequency of flights/routes). We will focus our analysis first in California, since according to US EPA, the SAF fuel is used primarily in California due to the LCFS (2018).
A range of different methods to analyze those questions will be used: time series, panel regressions, synthetic control method, etc. California-specific US EPA, FAA data on SAF production/consumption, air flights related data and other data will be used in the analysis.
Presenter(s)
Ulmaskhon Kalandarova, Colorado State University, Fort Collins
Non-Presenting Authors
Anita Alves Pena, Colorado State University, Fort Collins
Stephan Weiler, Colorado State University, Fort Collins
Effects of Using the Sustainable Aviation Fuels in the U.S. Air Transportation: Case Study of California
Category
Volunteer Session Abstract Submission
Description
Session: [289] TOPICS IN TRANSPORTATION (TPUG)
Date: 7/5/2023
Time: 4:30 PM to 6:15 PM
Date: 7/5/2023
Time: 4:30 PM to 6:15 PM