Analysis of Technological Innovation and Environmental Performance Improvement in Aviation Sector

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Int. J. Environ. Res. Public Health 2011, 8 3790 The radical technological changes would not all be welcomed by existing regime players. Airport operators would not be satisfied with substituting the current fuel supply with alternative sources since there needs to be change in the current infrastructure. Kivits et al. [13] notes, “It is important for the aviation industry, and airports in particular, to understand what impact technological transition will have on existing infrastructural systems. The aviation industry has always relied on the presence of oil as its main fuel source, and a clear path dependency is in effect. The substitution of aviation energy from petroleum to another source will have a severe impact on the current supporting technology. A new energy paradigm may require a new distribution network, a new way of generating the fuel, a new type of engine, and perhaps even a new design of aircraft. It is quite possible that an unmentioned (or hitherto un-invented) technology could become the new world standard. No matter which technology gains the upper hand, the aviation industry, and its stakeholders by extension, must be ready to adapt to this technology and provide the requisite infrastructure. In general, airport operators have invested large sums of money in existing infrastructure, which is closely aligned to the requirements of current airplanes optimized for using Jet-A fuel. Since airports are largely dependent on airlines making use of their facilities, there is a formal relationship between the airports and the airlines, usually in the form of a contract whereby airlines rent slots and space. When airlines decide to use new types of airplane, airports can decide to modify airport infrastructure as required, if they feel that doing so it will ultimately benefit them. This occurred with the introduction of the B747 and the A380, which resulted in airstrips having to be elongated and terminals having to be adapted. However, since these infrastructural changes require substantial investments, airports will obviously not make these decisions lightly.” Airlines will also favor incremental technological change due to large costs involved in selling old airplanes and getting new ones. Airplane manufacturers will not favor radical technological change as well since they have to design and build a completely new aircraft to optimize the new technology. For these reasons, it seems that substitution of fossil fuel by biofuels will be more favored from the industry given the cost and time for development [13]. 4.2. Achieving Economic Viability of Alternative Fuels for Sustainable Aviation The transition from jet fuel to biofuel has been analyzed by a game-theoretic approach used by Maciel et al. [48]. The game could be cooperative, when participants negotiate contracts, or non- cooperative, when agreements are not possible [49]. The analysis could be accomplished by observing the interaction between the conventional jet fuel and biofuel, thus simulating gain and loss scenarios for each player in the aviation industry. Thus far, the actions and strategies undertaken by each industry are qualitatively analyzed, especially in regard to the conventional jet aircraft industry. If there is cooperation for a biofuel-kerosene blend, then both will win with positive marginal benefits to the entire society. This scenario is where the industry will reach a consensus, and this biofuel-kerosene blend will be in the industry’s short-term best interests, allaying stakeholder concerns and satisfying shareholder requirements including those of government and the community. This results in the implementation of a technology of medium sustainability, requiring a minimal amount of infrastructural changes. This is the best option in terms of monetary resources over the short to medium term, but could prove undesirable in the long term since a more substantial technology

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