Is air transport sustainable in remote regions? A socio-environmental perspective

Air transport is crucial for ensuring population mobility owing to time travel savings, especially in remote regions. Despite its benefits, air transport is still one of the most polluting industries worldwide. Under the European Green Deal, sustainable transport needs to be enhanced to promote sust...

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Main Authors: André Oliveira, Pedro Pimentel, Gualter Couto
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Journal of Applied Economics
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/15140326.2025.2453679
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author André Oliveira
Pedro Pimentel
Gualter Couto
author_facet André Oliveira
Pedro Pimentel
Gualter Couto
author_sort André Oliveira
collection DOAJ
description Air transport is crucial for ensuring population mobility owing to time travel savings, especially in remote regions. Despite its benefits, air transport is still one of the most polluting industries worldwide. Under the European Green Deal, sustainable transport needs to be enhanced to promote sustainable economic development, revealing the need for better decision-making tools. Nonetheless, limited research presents valuation frameworks under uncertainty and socio-environmental impacts simultaneously. Using a real options analysis and utility theory, a valuation framework is developed to assess the economic and socio-environmental impacts of air transport under Public Service Obligations. The results for the Azores case, a nine-island archipelago in Portugal, show a positive impact on social welfare. This study contributes to the literature by developing a valuation framework suitable for assessing sustainable transport networks and by presenting a case study with real data.
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publishDate 2025-12-01
publisher Taylor & Francis Group
record_format Article
series Journal of Applied Economics
spelling doaj-art-b0d424237f9d42f19b4e9a5a48ea307b2025-01-20T09:23:57ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262025-12-0128110.1080/15140326.2025.2453679Is air transport sustainable in remote regions? A socio-environmental perspectiveAndré Oliveira0Pedro Pimentel1Gualter Couto2Fundo de Maneio and School of Business and Economics, Universidade dos Açores, Ponta Delgada, PortugalSchool of Business and Economics and CEEAplA, Universidade dos Açores, Ponta Delgada, PortugalSchool of Business and Economics and CEEAplA, Universidade dos Açores, Ponta Delgada, PortugalAir transport is crucial for ensuring population mobility owing to time travel savings, especially in remote regions. Despite its benefits, air transport is still one of the most polluting industries worldwide. Under the European Green Deal, sustainable transport needs to be enhanced to promote sustainable economic development, revealing the need for better decision-making tools. Nonetheless, limited research presents valuation frameworks under uncertainty and socio-environmental impacts simultaneously. Using a real options analysis and utility theory, a valuation framework is developed to assess the economic and socio-environmental impacts of air transport under Public Service Obligations. The results for the Azores case, a nine-island archipelago in Portugal, show a positive impact on social welfare. This study contributes to the literature by developing a valuation framework suitable for assessing sustainable transport networks and by presenting a case study with real data.https://www.tandfonline.com/doi/10.1080/15140326.2025.2453679European green dealsocial welfarepublic service obligationsair transport
spellingShingle André Oliveira
Pedro Pimentel
Gualter Couto
Is air transport sustainable in remote regions? A socio-environmental perspective
Journal of Applied Economics
European green deal
social welfare
public service obligations
air transport
title Is air transport sustainable in remote regions? A socio-environmental perspective
title_full Is air transport sustainable in remote regions? A socio-environmental perspective
title_fullStr Is air transport sustainable in remote regions? A socio-environmental perspective
title_full_unstemmed Is air transport sustainable in remote regions? A socio-environmental perspective
title_short Is air transport sustainable in remote regions? A socio-environmental perspective
title_sort is air transport sustainable in remote regions a socio environmental perspective
topic European green deal
social welfare
public service obligations
air transport
url https://www.tandfonline.com/doi/10.1080/15140326.2025.2453679
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AT pedropimentel isairtransportsustainableinremoteregionsasocioenvironmentalperspective
AT gualtercouto isairtransportsustainableinremoteregionsasocioenvironmentalperspective