Timothy Peterka

Academic Year: 2009-2010


Arriving at Sustainability: Investigating the Incentives of Airport Sustainability Programs

Area of Concentration

  • Community and Economic Development

Key Terms:

airport, sustainability plan, environmental management system (EMS), incentives, non-competitive industry

Significance/Broader Impact:

This topic is of particular interest to communities around airports and policy makers. Discovering the incentives driving these plans at airports can give policy makers a point of reference when crafting new regulatory policy, policy that can better the lives of communities surrounding airports. Steering airports towards more sustainable operations may be able to improve public health, community relations, and regional economic vitality.

References

Barrett, P. “Cities and their Airports: Policy Formation, 1926-1952.” Journal of Urban History 14 (1987): 112-137.

Brinkhoff, Thomas, 2010. City Population. http://www.citypopulation.de.

Dallas-Ft. Worth International Airport, 2008. “DFW’s Sustainability Initiative.” http://www.dfwairport.com/sustainability/index.php?ctnid=45185.

DiPiazza, S. A. and R. G. Eccles. Building Public Trust: The Future of Corporate Reporting. John Wiley and Sons Inc., 2002.

Greater Toronto Airport Authority, 2007. “Corporate Social Responsibility Report.” http://gtaa.com/local/files/en/Community/Publications/CorporateSocialResponsibilityReport2008-07-23.pdf.

Hart, Oliver, Andrei Shleifer, and Robert W. Vishny. “The Proper Scope of Government: Theory and Application to Prisons.” Quarterly Journal of Economics. 112(4). (1986): 1127-1161.

Ionsecu-Somers, Aileen and Ulrich Steger. Business Logic for Sustainability: A Food and Beverage Industry Perspective. New York: Palgrave Macmillan, 2008.

Ishii, Jun, Sunyoung Jun, and Kurt Van Dender. “Air Travel Choices in Multi-Airport Markets”. Journal of Urban Economics 65 (2009): 216-227.

Kaszewski, Andrea L. and William R. Sheate. “Enhancing the Sustainability of Airport Developments.” Sustainable Development 12 (2004): 183–199.

Los Angeles World Airports, 2008. “Sustainability Plan.” http://www.lawa.org/uploadedFiles/LAWA/pdf/Sustainability%20Plan%20(Final).pdf

Nolen, John, Hale J. Walker, and Justin R. Hartzong. City Plan for San Diego. 1926.
Pels, Eric, Peter Nijkamp, Piet Rietveld. “Access to and competition between airports: a case study for the San Francisco Bay area.” Tinbergen Institute. 37 (2003): 71-83.

Pezzoli, Keith. “Environmental Management Systems (EMSs) and Regulatory Innovation.” California Western Law Review.  335. (1999): 101-131.

Posner, Richard A. “Natural Monoply and its Regulation.” Stanford Law Review. 21. (1969): 548-643.

Philadelphia International Airport, 2008. “Environmental Stewardship Plan.” http://www.phl.org/pdf/PHLenviro_oct08.pdf.

Port of Seattle, 2009. “Environmental Strategy Plan 2009.” http://www.portseattle.org/downloads/community/environment/airport-envirostrategy.pdf.

Raines, Susan Summers, and Aseem Prakash. “Leadership Matters: Policy Entrepreneurship in Corporate Environmental Policy Making.” Administration Society 37, no. 1 (March 1, 2005): 3-22. 

San Diego Regional Airport Authority, 2008. “Sustainability Policy.” http://www.san.org/documents/airport_authority/advisory_committee/08July21/Sustainability_Policy_08July21.pdf.

San Francisco International Airport, 2009. “Climate Action Plan.” http://www.flysfo.com/downloads/sfoclimateactionplan.pdf

San Francisco International Airport, 2010. “Green SFO.” http://www.flysfo.com/web/page/about/green/
Steger, Ulrich, ed. The Business of Sustainability: Building Industry Cases for Corporate Sustainability. New York: Palgrave Macmillan, 2004.

United Nations, 1987. Our Common Future: Report of the World Commission on Environment and Development. http://www.un-documents.net/wced-ocf.htm.
Vancouver Airport Authority, 2009. “Environmental Management Plan.” http://www.yvr.ca/Libraries/ENV_Docs/YVR_EMP_2009.sflb.ashx.

Young, William and Fiona Tilley. “Can Businesses Move Beyond Efficiency? The Shift toward Effectiveness and Equity in the Corporate Sustainability Debate.” Business Strategy and the Environment. 15 (2006): 402-415.

Links:

http://www.scivee.tv/node/16541

Fall SRP Proposal Abstract

Researchers have found that sustainability has grown in salience for business because of the perceived importance of addressing issues of cost reduction, risk management, and brand value building. This projects aims to determine whether airports are addressing sustainability for the same reasons. Unlike most other businesses, airports are largely monopolistic and thus may have different or additional incentives for addressing sustainability. To determine the driving forces behind airport sustainability, this project will consist of a comparative study of five airports from both the United States and internationally. By examining company publications and communications, their geographic context, and airport community relations, this project will enrich the literature by illuminating the incentives of an industry that has heretofore been lacking in attention despite the close proximity of airports to populous communities. Uncovering these incentives can provide insight into how to induce airports into addressing sustainability and thereby improve community health and relations.

Winter Senior Research Project (SRP) Abstract

Researchers have found that sustainability has grown in salience for business because of the perceived importance of addressing issues of cost reduction, risk management, and brand value building. This project aims to determine whether airport administrative bodies are addressing sustainability for the same reasons since, unlike most other businesses, they are largely monopolistic and may have different or additional incentives for addressing sustainability. This study examines cases from the United States and Canada and frames the current wave of airport sustainability efforts as part of a larger movement to the use of Environmental Management System. Through content analysis of airport and industry association documents, this study finds that airports, despite their monopoly standing, have similar incentives for sustainability as do firms in more competitive industries. These findings shed light on the possible means of inducing more airports to address sustainability issues.

Study's Major Findings and Contributions

The trend of businesses “going green” has not escaped the airport industry. They too are adopting and implementing sustainability policies and programs. However, given the lack competition within the airport industry, what incentives do airports have for pursuing sustainability programs? Through evaluating the archival records of eight airports from the Untied States and Canada, airports pursue sustainability programs for reasons similar to those had by firms in more competitive industries. Their incentives fall into three categories: 1) Corporate and Industry, which includes incentives like license to operate and a desire for industry leadership; 2) Awareness, which includes incentives like increased recognition of the need to conserve resources; and 3) Regulation, which includes a desire to demonstrate compliance with specific regulatory demands placed on them by local and state governments.
All airports subscribed to the first category but not subscribed to all three. Also, the cases from California were also the cases interested in demonstrating compliance with new regulatory imperatives. The airports also varied in terms of the size of their local population. City size did not seem to be a determinant of sustainability program adoption. The type of airport did, however, seem to play a role in the adoption of sustainability programs. Seven of the eight cases were hub airports for one or more airlines. The eighth case, San Diego International, was the only non-hub airport and was also the case with the least developed sustainability program. In all, a more exhaustive study would help illuminate broader trends in the incentives for airport sustainability program adoption.

Evidence

In answering my research question, I will utilize a variety of sources. Journal articles and books regarding sustainability in business will be of particular use, as will primary sources such as policies and publications of individual airports. The former will provide the theoretical foundation on which to base the research. The latter will act as useful insights into the driving incentives airports have in sustainability adoption. They will help in outlining explicitly the interests and driving forces organizations have themselves identified and declared as the reasons for sustainability adoption. Additionally, regulations and laws pertaining to sustainability adoption will provide a useful glimpse into the policy incentives airports have or do not have in regards to sustainability adoption.


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