Carbon market-sustainable aviation fuel synergy: Optimizing mechanisms and costs for aviation decarbonization

Sustainable aviation fuel (SAF) is pivotal for decarbonizing civil aviation. Carbon markets can incentivize SAF adoption and reduce costs. They play a pivotal role in attaining carbon neutrality within China’s aviation sector. This study forecasts China’s SAF demand (2025–2050) using a GA-BP neural network model, develops a CO 2 emission and cost model that integrates SAF and carbon market mechanisms, and analyzes emission trends and cost changes under varying scenarios. Results show: SAF adoption could reduce cumulative CO 2 emissions by 1.589 billion tons by 2050. Optimized carbon market mechanisms effectively reduce SAF decarbonization costs. Specifically, via SAF multiplier rules, airlines use carbon credit revenues to offset 36.7% of their SAF costs. Policy recommendations include establishing a supportive system for the entire SAF industry chain, exploring the linkage mechanism between SAF applications and the carbon market, and strengthening the connection between international and domestic policies.

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Publication Details

Journal
Transportation Research Part D Transport and Environment
Published
2025-11-22
DOI
https://doi.org/10.1016/j.trd.2025.105123
Primary Topic
Advanced Aircraft Design and Technologies
Type
article
Field-Weighted Citation Impact
0.00
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article

Carbon market-sustainable aviation fuel synergy: Optimizing mechanisms and costs for aviation decarbonization

Xin Liu, Hongliang Ma, Jing Yang, Lijun Tian
Transportation Research Part D Transport and Environment
Advanced Aircraft Design and Technologies
article

Carbon market-sustainable aviation fuel synergy: Optimizing mechanisms and costs for aviation decarbonization

Xin Liu, Hongliang Ma, Jing Yang, Lijun Tian
article en

Abstract

Sustainable aviation fuel (SAF) is pivotal for decarbonizing civil aviation. Carbon markets can incentivize SAF adoption and reduce costs. They play a pivotal role in attaining carbon neutrality within China’s aviation sector. This study forecasts China’s SAF demand (2025–2050) using a GA-BP neural network model, develops a CO 2 emission and cost model that integrates SAF and carbon market mechanisms, and analyzes emission trends and cost changes under varying scenarios. Results show: SAF adoption could reduce cumulative CO 2 emissions by 1.589 billion tons by 2050. Optimized carbon market mechanisms effectively reduce SAF decarbonization costs. Specifically, via SAF multiplier rules, airlines use carbon credit revenues to offset 36.7% of their SAF costs. Policy recommendations include establishing a supportive system for the entire SAF industry chain, exploring the linkage mechanism between SAF applications and the carbon market, and strengthening the connection between international and domestic policies.

Transportation Research Part D Transport and EnvironmentVol. 150
Civil Aviation Administration of China (CN), Civil Aviation University of China (CN)
Openalex Percentile: Top 67%
Advanced Aircraft Design and Technologies
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