Unlocking efficiency and environmental impact: Analyzing concessioned Brazilian airports

Abstract

This study explores airport efficiency concerning environmental performance, considering both positive and negative impacts of operations, particularly related to air pollution. While operational efficiency is commonly assessed, this research uniquely evaluates efficiency gains during concession periods and their environmental ramifications. The research aims to redefine the efficiency analysis paradigm by integrating variables that either benefit or harm the system. It uses Data Envelopment Analysis (DEA) and Principal Component Analysis (PCA) to evaluate airport performance, assessing environmental efficiency through Window Analysis annually from 2015 to 2023. The airports in the sample are categorized into groups based on the volume of passengers in which inefficient ones and the benchmarks are identified. The results highlight heterogeneous environmental efficiencies among airports, with notable variations during the pandemic. Regional airports demonstrate efficiency gains, indicating that decentralizing domestic operations and using more efficient aircraft can reduce pollutant emissions. Additionally, the benchmark analysis identifies high-traffic airports as more likely to emit pollutants. Strategically planning competition among nearby concessioned airports is crucial for sustainable efficiency. This study underscores the intricate environmental and operational dynamics in the airport sector, advocating for a holistic approach to sustainable efficiency. The findings offer valuable insights for regulators, airport operators, and policymakers, suggesting pathways for continuous improvement in Brazilian airports' environmental efficiency.