Sustainability in the Aerospace Sector, a Transition to Clean Energy: The E2-EVM Valuation Model

Abstract

Civil aviation is one of biggest industrial contributors to CO2 emissions worldwide. One of the most urgent problems of this sector is providing new technologies to continue operating in a more sustainable environment through a transition to clean energy. The Earned Value Management (EVM) model, as a traditional project management tool, is continuously being revised with new releases and extensions (e.g., ESM, EDM, QEVM, E-EVM, and ZEVM), but to date none of them has applied an expert judgment criterion to be able to modify and anticipate the final result of the project. In such a way, this paper introduces a novel approach to the topic with the so-called Enhanced and Efficient Earned Value Management (denoted E2-EVM) model by including this new capability through the real options methodology, thus helping to support the sustainability of the aerospace sector. This research focuses on three main goals: the description of recent green initiatives in the aerospace sector by checking its contribution to reaching the well-known Sustainable Development Goals (SDGs), the development of a new version of the EVM model by applying the real options methodology, and, finally, the financial contribution to the aerospace industry by applying these initiatives and methodologies.

Firm value in the airline industry: perspectives on the impact of sustainability and Covid-19

“…Abdi et al ( 2021 ); Rambaud et al ( 2021 ); Rotaris et al ( 2020 ); Abdi et al ( 2020 ), Racine et al ( 2018 ), Shaari et al ( 2020 ), Sonnenschein and Smedby ( 2018 ), Goding et al ( 2018 ), Choi and Ritchie ( 2014 ), Nicolau and Santa-María ( 2012a ), Nicolau and Santa-María ( 2012b ), Azar and Johansson ( 2012 ), Lu and Shon ( 2012 ), Kang et al (2010), MacKerron et al ( 2009 ), Baarsma and Lambooy ( 2005 ), Lee and Moon ( 2018 ), Choi et al ( 2018 ), Karaman et al ( 2018 ), Kim et al ( 2017 ), Lee et al ( 2017 ), Moon et al ( 2016 ), Choi ( 2014 ), Suksmith and Nitivattananon ( 2015 ), Kauffman et al ( 2015 ), Carpentier and Suret ( 2015 ), Jou and Chen ( 2015 ), Schipper et al ( 2001 ), Clarke et al ( 1999 ), Corte and Gaudio ( 2014 ), Schipper et al ( 1998 ).…”

“…Explore how firm characteristics could impact investment in sustainability and vice versa. Study Abdi et al ( 2021 ); Rambaud et al ( 2021 ); Rotaris et al ( 2020 ); Abdi et al ( 2020 ), Racine et al ( 2018 ), Shaari et al ( 2020 ), Sonnenschein and Smedby ( 2018 ), Goding et al ( 2018 ), Choi and Ritchie ( 2014 ), Nicolau and Santa-María ( 2012a ), Nicolau and Santa-María ( 2012b ), Azar and Johansson ( 2012 ), Lu and Shon ( 2012 ), Kang et al (2010), MacKerron et al ( 2009 ), Baarsma and Lambooy ( 2005 ), Lee and Moon ( 2018 ), Choi et al ( 2018 ), Karaman et al ( 2018 ), Kim et al ( 2017 ), Lee et al ( 2017 ), Moon et al ( 2016 ), Choi ( 2014 ), Suksmith and Nitivattananon ( 2015 ), Kauffman et al ( 2015 ), Carpentier and Suret ( 2015 ), Jou and Chen ( 2015 ), Schipper et al ( 2001 ), Clarke et al ( 1999 ), Corte and Gaudio ( 2014 ), Schipper et al ( 1998 ). Topic area Customer relationship and marketing Impact variable Marketing productivity, demand type price sensitivity, security policy, willingness to pay (WTP) for business class seats, social media word-of-mouth (WOM), financial value of the frequent flyer members, third party customer complaints, passengers’ valuations on airline service attributes using stated preference analysis, Method Survey, finite mixture structure individuals, panel data Main finding Dynamic marketing productivity (DMP) : It is argued that DMP could potentially offer some competitive advantage for an airline.…”