A short while ago, it was announced that Airbus believes that hydrogcn-fucllcd aircraft are technically viable, and could start service by 2035, drastically reducing airlines’ CO2 emissions (see Financial Times 26 September 2021). However, Airbus also said that in order to develop such aircraft it requires ‘a degree of certainty about the regulatory environment and the availability of [hydrogen] fuel’. Why is an environment with available fuel such an important component in Airbus’ decision? What is the role of regulation and/or carbon taxation in delivering such an environment? Might other public policy, such as applying to the public’s sense of social responsibility, be an alternative?
Discuss.
