ABSTRACT

The goal of support for aviation emissions-reduction policy in developed countries should be the ability to put sustainable fuel into aircraft tanks. In most countries public support for alternative fuel development is most feasibly tied, in political terms, to the question of security of energy supply and stability of price. Efforts to support new fuel development must appear as a line item in someone's budget. One way of using public money more efficiently might be to move to a pull model of fuel technology support. This means putting policy in place that is less attuned to narrow interests and is designed to be regionally, technologically, and sectorally unbiased. Surely nothing shows incentive policy success more than installed capacity, and one point in a recent report prepared for the US Department of Energy (DOE) points out that installed capacity is high in Germany, where feed-in tariff (FIT) is most aggressively applied.