TY - GEN

T1 - Macroeconomic Effects of Sustainable Aviation - A Multiplier Analysis of Power-to-Liquid Jet Fuel in Germany

AU - Müller, Tobias Wolfgang

AU - Winter, E.

PY - 2023

Y1 - 2023

N2 - Hydrogen is a promising fuel to decarbonize the air transport system and offers different options for applica-tion in aircraft. For instance, hydrogen-based Power-to-Liquid (PtL) fuel represents a viable pathway for the aviation sector. Currently, the academic discourse around PtL fuel focuses on technological or techno-economic issues, while macroeconomic analyses lack behind. However, the introduction of new technologies has numerous implications on sectoral and economy-wide level. To estimate potential macroeconomic ef-fects of PtL jet fuel production in Germany, this paper builds on a Social Accounting Matrix (SAM) - and applies the well-established method of multiplier analysis. Our results indicate economic benefits from PtL fuel on both sectoral and economy-wide level. Compared to mineral oil products like kerosene, PtL jet fuel can generate superior contribution to the domestic economy as well as increased labor demand and produc-tion output in multiple sectors. Despite its advantages, the multiplier approach has some limitations. There-fore, our paper also discusses the need to apply more advanced methods, such as equilibrium models, to fully understand the macroeconomic impact of PtL jet fuel production and use.

AB - Hydrogen is a promising fuel to decarbonize the air transport system and offers different options for applica-tion in aircraft. For instance, hydrogen-based Power-to-Liquid (PtL) fuel represents a viable pathway for the aviation sector. Currently, the academic discourse around PtL fuel focuses on technological or techno-economic issues, while macroeconomic analyses lack behind. However, the introduction of new technologies has numerous implications on sectoral and economy-wide level. To estimate potential macroeconomic ef-fects of PtL jet fuel production in Germany, this paper builds on a Social Accounting Matrix (SAM) - and applies the well-established method of multiplier analysis. Our results indicate economic benefits from PtL fuel on both sectoral and economy-wide level. Compared to mineral oil products like kerosene, PtL jet fuel can generate superior contribution to the domestic economy as well as increased labor demand and produc-tion output in multiple sectors. Despite its advantages, the multiplier approach has some limitations. There-fore, our paper also discusses the need to apply more advanced methods, such as equilibrium models, to fully understand the macroeconomic impact of PtL jet fuel production and use.

UR - https://publikationen.dglr.de/?tx_dglrpublications_pi1%5bdocument_id%5d=610164

U2 - 10.25967/610164

DO - 10.25967/610164

M3 - Conference contribution

BT - Deutscher Luft- und Raumfahrtkongress 2023

ER -