Towards a secure trading of aviation CO2 allowance

Massimiliano Zanin; Tuba Toru Delibasi; Julio César Triana; Vaishali Mirchandani; Emilio Álvarez Pereira; Alberto Enrich; David Perez; Cengiz Paşaoğlu; Melih Fidanoglu; Emre Koyuncu; Guney Guner; Ibrahim Ozkol; Gokhan Inalhan

doi:10.1016/j.jairtraman.2016.02.005

Towards a secure trading of aviation CO₂ allowance

Massimiliano Zanin^*, Tuba Toru Delibasi, Julio César Triana, Vaishali Mirchandani, Emilio Álvarez Pereira, Alberto Enrich, David Perez, Cengiz Paşaoğlu, Melih Fidanoglu, Emre Koyuncu, Guney Guner, Ibrahim Ozkol, Gokhan Inalhan

^*Corresponding author for this work

Department of Aeronautical Engineering

Research output: Contribution to journal › Article › peer-review

14 Citations (Scopus)

Abstract

The growth of world air traffic has been accompanied by a significant increase of its environmental impact, including CO₂ emissions, which has forced the European Union to include aviation in its Emission Trading Scheme (EU ETS). The EU ETS is a market-based mechanism that obliges airlines to buy or sell carbon permits, thus forcing them to share confidential information with their competitors in an auction-based market. Disclosure of confidential information will be one of the main barriers for the ETS adoption. In this contribution we describe the design and implementation of a Secure Multi-party Computation framework, capable of overcoming these barriers. The framework runs as an online, cloud-based computational service for performing CO₂ trading securely without the need of sharing business information. Benefits and limitations of the proposed approach are discussed, as well as the challenges to be overcome towards an operational implementation.

Original language	English
Pages (from-to)	3-11
Number of pages	9
Journal	Journal of Air Transport Management
Volume	56
Issue number	Part A
DOIs	https://doi.org/10.1016/j.jairtraman.2016.02.005
Publication status	Published - 1 Sept 2016

Bibliographical note

Publisher Copyright:
© 2016 Elsevier Ltd

Keywords

CO allowance trading
Market auctions
Secure Multi-party Computation

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1016/j.jairtraman.2016.02.005

Cite this

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title = "Towards a secure trading of aviation CO2 allowance",

abstract = "The growth of world air traffic has been accompanied by a significant increase of its environmental impact, including CO2 emissions, which has forced the European Union to include aviation in its Emission Trading Scheme (EU ETS). The EU ETS is a market-based mechanism that obliges airlines to buy or sell carbon permits, thus forcing them to share confidential information with their competitors in an auction-based market. Disclosure of confidential information will be one of the main barriers for the ETS adoption. In this contribution we describe the design and implementation of a Secure Multi-party Computation framework, capable of overcoming these barriers. The framework runs as an online, cloud-based computational service for performing CO2 trading securely without the need of sharing business information. Benefits and limitations of the proposed approach are discussed, as well as the challenges to be overcome towards an operational implementation.",

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T1 - Towards a secure trading of aviation CO2 allowance

AU - Zanin, Massimiliano

AU - Delibasi, Tuba Toru

AU - Triana, Julio César

AU - Mirchandani, Vaishali

AU - Álvarez Pereira, Emilio

AU - Enrich, Alberto

AU - Perez, David

AU - Paşaoğlu, Cengiz

AU - Fidanoglu, Melih

AU - Koyuncu, Emre

AU - Guner, Guney

AU - Ozkol, Ibrahim

AU - Inalhan, Gokhan

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AB - The growth of world air traffic has been accompanied by a significant increase of its environmental impact, including CO2 emissions, which has forced the European Union to include aviation in its Emission Trading Scheme (EU ETS). The EU ETS is a market-based mechanism that obliges airlines to buy or sell carbon permits, thus forcing them to share confidential information with their competitors in an auction-based market. Disclosure of confidential information will be one of the main barriers for the ETS adoption. In this contribution we describe the design and implementation of a Secure Multi-party Computation framework, capable of overcoming these barriers. The framework runs as an online, cloud-based computational service for performing CO2 trading securely without the need of sharing business information. Benefits and limitations of the proposed approach are discussed, as well as the challenges to be overcome towards an operational implementation.

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KW - Market auctions

KW - Secure Multi-party Computation

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