vol.3, no.2, pp.1-11, 2023 (Peer-Reviewed Journal)
Development of air transport is important for trade, competitiveness, and growth of the
economies. For trade to be competitive, continued investment to improve air transport
infrastructure is necessary for meeting increasing demand for air cargo providing fast
deliveries of high value and time sensitive goods. While the development of air transport
and air cargo is beneficial for the economy, it has negative consequences on environment.
For environment to be sustainable, development of air transport and air cargo has an
important role to play. This study therefore aims to find out what effect the development
of air transport has on environmental sustainability and on this effect what role air cargo
plays. Based on the Baron & Kenny mediator analysis, cross country data set was tested
by multiple regression and Sobel test. The results show that the development of air
transport has a negative effect on environmental sustainability and on this effect air cargo
is a partial mediator. By introducing air cargo as a mediator in the relationship, the
negative effect of air transport development on environmental sustainability weakens but
its significance remains.