Airline emission charges: Effects on airfares, service quality, and aircraft design

This paper explores the effect of airline emissions charges on airfares, airline service quality, aircraft design features, and network structure, using a detailed and realistic theoretical model of competing duopoly airlines. These impacts are derived by analyzing the effects of an increase in the...

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Bibliographic Details
Published in:Transportation research. Part B: methodological 2010-09, Vol.44 (8), p.960-971
Main Authors: Brueckner, Jan K., Zhang, Anming
Format: Article
Language:English
Subjects:
Air transportation and traffic
Aircraft
Aircraft components
Aircraft design
Aircraft fuels
Airlines
Applied sciences
Commercial aircraft
Commercial planes
Emission
Emission charges
Emission charges Airlines Global warming
Exact sciences and technology
Global warming
Ground, air and sea transportation, marine construction
Optimization
Transportation
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Summary:This paper explores the effect of airline emissions charges on airfares, airline service quality, aircraft design features, and network structure, using a detailed and realistic theoretical model of competing duopoly airlines. These impacts are derived by analyzing the effects of an increase in the effective price of fuel, which is the path by which emissions charges will alter airline choices. The results show that emission charges will raise fares, reduce flight frequency, increase load factors, and raise aircraft fuel efficiency, while having no effect on aircraft size. Given that these adjustments occur in response to the treatment of an emissions externality that is currently unaddressed, they represent efficient changes that move society closer to a social optimum.
ISSN:0191-2615
1879-2367
DOI:10.1016/j.trb.2010.02.006