Pricing Canadian Airports

Joseph I. Daniel ()

No 09-02, Working Papers from University of Delaware, Department of Economics

Abstract: Congestion pricing of Canada’s four largest airports would save between seventy-two and one-hundred-five million dollars annually. Social cost of each aircraft movement would decrease by several hundred dollars at Toronto and Vancouver, and by about fifty dollars at Calgary and Montreal. Toronto currently experiences this congestion in spite of its slot control system. Congestion fees would be less than current weight-based landing fees on average. At projected traffic growth rates, social costs of landings and takeoffs would remain below current levels for at least five years—postponing the need for additional capacity. A stochastic bottleneck model indicates these substantial welfare gains regardless of whether dominant airlines internalize their self-imposed delays. This paper reports equilibrium congestion fee schedules by time of day and calculates equilibrium traffic rates, queuing delays, layover times, and connection times.

Keywords: airport congestion pricing; stochastic queuing; bottleneck model; slot constraints. (search for similar items in EconPapers)
JEL-codes: R4 H2 L5 L9 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo and nep-ure
Date: 2009
View list of references

Downloads: (external link)
http://www.lerner.udel.edu/sites/default/files/imc ... 2009/UDWP2009-02.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:dlw:wpaper:09-02.

Access Statistics for this paper

More papers in Working Papers from University of Delaware, Department of Economics
Contact information at EDIRC.
Series data maintained by Saul Hoffman ().