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Manufacturers, Research and Infrastructure

Friedrich Thießen ()
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Friedrich Thießen: TU Chemnitz

Chapter Chapter 5 in Air Transport and its Subsidies, 2022, pp 71-77 from Springer

Abstract: Abstract Subsidizing aircraft manufacturers has become established in industrialized countries. Air transport research is also subsidized in many industrialized countries. The subsidized research ranges from basic research to the functional prototype that only needs to be reproduced. Between research funding and the use of (environmental) research results in practice, there is a regulatory gap because there are hardly any incentives to actually use research results. Airports need extensive infrastructure because of their location away from urban areas. The OECD warns industrialized countries against too much non-amortizable, nevertheless maintenance-causing infrastructure. Infrastructure should be able to be amortized by the polluters, which is often not the case with regional airports. The amount of non-successful amortization of infrastructure costs represents a subsidy to the air transport industry.

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-658-38899-7_5

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DOI: 10.1007/978-3-658-38899-7_5

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