Oil Shocks and Air Travel Demand: Insights From Korea and Japan

Jungho Baek and Soojoong Nam

Australian Economic Papers, 2025, vol. 64, issue 4, 457-472

Abstract: This research explores the effects of various oil shocks—supply, aggregate demand, and oil‐specific demand—on the demand for air passenger and freight services in South Korea and Japan. Employing structural vector autoregressive (SVAR) and autoregressive distributed lag (ARDL) models, it analyzes data from 2000 to 2022. The findings indicate that different oil shocks, especially two types of demand shocks, substantially impact air travel demand in these countries. The study also points out the significant roles economic growth and exchange rates play. These outcomes highlight the critical need to integrate oil price dynamics into air travel demand models, considering the specific economic contexts of South Korea and Japan. The study concludes by offering policy recommendations to mitigate the impacts of oil price fluctuations on air travel, underscoring the need for adaptive strategies within the aviation industry to manage these changes effectively.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/1467-8454.70001

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: https://EconPapers.repec.org/RePEc:bla:ausecp:v:64:y:2025:i:4:p:457-472

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0004-900X

Access Statistics for this article

Australian Economic Papers is currently edited by Daniel Leonard

More articles in Australian Economic Papers from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().