Airline emissions charges and airline networks

Weijun Liao and Chunan Wang

Journal of Air Transport Management, 2021, vol. 92, issue C

Abstract: Emissions charges are an effective tool to control aviation carbon dioxide emissions. This paper investigates how airline emissions charges affect a monopoly airline's network choice. By considering simultaneously fully-connected, hub-spoke and mixed networks, we find that the impact of emissions charges on airline network configuration depends crucially on some relevant parameters, for example, the marginal benefit of the reduction of schedule delays and the disutility of additional travel time of connecting flights. Welfare analysis shows a discontinuity in the network configuration from the social planner's perspective and an inefficiency related to the airline's choice on mixed network.

Keywords: Airline emissions charges; Airline network; Mixed network; Welfare analysis (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:92:y:2021:i:c:s0969699721000119

DOI: 10.1016/j.jairtraman.2021.102028

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