The effect of adopting the Next Generation Air Transportation System (NextGen) on air travel performance

Ziyan Chu and Yichen Zhou

Regional Science and Urban Economics, 2023, vol. 102, issue C

Abstract: The US Federal Aviation Administration (FAA) has implemented a large-scale multi-year infrastructure program called the Next Generation Air Transportation System (NextGen) to improve air transportation efficiency. To assess its efficacy, we estimate how NextGen projects completed between 2014 and 2017 affected air travel time and delays using an event study approach. We find sizable time savings in air travel time and delays from implementing NextGen. The time savings are more substantial for flights that experience unexpected shocks, such as poor weather and prior delays. In contrast, while NextGen seemed to close the performance gap between the hub and non-hub carriers generated by market power, the effect was short-lived and quickly reversed. Although we also find some small social benefits from carbon emission reductions, we cannot rule out that aggregate carbon emissions may have increased due to a rebound effect.

Keywords: Air transportation; Transportation infrastructure; Air travel time and delay; Private benefits of infrastructure improvement (search for similar items in EconPapers)
JEL-codes: L93 O18 Q53 R4 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:102:y:2023:i:c:s0166046223000534

DOI: 10.1016/j.regsciurbeco.2023.103918

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