Special interest groups and price-structure: An application to noise charging at Zurich Airport

Christos Evangelinos, Ronny Püschel and Hans-Martin Niemeier

Research in Transportation Economics, 2020, vol. 79, issue C

Abstract: In this paper we discuss the topic of noise related airport charges from the perspective of positive economic theory. We argue, that noise related airport charges reflect a political equilibrium, where decision makers will take into account both: The interests of airlines and the interests of the inhabitants at the vicinity of airports. The structure of noise charges at airports may thus include elements of symbolism and in many cases will fail to provide incentives for the use of less noisy aircraft. For this, we estimate a nested logit model for aircraft use for the case of Zurich Airport. Our findings show, that the probability for using a certain aircraft type does not change with the noise surcharge. This suggests that reasons for the existence of such charging schemes may only be found in the field of the political economy.

Keywords: Noise charges; Political economy; Aircraft choice; Price differentiation (search for similar items in EconPapers)
JEL-codes: D72 L92 L98 R48 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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DOI: 10.1016/j.retrec.2019.100762

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