Consumer surplus analysis of selected long-haul air transport routes connecting Germany with California and China

Richard Klophaus and Tobias Grosche

Research in Transportation Economics, 2020, vol. 80, issue C

Abstract: Measuring the impact of air transport on economic welfare is relevant for many policy decisions but also subject to controversial discussions among researchers. We propose the use of price elasticity estimates together with empirical data on passenger volumes and fare levels to derive air travel demand functions. The demand functions then allow a measurement of consumer surplus of passengers as a key economic benefit of air transport. More specifically, by using segment-specific market data on passenger volumes, fare levels and aggregated own-price elasticities, we calculate revenues and consumer surplus associated with directional nonstop origin-destination traffic on selected long-haul routes from and to Germany's largest airport Frankfurt.

Keywords: Air transport; Wider economic benefits; Consumer surplus analysis (search for similar items in EconPapers)
JEL-codes: D11 L93 R40 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0739885919303129
Full text for ScienceDirect subscribers only

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:eee:retrec:v:80:y:2020:i:c:s0739885919303129

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_2&version=01

DOI: 10.1016/j.retrec.2019.100793

Access Statistics for this article

Research in Transportation Economics is currently edited by M. Dresner

More articles in Research in Transportation Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().