Airline Emission Charges: Effects on Airfares, Service Quality, and Aircraft Design

Jan Brueckner and Anming Zhang ()
Additional contact information
Anming Zhang: Department of Spacial Economics, VU University, Amsterdam

No 80916, Working Papers from University of California-Irvine, Department of Economics

Abstract: This paper explores the effect of airline emissions charges on airfares, airline service quality, aircraft design features, and network structure, using a detailed and realistic theoretical model of competing duopoly airlines. These impacts are derived by analyzing the effects of an increase in the effective price of fuel, which is the path by which emissions charges will alter airline choices. The results show that emission charges will raise fares, reduce flight frequency, increase load factors, and raise aircraft fuel efficiency, while having no effect on aircraft size. Given that these adjustments occur in response to the treatment of an emissions externality that is currently unaddressed, they represent efficient changes that move society closer to a social optimum.

Keywords: Emissions; Global warming; Airlines (search for similar items in EconPapers)
JEL-codes: H23 L9 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2009-01
New Economics Papers: this item is included in nep-ene and nep-env
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Citations: View citations in EconPapers (2)

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https://www.economics.uci.edu/files/docs/workingpapers/2008-09/brueckner-16.pdf (application/pdf)

Related works:
Journal Article: Airline emission charges: Effects on airfares, service quality, and aircraft design (2010)
Working Paper: Airline Emission Charges: Effects on Airfares, Service Quality, and Aircraft Design (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:irv:wpaper:080916

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