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Air accessibility and growth – The economic effects of a capacity expansion at Vienna International Airport

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  • Sellner, Richard
  • Nagl, Philipp

Abstract

We use an econometric endogenous growth model to estimate the impact of air accessibility on GDP and investment growth. This is done in a dynamic panel system estimation framework for the EU-15 between 1993 and 2006. The results are then used to predict the economic effects of an increase in capacity at the Vienna International Airport using actual forecasts of the required information set. We find a GDP elasticity of air accessibility of 0.014 and an investment elasticity of 0.05 for our sample. Given the official passenger forecast this would lead to additional GDP growth in Austria of accumulated 0.81% based on the values of the restricted scenario (no third runway). In a more conservative forecast scenario of 3% annual passenger growth, a third runway is projected to increase GDP by 0.2% by 2040.

Suggested Citation

  • Sellner, Richard & Nagl, Philipp, 2010. "Air accessibility and growth – The economic effects of a capacity expansion at Vienna International Airport," Journal of Air Transport Management, Elsevier, vol. 16(6), pages 325-329.
    • Handle: RePEc:eee:jaitra:v:16:y:2010:i:6:p:325-329
    DOI: 10.1016/j.jairtraman.2010.04.003
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    1. Malighetti, Paolo & Paleari, Stefano & Redondi, Renato, 2008. "Connectivity of the European airport network: “Self-help hubbing†and business implications," Journal of Air Transport Management, Elsevier, vol. 14(2), pages 53-65.
    2. F Bruinsma & P Rietveld, 1998. "The Accessibility of European Cities: Theoretical Framework and Comparison of Approaches," Environment and Planning A, , vol. 30(3), pages 499-521, March.
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    7. Renato Redondi & Mariasole Bannò & Marco Mutinelli, 2011. "Air Connectivity and Foreign Direct Investments The economic effects of the introduction of new routes," ERSA conference papers ersa11p249, European Regional Science Association.
    8. Ramos-Pérez, David, 2016. "State aid to airlines in Spain: An assessment of regional and local government support from 1996 to 2014," Transport Policy, Elsevier, vol. 49(C), pages 137-147.
    9. Markham, Francis & Young, Martin & Reis, Arianne & Higham, James, 2018. "Does carbon pricing reduce air travel? Evidence from the Australian ‘Clean Energy Future’ policy, July 2012 to June 2014," Journal of Transport Geography, Elsevier, vol. 70(C), pages 206-214.
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    12. Bulatovic, Iva & Papatheodorou, Andreas, 2023. "Civil aviation and tourism demand in Montenegro: A panel data approach," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 9(1), pages 25-36.
    13. Gong, Zhenwei & Zhang, Fangni & Liu, Wei & Graham, Daniel J., 2023. "On the effects of airport capacity expansion under responsive airlines and elastic passenger demand," Transportation Research Part B: Methodological, Elsevier, vol. 170(C), pages 48-76.
    14. Beifert, Anatoli & Prause, Gunnar & Gerlitz, Laima, 2015. "Sustainable Business Development Models for Regional Airports," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Innovations and Strategies for Logistics and Supply Chains: Technologies, Business Models and Risk Management. Proceedings of the Hamburg Internationa, volume 20, pages 256-284, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
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    17. Yang Bai & Cheng-Lung Wu, 2022. "The Causality Analysis of Airports and Regional Economy: Empirical Evidence from Jiangsu Province in China," Sustainability, MDPI, vol. 14(7), pages 1-11, April.

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    More about this item

    Keywords

    Air accessibility elasticities; Econometric estimation; Airport capacity expansion; Vienna;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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