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

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  • Chu, Ziyan
  • Zhou, Yichen Christy

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.

Suggested Citation

  • Chu, Ziyan & Zhou, Yichen Christy, 2023. "The effect of adopting the Next Generation Air Transportation System (NextGen) on air travel performance," Regional Science and Urban Economics, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:regeco:v:102:y:2023:i:c:s0166046223000534
    DOI: 10.1016/j.regsciurbeco.2023.103918
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    More about this item

    Keywords

    Air transportation; Transportation infrastructure; Air travel time and delay; Private benefits of infrastructure improvement;
    All these keywords.

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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