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Marginal costs pricing of airport operations in Norway

Author

Listed:
  • Mathisen, T.A.
  • Jørgensen, F.
  • Solvoll, G.

Abstract

The article first reviews the charge scheme used to finance the airport infrastructure in Norway. Then an econometric approach is taken using empirical data for production and costs from 2007 to 2009 in order to derive long-run marginal costs for passengers and air traffic movements at Norwegian airports using panel data analysis. The marginal costs are then applied as the basis for a revised airport charge scheme designed to meet the principle of maximizing social benefits. The results suggest that there should be a shift towards a relatively higher charge for passengers compared to air traffic movements.

Suggested Citation

  • Mathisen, T.A. & Jørgensen, F. & Solvoll, G., 2014. "Marginal costs pricing of airport operations in Norway," Research in Transportation Economics, Elsevier, vol. 45(C), pages 49-56.
    • Handle: RePEc:eee:retrec:v:45:y:2014:i:c:p:49-56
    DOI: 10.1016/j.retrec.2014.07.007
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    References listed on IDEAS

    as
    1. Lian, Jon Inge, 2010. "Network dependency and airline competition – Consequences for remote areas in Norway," Journal of Air Transport Management, Elsevier, vol. 16(3), pages 137-143.
    2. Martín, Juan Carlos & Román, Concepción & Voltes-Dorta, Augusto, 2011. "Scale economies and marginal costs in Spanish airports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(2), pages 238-248, March.
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    5. Jose Manuel Sanchez Losada & Javier Caamano Eraso & Pilar Davila Garcia, 2012. "Airport Management: The Survival Of Small Airports," Articles, International Journal of Transport Economics, vol. 39(3).
    6. Santos, Georgina & Robin, Maël, 2010. "Determinants of delays at European airports," Transportation Research Part B: Methodological, Elsevier, vol. 44(3), pages 392-403, March.
    7. Link, Heike & Götze, Wolfgang & Himanen, Veli, 2009. "Estimating the marginal costs of airport operation using multivariate time series models with correlated error terms," Journal of Air Transport Management, Elsevier, vol. 15(1), pages 41-46.
    8. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2003. "Inefficiencies and scale economies of European airport operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(5), pages 341-361, September.
    9. Martín, Juan Carlos & Voltes-Dorta, Augusto, 2011. "The econometric estimation of airports' cost function," Transportation Research Part B: Methodological, Elsevier, vol. 45(1), pages 112-127, January.
    10. Martín-Cejas, Roberto Rendeiro, 1997. "Airport pricing systems in europe and an application of Ramsey pricing to Spanish airports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(4), pages 321-327, December.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Núñez-Sánchez, Ramón & Hidalgo-Gallego, Soraya & Martínez-San Román, Valeriano, 2020. "Airport charges and marginal costs for Spanish airports before the process of partial privatization," Transport Policy, Elsevier, vol. 99(C), pages 240-250.
    2. Saremi, Maryam & Fallahi, Firouz & Pels, Eric & Salmani, Behzad & Covich, Mohsen Pourebadollahan, 2021. "Ramsey pricing of aircraft landing fees: A case study of Iranian airports," Research in Transportation Economics, Elsevier, vol. 90(C).

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    More about this item

    Keywords

    Airport cost; Panel data analysis; Passengers; Air traffic movements; Marginal cost pricing; Ramsey pricing;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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