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Is There a Limit to Growth? Comparing the Environmental Cost of an Airport’s Operations with Its Economic Benefit

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  • Cherie Lu

    (Department of Aviation and Maritime Management, Chang Jung Christian University, Tainan City 71101, Taiwan)

Abstract

With the growing global awareness of the requirement for sustainable development, economic development is no longer the sole objective of business activities. The need to find a balance between environmental impacts and economic benefits is especially the case for airport operations in or around cities. This study measured the environmental costs and economic benefits and of an airport for a period of 10 years, using Taipei Songshan Airport for the empirical analysis, to examine whether the environmental costs could outweigh the economic benefits. Of all the environmental negative side effects, aircraft engine emissions and noise nuisance are considered the main sources of environmental impacts. The dose-response method and the hedonic price method, respectively, were used for estimating the social costs of these. Income generation from both direct and secondary employment is measured as economic benefits by applying the Garin-Lowry model, originally developed in 1966, for estimation of the employment multiplier. The results show that, in general, the operation of Taipei Songshan Airport brought more economic benefits than environmental costs. The sensitivity analysis of emissions and noise social cost parameters shows that the environmental costs might have exceeded the economic benefits in 2008 and 2009 in certain high emissions and noise social cost cases.

Suggested Citation

  • Cherie Lu, 2017. "Is There a Limit to Growth? Comparing the Environmental Cost of an Airport’s Operations with Its Economic Benefit," Economies, MDPI, vol. 5(4), pages 1-13, November.
    • Handle: RePEc:gam:jecomi:v:5:y:2017:i:4:p:44-:d:118735
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    References listed on IDEAS

    as
    1. Lu, Cherie, 2011. "The economic benefits and environmental costs of airport operations: Taiwan Taoyuan International Airport," Journal of Air Transport Management, Elsevier, vol. 17(6), pages 360-363.
    2. Pagoni, Ioanna & Psaraki-Kalouptsidi, Voula, 2016. "The impact of carbon emission fees on passenger demand and air fares: A game theoretic approach," Journal of Air Transport Management, Elsevier, vol. 55(C), pages 41-51.
    3. Myung†jin Jun & James E. Moore, 2002. "The Lowry Model Revisited: Incorporating a Multizonal Input†Output Model into an Urban Land Use Allocation Model," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 14(1), pages 2-17, March.
    4. Jean‐Michel Guldmann & Fahui Wang, 1998. "Population And Employment Density Functions Revisited: A Spatial Interaction Approach," Papers in Regional Science, Wiley Blackwell, vol. 77(2), pages 189-211, April.
    5. Postorino, Maria Nadia & Mantecchini, Luca, 2016. "A systematic approach to assess the effectiveness of airport noise mitigation strategies," Journal of Air Transport Management, Elsevier, vol. 50(C), pages 71-82.
    6. Cherie Lu & Peter Morrell, 2006. "Determination and Applications of Environmental Costs at Different Sized Airports – Aircraft Noise and Engine Emissions," Transportation, Springer, vol. 33(1), pages 45-61, January.
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    Cited by:

    1. Ahmed Eid & May Salah & Mahmoud Barakat & Matevz Obrecht, 2022. "Airport Sustainability Awareness: A Theoretical Framework," Sustainability, MDPI, vol. 14(19), pages 1-22, September.
    2. Manyama, Mkama Thomas & Hepelwa, Aloyce Shaban & Nahonyo, Cuthbert Leonard, 2021. "GIS Based Environmental Cost−Benefit Analysis of Built Environment at Dar es Salaam Coastline Metropolitan," African Journal of Economic Review, African Journal of Economic Review, vol. 9(2), April.

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