Pricing the major hub airports
AbstractImplementing congestion pricing at twenty-seven major US airports would reduce delays by thirteen passenger-years and one thousand aircraft-hours every day, saving three to five million dollars. Chicago and Atlanta would save about one thousand dollars per aircraft. Airport revenues would increase about eleven million dollars daily. A bottleneck model with stochastic queues estimates substantial welfare gains whether or not airlines internalize self-imposed delays. Erroneously imposing fees from the non-internalizing specification on internalizing airlines, however, would be a costly mistake. The model calculates equilibrium traffic rates, queuing delays, layover times, connection times, and congestion fee schedules by minute of the day.
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Bibliographic InfoPaper provided by University of Delaware, Department of Economics in its series Working Papers with number 08-13.
Length: 36 pages
Date of creation: 2008
Date of revision:
Publication status: Published in Journal of Urban Economics.
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Web page: http://www.lerner.udel.edu/departments/economics/department-economics/
More information through EDIRC
airport congestion pricing; stochastic queuing; bottleneck model.;
Find related papers by JEL classification:
- R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Systems
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- L5 - Industrial Organization - - Regulation and Industrial Policy
- L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
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636, Queen's University, Department of Economics.
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"Manipulable Congestion Tolls,"
Tinbergen Institute Discussion Papers
09-009/3, Tinbergen Institute.
- Brueckner, Jan K., 2009. "Price vs. quantity-based approaches to airport congestion management," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 681-690, June.
- Jan K. Brueckner & Erik T. Verhoef, 2009. "Manipulable Congestion Tolls," Tinbergen Institute Discussion Papers 09-009/3, Tinbergen Institute.
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