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The impact of the NAO index on European Airline Transit

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  • Jaume Rosselló Nadal

    ()
    (Centre de Recerca Econòmica (UIB · Sa Nostra))

Abstract

Climatic variability and a substantial fraction of the most recent temperature warming in the Northern Hemisphere can be accounted for by the North Atlantic Oscillation (NAO) index. The most pronounced anomalies have occurred since the winter of 1989, with significant implications on weather conditions in areas within the index's geographical scope. Because climate is one of the most important factors in explaining world movements by humans, in this paper, variability patterns between quarterly Revenue Passenger Kilometers (RPK), compiled by the European Airline Association, and the NAO index are investigated as a function of different time lags and diverse economic indicators, with the aim of evaluating the impact of NAO variability and trends that can be associated with the change in RPK since the nineties. Using a traditional international air travel demand model, it has been found that the dissociation of the NAO index into positive and negative fluctuations can be related to changes in different geographical RPK time series, once seasonal effects are removed. The results are consistent with the view that meteorological and climate conditions can act as both a pull and push factor.

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Bibliographic Info

Paper provided by Centre de Recerca Econòmica (UIB ·"Sa Nostra") in its series CRE Working Papers (Documents de treball del CRE) with number 2009/5.

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Length: 17 pages
Date of creation: 2009
Date of revision:
Publication status: Published in 'Documents de Treball CRE', 2009, pages 1-17
Handle: RePEc:pdm:wpaper:2009/5

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Web page: http://www.cre.sanostra.es

Related research

Keywords: NAO; tourism; travel; climate change; airline industry;

This paper has been announced in the following NEP Reports:

References

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  1. Peter C.B. Phillips, 1985. "Understanding Spurious Regressions in Econometrics," Cowles Foundation Discussion Papers 757, Cowles Foundation for Research in Economics, Yale University.
  2. Karen Mayor & Richard S.J. Tol, 2007. "The Impact of the UK Aviation Tax on Carbon Dioxide Emissions and Visitor Numbers," Papers WP187, Economic and Social Research Institute (ESRI).
  3. Roberto Roson & Alvaro Calzadilla & Francesco Pauli, 2006. "Climate Change and Extreme Events: An Assessment of Economic Implications," Working Papers 2006.44, Fondazione Eni Enrico Mattei.
  4. Richard S.J. Tol & Andrea Bigano & Jacqueline M. Hamilton, 2005. "The Impact of Climate on Holiday Destination Choice," Working Papers 2005.4, Fondazione Eni Enrico Mattei.
  5. Pizer, William A., 1999. "The optimal choice of climate change policy in the presence of uncertainty," Resource and Energy Economics, Elsevier, vol. 21(3-4), pages 255-287, August.
  6. Jacqueline M. Hamilton & David J. Maddison & Richard S.J. Tol, 2003. "Climate Change And International Tourism: A Simulation Study," Working Papers FNU-31, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2003.
  7. Jacqueline M. Hamilton & Richard S.J. Tol, 2006. "The Impact Of Climate Change On Tourism In Germany, The Uk And Ireland: A Simulation Study," Working Papers FNU-115, Research unit Sustainability and Global Change, Hamburg University, revised Aug 2006.
  8. Andrea Bigano & Alessandra Goria & Jacqueline Hamilton & Richard S.J. Tol, 2005. "The Effect of Climate Change and Extreme Weather Events on Tourism," Working Papers 2005.30, Fondazione Eni Enrico Mattei.
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