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Special interest groups and price-structure: An application to noise charging at Zurich Airport

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  • Evangelinos, Christos
  • Püschel, Ronny
  • Niemeier, Hans-Martin

Abstract

In this paper we discuss the topic of noise related airport charges from the perspective of positive economic theory. We argue, that noise related airport charges reflect a political equilibrium, where decision makers will take into account both: The interests of airlines and the interests of the inhabitants at the vicinity of airports. The structure of noise charges at airports may thus include elements of symbolism and in many cases will fail to provide incentives for the use of less noisy aircraft. For this, we estimate a nested logit model for aircraft use for the case of Zurich Airport. Our findings show, that the probability for using a certain aircraft type does not change with the noise surcharge. This suggests that reasons for the existence of such charging schemes may only be found in the field of the political economy.

Suggested Citation

  • Evangelinos, Christos & Püschel, Ronny & Niemeier, Hans-Martin, 2020. "Special interest groups and price-structure: An application to noise charging at Zurich Airport," Research in Transportation Economics, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:retrec:v:79:y:2020:i:c:s0739885919302744
    DOI: 10.1016/j.retrec.2019.100762
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    More about this item

    Keywords

    Noise charges; Political economy; Aircraft choice; Price differentiation;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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