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Do maritime passengers’ subsidies in Europe affect prices?

Author

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  • Juan Luis Jiménez
  • Jorge Valido
  • Naykel Morán

Abstract

Some European governments subsidize their residents when they travel at sea. This paper seeks to analyze the impact on prices of maritime passengers’ subsidies in Europe. Following a review of the scarce academic literature on this topic and the subsidy scheme in Europe, a sample of firms’ prices and other characteristics of 40 European routes for 2016 are analyzed. Both an estimation of a price equation and a matching approach are applied and reach the same conclusion: prices per kilometer are around 40 per cent higher on those subsidized routes due to subsidies. This outcome reduces the potential subsidy gain to consumers.

Suggested Citation

  • Juan Luis Jiménez & Jorge Valido & Naykel Morán, 2018. "Do maritime passengers’ subsidies in Europe affect prices?," Maritime Policy & Management, Taylor & Francis Journals, vol. 45(7), pages 911-923, October.
    • Handle: RePEc:taf:marpmg:v:45:y:2018:i:7:p:911-923
    DOI: 10.1080/03088839.2018.1441558
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    Cited by:

    1. à lvarez-Albelo, Carmen D. & Hernández-Martín, Raúl & Padrón-Fumero, Noemi, 2020. "The effects on tourism of airfare subsidies for residents: The key role of packaging strategies," Journal of Air Transport Management, Elsevier, vol. 84(C).
    2. Sofiyandi, Yusuf & Kurniawan, Yusuf Reza & Yudhistira, Muhammad Halley, 2023. "The impact of maritime logistics subsidy on food prices: Evidence from Indonesia," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 1026-1045.

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