Internalization of Airport Congestion: A Network Analysis
The likely resurgence of air traffic in the U.S. means that airport congestion is a problem that must soon be confronted by policy makers. As part of their policy response, it is probable that some form of congestion pricing will be imposed at selected U.S. airports in the relatively near future. The theory developed in this paper, which extends the results of Brueckner (2002), provides an important guide for the formulation of congestion pricing rules. In particular, the theory says that the congestion tolls levied on the various airlines at a particular airport should generally be different, with the tolls being inversely related to a carrier’s airport flight share. Internalization of airport congestion is the reason for this inverse relationship. In operating another peak flight, a carrier takes account of the congestion damage imposed on the other flights it operates. If these flights account for a large share of the airport’s traffic, then most of the congestion created by the additional flight is internalized, justifying a low toll. By contrast, if the carrier operates only a few of the airport’s flights, then little internalization occurs, and a high toll is needed to force the carrier to take into account the congestion damage it causes. The resulting flight-share rule is easy to implement, and it could help policymakers design proper toll systems at U.S. airports.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||2002|
|Date of revision:|
|Contact details of provider:|| Postal: Poschingerstrasse 5, 81679 Munich|
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Carlin, Alan & Park, Rolla Edward, 1970. "Marginal Cost Pricing of Airport Runway Capacity," American Economic Review, American Economic Association, vol. 60(3), pages 310-19, June.
- Daniel, Joseph I., 2001. "Distributional Consequences of Airport Congestion Pricing," Journal of Urban Economics, Elsevier, vol. 50(2), pages 230-258, September.
- Levine, Michael E, 1969. "Landing Fees and the Airport Congestion Problem," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 79-108, April.
- Eric Pels & Erik Verhoef, 2003.
"The Economics of Airport Congestion Pricing,"
Tinbergen Institute Discussion Papers
03-083/3, Tinbergen Institute.
- Daniel, Joseph I. & Pahwa, Munish, 2000. "Comparison of Three Empirical Models of Airport Congestion Pricing," Journal of Urban Economics, Elsevier, vol. 47(1), pages 1-38, January.
- Jan K. Brueckner, 2002. "Airport Congestion When Carriers Have Market Power," American Economic Review, American Economic Association, vol. 92(5), pages 1357-1375, December.
- Daniel, Joseph I, 1995. "Congestion Pricing and Capacity of Large Hub Airports: A Bottleneck Model with Stochastic Queues," Econometrica, Econometric Society, vol. 63(2), pages 327-70, March.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_756. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.