Role of Air Travel Demand Elasticities in Reducing Aviation's Carbon Dioxide Emissions

Autor:	Daniel J. Graham, Washington Y. Ochieng, Patricia C. Melo, Arnab Majumdar, Jarlath Molloy
Rok vydání:	2012
Předmět:	Demand management Short run Natural resource economics Aviation business.industry Mechanical Engineering Civil aviation Microeconomics chemistry.chemical_compound chemistry Dynamic demand Carbon dioxide Economics Elasticity (economics) business Civil and Structural Engineering Air travel
Zdroj:	Transportation Research Record: Journal of the Transportation Research Board. 2300:31-41
ISSN:	2169-4052 0361-1981
DOI:	10.3141/2300-04
Popis:	This paper develops a new set of European air travel demand elasticities with data from the International Civil Aviation Organization; a new database was constructed in the context of examining the role for dynamic demand management in reducing aviation carbon dioxide (CO2) emissions. The results indicate that air travel demand appears to be fairly price inelastic, with a fare elasticity of 20.29% in the short run and 20.44% in the long run. As a result, demand management strategies focused solely on increasing air fares may do little to curb demand growth. In contrast, supply restrictions in the form of reduced service frequencies may offer a more effective means of reducing aviation CO2 emissions—a 10% reduction in frequency levels is found to reduce passenger demand by 5% in the short run and 7.6% in the long run—although such restrictions can create negative economic consequences. A combination of supply restrictions and pricing may offer a more balanced solution.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::dc800673ff7fa2ff6ea7f04d71b826ea https://doi.org/10.3141/2300-04 Zobrazit plný text záznamu