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Short‐run impact of the flight departure tax on air travel
Author(s) -
Falk Martin,
Hagsten Eva
Publication year - 2018
Publication title -
international journal of tourism research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.155
H-Index - 58
eISSN - 1522-1970
pISSN - 1099-2340
DOI - 10.1002/jtr.2239
Subject(s) - air travel , air transport , economics , business , aeronautics , aviation , engineering , aerospace engineering
Abstract This study investigates the short‐run impact of the flight departure tax introduced in Germany and Austria in 2011 on the number of flight passengers. The analysis covers 310 airports in 30 European countries for the period 2008–2016. Dynamic panel difference‐in‐differences estimations show that the flight tax reduces the number of passengers by 9% in the year of introduction and 5% in the subsequent year. However, separate estimations for airports predominantly frequented by low‐cost airlines reveal that the reduction of the number of passengers is mainly driven by these airports, whereas the regular hubs are not affected.