Another Look at Airport Congestion Pricing | Zendy

Steven A. Morrison | Zendy; Clifford Winston | Zendy

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Another Look at Airport Congestion Pricing

Author(s) -

Steven A. Morrison,

Clifford Winston

Publication year - 2007

Publication title -

american economic review

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 16.936

H-Index - 297

eISSN - 1944-7981

pISSN - 0002-8282

DOI - 10.1257/aer.97.5.1970

Subject(s) - toll , congestion pricing , economics , work (physics) , microeconomics , singapore area licensing scheme , industrial organization , business , traffic congestion , transport engineering , engineering , mechanical engineering , genetics , biology

We study alternate approaches to implement congestion pricing at US airports. Conventional formulations toll all aircraft without determining whether a plane operated by a given airline delays other planes that it operates or planes operated by other airlines. Recent work points out optimal pricing calls for carriers to be charged only for the delay they impose on other airlines. We find a small difference between the net benefits generated by the two congestion-pricing policies because the bulk of airport delays are not internalized and because the efficiency loss from pricing internalized congestion is small. (JEL L11, L93, R41)

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