IDEAS home Printed from https://ideas.repec.org/a/eee/retrec/v79y2020ics0739885919302744.html
   My bibliography  Save this article

Special interest groups and price-structure: An application to noise charging at Zurich Airport

Author

Listed:
  • Evangelinos, Christos
  • Püschel, Ronny
  • Niemeier, Hans-Martin

Abstract

In this paper we discuss the topic of noise related airport charges from the perspective of positive economic theory. We argue, that noise related airport charges reflect a political equilibrium, where decision makers will take into account both: The interests of airlines and the interests of the inhabitants at the vicinity of airports. The structure of noise charges at airports may thus include elements of symbolism and in many cases will fail to provide incentives for the use of less noisy aircraft. For this, we estimate a nested logit model for aircraft use for the case of Zurich Airport. Our findings show, that the probability for using a certain aircraft type does not change with the noise surcharge. This suggests that reasons for the existence of such charging schemes may only be found in the field of the political economy.

Suggested Citation

  • Evangelinos, Christos & Püschel, Ronny & Niemeier, Hans-Martin, 2020. "Special interest groups and price-structure: An application to noise charging at Zurich Airport," Research in Transportation Economics, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:retrec:v:79:y:2020:i:c:s0739885919302744
    DOI: 10.1016/j.retrec.2019.100762
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0739885919302744
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.retrec.2019.100762?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Knockaert, Jasper & Evangelinos, Christos & Rietveld, Piet & Wieland, Bernhard, 2009. "Differentiated infrastructure charging: a comparison of theory and practise," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 43, pages 4-34.
    2. Grampella, Mattia & Lo, Pak Lam & Martini, Gianmaria & Scotti, Davide, 2017. "The impact of technology progress on aviation noise and emissions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 525-540.
    3. Brueckner, Jan K. & Girvin, Raquel, 2008. "Airport noise regulation, airline service quality, and social welfare," Transportation Research Part B: Methodological, Elsevier, vol. 42(1), pages 19-37, January.
    4. Starkie, David, 2012. "European airports and airlines: Evolving relationships and the regulatory implications," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 40-49.
    5. Raquel Girvin, 2010. "Aircraft Noise Regulation, Airline Service Quality, and Social Welfare: the Monopoly Case," Journal of Transport Economics and Policy, University of Bath, vol. 44(1), pages 17-35, January.
    6. D. Acemoglu & J. Robinson, 2013. "Economics versus politics: pitfalls of policy advice," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 12.
    7. Brueckner, Jan K. & Zhang, Anming, 2010. "Airline emission charges: Effects on airfares, service quality, and aircraft design," Transportation Research Part B: Methodological, Elsevier, vol. 44(8-9), pages 960-971, September.
    8. Theodore Keeler, 1984. "Theories of regulation and the deregulation movement," Public Choice, Springer, vol. 44(1), pages 103-145, January.
    9. Noll, Roger G., 1989. "Economic perspectives on the politics of regulation," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 22, pages 1253-1287, Elsevier.
    10. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, January.
    11. Laffont, Jean-Jacques, 2001. "Incentives and Political Economy," OUP Catalogue, Oxford University Press, number 9780199248681.
    12. Grampella, Mattia & Martini, Gianmaria & Scotti, Davide & Zambon, Giovanni, 2016. "The factors affecting pollution and noise environmental costs of the current aircraft fleet: An econometric analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 310-325.
    13. Girvin, Raquel, 2009. "Aircraft noise-abatement and mitigation strategies," Journal of Air Transport Management, Elsevier, vol. 15(1), pages 14-22.
    14. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, December.
    15. Swan, William M. & Adler, Nicole, 2006. "Aircraft trip cost parameters: A function of stage length and seat capacity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 42(2), pages 105-115, March.
    16. Marco Salvi, 2008. "Spatial Estimation of the Impact of Airport Noise on Residential Housing Prices," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 144(IV), pages 577-606, December.
    17. van Winden, Frans, 1999. "On the Economic Theory of Interest Groups: Towards a Group Frame of Reference in Political Economics," Public Choice, Springer, vol. 100(1-2), pages 1-29, July.
    18. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    19. Peltzman, Sam, 1976. "Toward a More General Theory of Regulation," Journal of Law and Economics, University of Chicago Press, vol. 19(2), pages 211-240, August.
    20. Hans-martin Niemeier, 2013. "Expanding Airport Capacity Under Constraints in Large Urban Areas: The German Experience," International Transport Forum Discussion Papers 2013/4, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cui, Qiang & Liu, Yujie & Zhao, Xinyue, 2024. "Aircraft-related noises increased but compensation decreased in Chinese airports," Journal of Air Transport Management, Elsevier, vol. 119(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Evangelinos, Christos, 2013. "Interessengruppen und Preissetzung im Verkehr," Discussion Papers 2/2013, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
    2. Eugenio J. Miravete & Katja Seim & Jeff Thurk, 2020. "One Markup to Rule Them All: Taxation by Liquor Pricing Regulation," American Economic Journal: Microeconomics, American Economic Association, vol. 12(1), pages 1-41, February.
    3. Schnellenbach, Jan & Schubert, Christian, 2015. "Behavioral political economy: A survey," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 395-417.
    4. Miravete, Eugenio & Seim, Katja & Thurk, Jeff, 2013. "Complexity, Efficiency, and Fairness of Multi-Product Monopoly Pricing," CEPR Discussion Papers 9641, C.E.P.R. Discussion Papers.
    5. Hiriart, Yolande & Martimort, David & Pouyet, Jerome, 2010. "The public management of risk: Separating ex ante and ex post monitors," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 1008-1019, December.
    6. Hansen, Mark & Liu, Yi, 2015. "Airline competition and market frequency: A comparison of the s-curve and schedule delay models," Transportation Research Part B: Methodological, Elsevier, vol. 78(C), pages 301-317.
    7. Jeff Thurk, 2015. "Measuring the Unequal Implications of One Size Fits All Regulation," 2015 Meeting Papers 1251, Society for Economic Dynamics.
    8. Brueckner, Jan K. & Zhang, Anming, 2010. "Airline emission charges: Effects on airfares, service quality, and aircraft design," Transportation Research Part B: Methodological, Elsevier, vol. 44(8-9), pages 960-971, September.
    9. Adler, Nicole & Martini, Gianmaria & Volta, Nicola, 2013. "Measuring the environmental efficiency of the global aviation fleet," Transportation Research Part B: Methodological, Elsevier, vol. 53(C), pages 82-100.
    10. Christos Evangelinos & Stefan Tscharaktschiew, 2021. "The Valuation of Aesthetic Preferences and Consequences for Urban Transport Infrastructures," Sustainability, MDPI, vol. 13(9), pages 1-17, April.
    11. Robert Hahn & Robert Metcalfe & Florian Rundhammer, 2020. "Promoting customer engagement: A new trend in utility regulation," Regulation & Governance, John Wiley & Sons, vol. 14(1), pages 121-149, January.
    12. David Parker & Colin Kirkpatrick, 2004. "Economic regulation in developing countries: a framework for critical analysis," Chapters, in: Paul Cook & Colin Kirkpatrick & Martin Minogue & David Parker (ed.), Leading Issues in Competition, Regulation and Development, chapter 4, Edward Elgar Publishing.
    13. J.A. den Hertog, 2010. "Review of economic theories of regulation," Working Papers 10-18, Utrecht School of Economics.
    14. Trojanek, Radoslaw & Huderek-Glapska, Sonia, 2018. "Measuring the noise cost of aviation – The association between the Limited Use Area around Warsaw Chopin Airport and property values," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 103-114.
    15. Galilea, Patricia & Medda, Francesca, 2010. "Does the political and economic context influence the success of a transport project? An analysis of transport public-private partnerships," Research in Transportation Economics, Elsevier, vol. 30(1), pages 102-109.
    16. Georges Dionne, 2003. "The Foundationsof Banks' Risk Regulation: A Review of Literature," THEMA Working Papers 2003-46, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    17. Guerriero, Carmine, 2006. "Dependent Controllers and Regulation Policies: Theory and Evidence," Privatisation Regulation Corporate Governance Working Papers 12204, Fondazione Eni Enrico Mattei (FEEM).
    18. Girma T. Kassie & Awudu Abdulai & Clemens Wollny, 2009. "Valuing Traits of Indigenous Cows in Central Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 386-401, June.
    19. Çetin, Tamer & Yasin Eryigit, Kadir, 2013. "The economic effects of government regulation: Evidence from the New York taxicab market," Transport Policy, Elsevier, vol. 25(C), pages 169-177.
    20. D’Alfonso, Tiziana & Jiang, Changmin & Bracaglia, Valentina, 2016. "Air transport and high-speed rail competition: Environmental implications and mitigation strategies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 261-276.

    More about this item

    Keywords

    Noise charges; Political economy; Aircraft choice; Price differentiation;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:retrec:v:79:y:2020:i:c:s0739885919302744. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620614/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.