American Economic Review Vol. 97 No. 5 2007

Another Look at Airport Congestion Pricing

Steven A. Morrison¹; Clifford Winston²

¹ Department of Economics, Northeastern University, Boston, MA 02115. · ² Economic Studies Program, Brookings Institution, 1775 Massachusetts Avenue, NW, Washington, DC 20036.

Abstract

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.

DOI

10.1257/aer.97.5.1970

Volume

97

Issue

5

Pages

1970-1977

Language

en

Sources

openalex bibtex:phds-export.bib crossref

Cite

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