Work

How do airlines cut fuel usage, reducing their carbon emissions?

Year: 2024

Type: article

Abstract: Airline fuel consumption is costly for the firms and for society as well due to a climate-change externality. We study how fuel-price changes affect cost-minimizing choices by airlines that have implications for the extent of this externality. The airline industry’s capital stock can be easily inventoried as a set of long-lived, durable aircraft. This portfolio approach allows us to study the utilization and composition of the capital stock at a highly disaggregated level. Changes in airline operations directed toward conserving fuel can be an important path toward lower emissions.

Source: Economics of Transportation

DOI: 10.1016/j.ecotra.2024.100358

Authors: Jan K. Brueckner, Matthew E. Kahn, Jerry Nickelsburg

Institutions: University of California, Irvine, University of Southern California, University of California, Los Angeles

Language: English

Topic: Aviation Industry Analysis and Trends

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Climate action

Open Access status: hybrid

Estimated APC paid: $2,200