Work

Capital flight? Do airlines move fuel-efficient planes to high-fuel-tax routes?

Year: 2026

Type: article

Abstract: This paper shows that airlines operate fuel-efficient planes on routes with high fuel taxes. It builds on a large data-collection effort compiling information on fuel taxes at the airport level, which is used to generate route-level taxes for thousands of nonstop airline routes in the US. The paper extends previous work exploring the connection between fuel prices and airline operations, with a new focus on the taxation of inputs. The results are used to derive the local pollution benefits from a route-specific fuel-tax increase.

Source: Transportation Research Part A Policy and Practice

DOI: 10.1016/j.tra.2026.105338

Authors: David R. Agrawal, Jan K. Brueckner, Quinton White

Institutions: University of California, Irvine, United States Department of the Treasury

Language: English

Topic: Aviation Industry Analysis and Trends

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,270

OpenAlex ID: W7225423143

FWCI:

Cites: 23

Cited by:

Related to: 10