NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

An Economic Analysis of U.S Airline Fuel Economy Dynamics from 1991 to 2015

Matthew E. Kahn, Jerry Nickelsburg

NBER Working Paper No. 22830
Issued in November 2016
NBER Program(s):Environment and Energy Economics, Industrial Organization

Airline transport generates a growing share of global greenhouse gas emissions but as of late 2016, this sector has not faced U.S. fuel economy or emissions regulation. At any point in time, airlines own and lease a set of durable vehicles and have invested in human and physical capital and an inventory of parts to maintain these vehicles. Each airline chooses whether to scrap and replace airplanes in their fleet and how to utilize and operate their fleet of aircraft. We model these choices as a function of real jet fuel prices. When jet fuel prices are higher, airlines fly fuel inefficient planes slower, scrap older fuel inefficient planes earlier and substitute miles flown to their more fuel efficient planes.

download in pdf format
   (283 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w22830

Users who downloaded this paper also downloaded* these:
Neuhierl and Weber w22831 Monetary Policy and the Stock Market: Time-Series Evidence
Weitzman w22813 On a World Climate Assembly and the Social Cost of Carbon
Lurkin, Garrow, Higgins, Newman, and Schyns w22730 Accounting for Price Endogeneity in Airline Itinerary Choice Models: An Application to Continental U.S. Markets
Davis and Knittel w22925 Are Fuel Economy Standards Regressive?
Gilchrist, Schoenle, Sim, and ZakrajŇ°ek w22827 Inflation Dynamics During the Financial Crisis
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us