Environmental Costs and Liberalization in European Air Transport: A Welfare Economic Analysis

Introduction regulation and reform in aviation. Part 1 Evaluation of environmental externalities in air transport: airline regulation - economic motivation for regulation, regulatory reform in aviation, conclusion environmental costs of air transport - externalities, external effects of air transport, evaluating external effects, conclusion noise - survey methods, hedonic pricing, conclusion emissions - global damage - the greenhouse effect, local air pollution, conclusion environmental cost estimates for air transport - noise exposure, exposure to local air pollution, accident risk, environmental cost estimates, conclusion. Part 2 Regulatory reform in air transport markets: regulatory reform and frequency competition - a model of airline competition, monopoly, single departure competition, symmetric multi-departure competition, welfare and evaluation, conclusion frequency competition - simulation modelling - symmetric solutions, asymmetric frequency competition, conclusion airline liberalization in networks - the model a one-hub network, a two-hub network, conclusion regulatory reform in European airline markets - a theoretical model, the econometric model, estimation and results, evaluation, conclusion conclusion - summary, policy implications and future research appendix A - proof of the positive frequency effect appendix B - data and calibration appendix C - sign of the frequency-price derivatives appendix D -sign of airline 2's profit derivative.