The Asymmetric Effects of Income and Fuel Price on Air Transport Demand

نویسنده

  • Zia Wadud
چکیده

Forecasts of passenger demand are an important parameter for aviation planners. Air transport demand models typically assume a perfectly reversible impact of the demand drivers. However, there are reasons to believe that the impacts of some of the demand drivers such as fuel price or income on air transport demand may not be perfectly reversible. Two types of imperfect reversibility, namely asymmetry and hysteresis, are possible. Asymmetry refers to the differences in the demand impacts of a rising price or income from that of a falling price or income. Hysteresis refers to the dependence of the impacts of changing price or income on previous history, especially on previous maximum price or income. We use US time series data and decompose each of fuel price and income into three component series to develop an econometric model for air transport demand that is capable of capturing the potential imperfectly reversible relationships and test for the presence or absence of reversibility. We find statistical evidence of asymmetry and hysteresis に for both, prices and income に in air transport demand. Implications for policy and practice are then discussed.

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Imperfect reversibility of air transport demand: Effects of air fare, fuel prices and price transmission

There are recent evidence that air transport demand may not have a perfectly reversible relationship with income and jet fuel prices, as is assumed in most demand models. However, it is not known if the imperfectly reversible effects of jet fuel price are a result of asymmetries in the supply side, i.e. asymmetries in cost pass through from fuel prices to air fare, or of demand side behavioural...

متن کامل

Determination of Effective Travel Variables on Air Transport Demand with Using Structural Equation

Air transport system has always been involved in all aspects of life because of its high potential in transporting passengers and goods. In this research we surveys the effects of travel variables on demand of domestic air transport, and for gathering required information from passengers, a questionnaire was designed including 20 effective parameters on air transport demand with questions These...

متن کامل

THE EFFECTS OF CUTTING ENERGY CONSUMPTION SUBSIDIES ON INDUSTRIAL AIR POLLUTION IN IRAN

Air pollution is an example of a negative externality; it imposes harmful effects and costs on people other than polluterS. In controlling air pollution, efficiency argument implies that, there is a rolefor the government to play. Studies show that taxation of fuels can be a powerful indirect instrumentfor controlling air polluticn because of the association between fuels use and emissions. In ...

متن کامل

پیامد تعدیل قیمت بنزین و سوخت جت بر مصرف و هزینه تولید حمل‌ونقل جاده‌ای و هوایی

In recent years, Iran has increased energy prices somewhat, but because of the very low starting point they remain far below opportunity costs. In this paper we examine two broad issues: First, the estimated impact of the energy price (Gasoline and Jet Fuel) rises on producer prices entire the economy and transportation sub-sectors, and the second, the Estimated of gasoline and jet fuel elastic...

متن کامل

Effect of Ship Fuel Sulfur Reduction Law on Iranian Oil Price (IMO Law)

In recent decades, the increase of pollution from consumption of oil and petroleum products has led to development of many environmental laws. It is important for Iranian policy makers to be informed about the impact of such laws on oil prices, given the dependence of the country’s budget on oil revenues. Under a new International Maritime Organization regulation passed in mid-2016, ships are r...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2014