Arbeitspapier

How Do Airlines Cut Fuel Usage, Reducing Their Carbon Emissions?

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.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 10478

Classification
Wirtschaft
Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
Air Transportation
Subject
airlines
fuel
climate change
carbon emissions

Event
Geistige Schöpfung
(who)
Brueckner, Jan K.
Kahn, Matthew E.
Nickelsburg, Jerry
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2023

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Brueckner, Jan K.
  • Kahn, Matthew E.
  • Nickelsburg, Jerry
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2023

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