Ramsey pricing including CO2 emission cost: An application to Spanish airports

Ramsey pricing including CO2 emission cost: An application to Spanish airports

Journal: Air Transport Management

Author: Roberto Rendeiro Martı´n-Cejas

Published: 2010

Abstract

The long-term growth in the air transport is leading to the need to expand airport infrastructure but this has serious environmental implications. Thus, there is the need to establish an alternative to the traditional airport pricing structure for landing fees, which reflects the overall costs that air transport operators impose on others. Airport pricing should provide a sound guide for future investments, and at the same time reflect whether additional facilities are needed and at what price, by taking into account all costs, including environmental costs. This paper analyses one application of Ramsey Pricing on uncongested Spanish airport, by considering the CO2 emission costs as a valuable input.

Keywords: Airport ,Carbon dioxide emissions ,Landing fees ,Environmental costs

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