Distributional Consequences of Airport Congestion Pricing

Joseph I. Daniel

University of Delaware - Economics


University of Delaware Economics WP No. 98-03

This paper investigates the distributional impact of airport congestion pricing on commercial, commuter, miscellaneous, and general aviation. It extends Daniel's (1995) stochastic bottleneck model in three significant directions by allowing for non-homogeneous aircraft operating and time costs, differentiation in preferred times of operation, and elastic demand. The model also includes endogenous, intertemporal traffic adjustments in response to queuing delay and fees. The relative costs of queuing and schedule delays are estimated using data from Minneapolis-St. Paul airport. Simulations show equilibrium traffic patterns, queuing delays, schedule delays, congestion fees, airport revenues, and changes in surplus for each category of aviation.

JEL Classification: L93

working papers series

Not Available For Download

Date posted: July 10, 1998  

Suggested Citation

Daniel, Joseph I., Distributional Consequences of Airport Congestion Pricing (1998). University of Delaware Economics WP No. 98-03. Available at SSRN: http://ssrn.com/abstract=106668

Contact Information

Joseph I. Daniel (Contact Author)
University of Delaware - Economics ( email )
Newark, DE 19716
United States
302- 831-1913 (Phone)
302-831-6968 (Fax)
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