Congestion Pricing of Canadian Airports
Joseph I. Daniel
University of Delaware - Economics
February 7, 2011
Canadian Journal of Economics/Revue canadienne d'conomique, Vol. 44, Issue 1, pp. 290-324, 2011
Under congestion pricing, Canadian airports would annually save between $72 and $105 million. Social costs per landing and takeoff decrease about $300 at Toronto and Vancouver and $50 at Calgary and Montreal. Slot constraints fail to eliminate this airport congestion. Congestion prices are lower on average than existing weight-based prices. Current airport capacity accommodates at least five more years of traffic growth before congestion reaches current levels. Substantial welfare gains occur even if dominant airlines already internalize their self-imposed delays. This article calculates equilibrium congestion pricing schedules, traffic rates, queuing delays, layover times, and connection times by time of day.
Number of Pages in PDF File: 35
JEL Classification: R4, H2Accepted Paper Series
Date posted: March 14, 2011
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