Spillover Effects of the Development Constraints in London Heathrow Airport

Spillover effects of the development constraints in London Heathrow Airport. Gudmundsson, Sveinn; Paleari, Stefano; Redondi, Renato. Journal of Transport Geography vol. 35 February, 2014. p. 64-74

46 Pages Posted: 18 Jan 2014 Last revised: 14 Jun 2014

See all articles by Sveinn Vidar Gudmundsson

Sveinn Vidar Gudmundsson

Toulouse Business School

Stefano Paleari

University of Bergamo - SIGE Sezione di Ingegneria Gestionale

Renato Redondi

University of Brescia - Department of Industrial Engineering

Date Written: January 16, 2014

Abstract

In this article we assess the growth impact of London Heathrow’s development constraints on other airports in the UK. To test the relationship we use a two-stage methodology yielding an estimate of a congestion spillover effect. Our data are passenger traffic from 1990 to 2012 containing both intercontinental and European air traffic. For intercontinental air traffic, our results show high congestion spillover effect between Heathrow and Gatwick airports, and significant but lesser effect to Stansted airport. We also find significant congestion spillover effects from Heathrow to the spatially more distant Manchester and Birmingham airports, showing the extensive spatial impact of Heathrow’s development constraints. For European air traffic, controlling for low-cost air carrier growth, only two airports show significant congestion spillover effects: Gatwick and London City Airports. Illustrating that low-cost carriers do not operate from Heathrow, so its limitations cannot affect the predominant low-cost air traffic in other airports. The novel methodology we present in this paper can be applied to congestion research in general to assess regional and modal spills within networks.

Keywords: Spillover effects, regional development, airport congestion, air transport, networks, transport, public policy, airport management, foresight

JEL Classification: R11, R12, R41, L98, L93, L91, L52, J68

Suggested Citation

Gudmundsson, Sveinn Vidar and Paleari, Stefano and Redondi, Renato, Spillover Effects of the Development Constraints in London Heathrow Airport (January 16, 2014). Spillover effects of the development constraints in London Heathrow Airport. Gudmundsson, Sveinn; Paleari, Stefano; Redondi, Renato. Journal of Transport Geography vol. 35 February, 2014. p. 64-74. Available at SSRN: https://ssrn.com/abstract=2380226 or http://dx.doi.org/10.2139/ssrn.2380226

Sveinn Vidar Gudmundsson (Contact Author)

Toulouse Business School ( email )

20, bd Lascrosses
Toulouse, 31068
France

HOME PAGE: http://www.tbs-education.fr

Stefano Paleari

University of Bergamo - SIGE Sezione di Ingegneria Gestionale ( email )

Via Marconi 5
24044 Dalmine, Bergamo
Italy
+39 03 520 52340 (Phone)
+39 03 556 2779 (Fax)

Renato Redondi

University of Brescia - Department of Industrial Engineering ( email )

Via Branze, 38
Brescia, 25123
Italy

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