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Regulation in the Air: Price and Frequency Cap

Despite deregulation on the air-transportation markets, many connections are still operated by a single operator. Regulation is thus a central issue in this industry. There is however a great concern for the (possibly negative) consequences of price regulation on the quality of services. We argue that both aspects should be considered jointly and propose a mechanism that allow to decentralize the optimal structure of services in this industry. The regulatory procedure is robust to the introduction of heterogeneity in the travellers' valuation of the connections' frequency.

deVillemeur, Etienne Billette↗

The Conference Proceedings of the 2003 Air Transport Research Society (ATRS) World Conference, Volume 5

The UNO Aviation Institute Monograph Series began in 1994 as a key component of the education outreach and information transfer missions of the Aviation Institute and the NASA Nebraska Space Grant & EPSCoR Programs. The series is an outlet for aviation materials to be indexed and disseminated through an efficient medium. Publications are welcome in all aspects of aviation. Publication formats may include, but are not limited to, conference proceedings, bibliographies, research reports, manuals, technical reports, and other documents that should be archived and indexed for future reference by the aviation and world wide communities. The Conference proceedings of the 2003 Air Transport Research Society (ATRS) world conference, volume 5 is presented. The topics include: 1) The Temporal Configuration of Airline Networks in Europe; 2) Determination and Applications of Environmental Costs at Different Sized Airports-Aircraft Noise and Engine Emissions; 3) Cost Effective Measures to Reduce CO2 Emissions in the Air Freight Sector; 4) An Assessment of the Sustainability of Air Transport System: Quantification of Indicators; 5) Regulation, Competition and Network Evolution in Aviation; 6) Regulation in the Air: Price and Frequency Cap; 7) Industry Consolidation and Future Airline Network Structures in Europe; 8) Application of Core Theory to the U.S. Airline Industry; 9) Air Freight Transshipment Route Choice Analysis; 10) A Fuzzy Approach of the Competition on Air Transport Market; and 11) Developing Passenger Demand Models for International Aviation from/to Egypt: A Case Study of Cairo Airport and Egyptair.

Bowen, Brent↗

The Conference Proceedings of the 1999 Air Transport Research Group (ATRG) of the WCTR Society

In this paper, we develop a model with which allows us to measure not only the changes in equilibrium outcomes and welfare consequences of liberalizing a bilateral air transport agreement, but also the distribution of the gains and losses to carriers and consumers of each bilateral country and those of the third foreign countries. Our model also allows to measure the effects of changes in a bilateral agreement on the amount of traffic diversion between the direct bilateral routes and the indirect routes via a third country. We also provide an extension of our model to a case of oligopoly market outcome (Coumot Nash equilibrium). In our model, quality aspects are treated in the framework of hedonic price theory by specifying the quality-adjusted price (quantity) as a multiplication of the observed price (quantity) by the reciprocal quality index function (the quality index function). Numerical simulations were conducted to measure the effects of changing the following major policy levers in a bilateral air transport agreement: 1) Removing price regulation while retaining frequency and entry restrictions; 2) Removing price and entry regulation while retaining frequency restrictions; 3) Removing frequency regulations while retaining price and entry regulations; 4) Removing frequency and entry regulations while retaining price regulation; 5) Removing price and frequency regulations while retaining entry restriction; and 6) Removing all price, frequency and entry regulations (de facto, open skies).

Zhang, Anming↗

Potential Impact of a US Climate Policy and Air Quality Regulations on Future Air Quality and Climate Change

We have investigated how future air quality and climate change are influenced by the US air quality regulations that existed or were proposed in 2013 and a hypothetical climate mitigation policy that aims to reduce 2050 CO2 emissions to be 50% below 2005 emissions. Using the NASA GISS ModelE2 general circulation model, we look at the impacts for year 2030 and 2055. The US energy-sector emissions are from the GLIMPSE project (GEOS-Chem LIDORT Integrated with MARKAL (MARKet ALlocation) for the Purpose of Scenario Exploration), and other US emissions data sets and the rest of the world emissions data sets are based on the RCP4.5 scenario. The US air quality regulations are projected to have a strong beneficial impact on US air quality and public health in year 2030 and 2055 but result in positive radiative forcing. Under this scenario, no more emission constraints are added after 2020, and the impacts on air quality and climate change are similar between year 2030 and 2055. Surface particulate matter with a diameter smaller than 2.5 micron PM(sub 2:5) is reduced by 2 approximately μg/m(sup -3) on average over the USA, and surface ozone by approximately 8 ppbv. The improved air quality prevents about 91 400 premature deaths in the USA, mainly due to the PM(sub 2:5) reduction approximately (74 200 lives saved). The air quality regulations reduce the light-reflecting aerosols (i.e., sulfate and organic matter) more than the light-absorbing species (i.e., black carbon and ozone), leading to a strong positive radiative forcing (RF) over the USA by both aerosols' direct and indirect forcing: the total RF is approximately 0.04 W m(sup -2) over the globe, and approximately 0.8 W m(sup -2) over the USA. Under the hypothetical climate policy, a future CO2 emissions cut is achieved in part by relying less on coal, and thus SO2 emissions are noticeably reduced. This provides air quality co-benefits, but it could lead to potential climate disbenefits over the USA. In 2055, the US mean total RF is +C02 W m(sup -2) due to positive aerosol direct and indirect forcing, while the global mean total RF is -0.06 W m(sup -2) due to the dominant negative CO2 RF (instantaneous RF). To achieve a regional-scale climate benefit via a climate policy, it is critical (1) to have multinational efforts to reduce greenhouse gas (GHG) emissions and (2) to simultaneously target emission reduction of light-absorbing species (e.g., BC and O3) on top of long-lived species. The latter is very desirable as the resulting climate benefit occurs faster and provides cobenefits to air quality and public health.

Air quality↗