Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279227 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10478
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Airline fuel consumption is costly for the firms and for society as well due to a climate-change externality. We study how fuel price changes affect cost-minimizing choices by airlines that have implications for the extent of this externality. The airline industry's capital stock can be easily inventoried as a set of long-lived, durable aircraft. This portfolio approach allows us to study the utilization and composition of the capital stock at a highly disaggregated level. Changes in airline operations directed toward conserving fuel can be an important path toward lower emissions.
Subjects: 
airlines
fuel
climate change
carbon emissions
JEL: 
Q52
L93
Document Type: 
Working Paper
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