Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278887 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16189
Publisher: 
Institute of Labor Economics (IZA), Bonn
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: 
airline fuel consumption
energy conservation
carbon dioxide emissions
JEL: 
R4
Q54
Document Type: 
Working Paper

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