Flying More Efficiently: Joint Impacts of Fuel Prices, Capital Costs and Fleet Size on Airline Fleet Fuel Economy

Zsuzsanna Csereklyei; David I. Stern

doi:10.1016/j.ecolecon.2020.106714

Flying More Efficiently: Joint Impacts of Fuel Prices, Capital Costs and Fleet Size on Airline Fleet Fuel Economy

Zsuzsanna Csereklyei^*, David I. Stern

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

16 Citations (Scopus)

Abstract

We investigate the factors that affect airlines' choice of fleet fuel economy using aircraft-level data for 1267 airlines in 174 countries. Larger and newer aircraft are usually more fuel-efficient. Controlling for the effect of aircraft size and age, we find that the technically achievable fleet fuel economy improves with the size of airlines and the price of fuel and worsens with higher capital costs. The elasticity of fuel economy with respect to the price of fuel is between −0.07 and −0.13. We find evidence for regional differences in fleet fuel economy that are attributable to the adoption of distinct groups of technologies.

Original language	English
Article number	106714
Journal	Ecological Economics
Volume	175
DOIs	https://doi.org/10.1016/j.ecolecon.2020.106714
Publication status	Published - Sept 2020

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10.1016/j.ecolecon.2020.106714

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abstract = "We investigate the factors that affect airlines' choice of fleet fuel economy using aircraft-level data for 1267 airlines in 174 countries. Larger and newer aircraft are usually more fuel-efficient. Controlling for the effect of aircraft size and age, we find that the technically achievable fleet fuel economy improves with the size of airlines and the price of fuel and worsens with higher capital costs. The elasticity of fuel economy with respect to the price of fuel is between −0.07 and −0.13. We find evidence for regional differences in fleet fuel economy that are attributable to the adoption of distinct groups of technologies.",

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AB - We investigate the factors that affect airlines' choice of fleet fuel economy using aircraft-level data for 1267 airlines in 174 countries. Larger and newer aircraft are usually more fuel-efficient. Controlling for the effect of aircraft size and age, we find that the technically achievable fleet fuel economy improves with the size of airlines and the price of fuel and worsens with higher capital costs. The elasticity of fuel economy with respect to the price of fuel is between −0.07 and −0.13. We find evidence for regional differences in fleet fuel economy that are attributable to the adoption of distinct groups of technologies.

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Flying More Efficiently: Joint Impacts of Fuel Prices, Capital Costs and Fleet Size on Airline Fleet Fuel Economy

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