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A demand model for domestic air travel in Sweden
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Building and Real Estate Economics. (Bygg- och Fastighetsekonomi)
(English)Manuscript (preprint) (Other academic)
Abstract [en]

 The aim of this study is to estimate the price elasticity of demand for domestic air travel in Sweden. Using national aggregated data on passenger quantities and fares, price elasticities of demand are estimated with an unbalanced, in terms of stationarity, yet well performing model. The analysis also includes estimates of cross-price elasticities for the main transport substitutes to air travel, rail and road. The robustness of the results is enforced by a primitive division of business and leisure travellers. The results indicate that aggregated demand for domestic air travel in Sweden is fairly elastic (-.84) in the short-run and more elastic (-1.13) in the long-run. The robustness test of the model show that leisure travellers, as defined in the data, are more sensitive to price changes than are business travellers. Furthermore, the cross price elasticity between rail and air travel is found to be .44.

Keyword [en]
aviation, elesticity, transport, demand
National Category
Other Civil Engineering Economics and Business
Identifiers
URN: urn:nbn:se:kth:diva-34028OAI: oai:DiVA.org:kth-34028DiVA: diva2:418639
Available from: 2011-05-23 Created: 2011-05-23 Last updated: 2013-10-24Bibliographically approved
In thesis
1. Including International Aviation in the EU Emissions Trading Scheme 
Open this publication in new window or tab >>Including International Aviation in the EU Emissions Trading Scheme 
2011 (English)Licentiate thesis, comprehensive summary (Other academic)
Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2011. 14 p.
Series
, Trita-FOB-LIC., 2011:4
Keyword
Aviation, Tradable Permits, Demand, Transport, Climate Change, Gateway
National Category
Other Civil Engineering Economics and Business
Identifiers
urn:nbn:se:kth:diva-33999 (URN)978-91-85783-16-8 (ISBN)
Presentation
2011-06-14, L1, KTH, Drottning Kristinas väg 30, Stockholm, 13:00
Opponent
Supervisors
Note
QC 20110523Available from: 2011-05-23 Created: 2011-05-23 Last updated: 2012-02-22Bibliographically approved
2. Essays on Regional Economics
Open this publication in new window or tab >>Essays on Regional Economics
2013 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis is, to its nature, somewhat wide in scope. The common denominator for theincluded essays is regional economics. Within this very wide area of research, the thesis isdivided rather sharply between one part regarding trading of emission permits in theinternational aviation sector and another part concerned with real estate markets. The basis ofthis thesis is five essays all written for the purpose of peer reviewed publication.The first topic includes three essays; the first provides an overview of previous emissionstrading schemes which allow us to learn for future policy designs when including new sectorsor creating new trading schemes. The second essay aims at estimating elasticities for domesticair travel in Sweden. The third essay, takes an analytical approach to scrutinizing theproposed barrier of trade between the international aviation sector and the stationary sourceswithin the EU ETS.The second topic is motivated by the structural relocations that two municipalities in thenorthern part of Sweden are currently undergoing. The first essay on this topic, the fourthessay of this thesis, concerns redistributions of wealth that occur when moving a city center.The fifth and final essay approaches the problem of measuring an effect of information onhouse values with small quantities of data, such as is the case for Gällivare municipality.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2013. 28 p.
Series
TRITA-FOB, 2013:4
National Category
Economics and Business
Identifiers
urn:nbn:se:kth:diva-131750 (URN)978-91-85783-34-2 (ISBN)
Public defence
2013-11-14, F3, Lindstedsvägen 26, KTH, Stockholm, 13:00
Opponent
Supervisors
Note

QC 20131024

Available from: 2013-10-24 Created: 2013-10-17 Last updated: 2013-10-24Bibliographically approved

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