On the basis of a joint economic and legal analysis, we evaluate the effects of a “regional” (European) emission trading scheme aiming at reducing emissions of international shipping. The focus lies on the question which share of emissions from maritime transport activities to and from the...

Grandfather rights are currently used in the European Union to allocate airport slots. This article shows that airports prefer such a use-it-or-lose-it rule to unconditional property rights. Assuming that there are informational asymmetries between airports and air carriers because air carriers...

This paper addresses the problem of hub airport privatization, similar to the studies by Matsumura and Matsushima (2012) and Mantin (2012). However, differentiating from their papers, this paper introduces a domestic airline network. That is, each country has one major hub airport and some local...

We study the interactions between fuel efficiency improvements in the transport sector and the oil market, where the efficiency improvements are policy-induced in certain regions of the world. We are especially interested in feedback mechanisms of fuel efficiency such as the rebound effect,...

Even if one is sympathetic to the idea of helping industries in times of crisis, the critical question to ask is, Are there more effective ways to resolve a company's financial problems than a taxpayer-funded bailout?While the airline industry is always fast to request a bailout, such a bailout...

In this article, Professor Kaswan argues that hoped-for greenhouse gas reductions cannot be achieved without reducing consumption. Given their control over land use and buildings, cities can play a key role in reducing consumption. She argues that, while existing federal proposals for a...

Patent offices around the world face massive backlogs of applications, which threatens to slow down the pace of technological progress. However, economists lack analytical tools to tackle the issue. This paper provides a model of patent backlogs inspired by the literature on traffic congestion....

As many countries are seeing the first signs of recovery from the COVID-19 pandemic, they are also shifting their policies from limiting the immediate economic impact of the pandemic on households and businesses to designing strategies that will revive long-term growth. Systemic challenges, such...

Does the sunk cost fallacy affect decision-makers in high-stakes situations? We develop a behavioral model of usage of a durable good with mental accounting for sunk costs. It predicts that usage increases in the sunk cost, and attenuates with time at a rate that increases in the sunk cost. The...