This chapter examines the contribution of Computable general equilibrium (CGE) modelling to the quantification of the economic impacts and benefits of air transport infrastructure and policies, focusing primarily on the structure, overall operation, strengths and weaknesses of existing air transport focused CGE models. A CGE model can be defined as a set of equations describing the behaviour of representative agents and the technological and institutional constraints facing them. Models can be distinguished by their treatment of time and the level of spatial detail. An alternative model of transport costs is to define a transport service which is used to ship goods and people between locations. CGE models have recently been used in air transport economics and policy formulation. CGE models have been used in Australia to analyse the economic impacts of an additional runway at Brisbane Airport and the impact of a new airport for Sydney.
|Title of host publication||Air Transport and Regional Development Methodologies|
|Editors||Anne Graham, Nicole Adler , Ofelia Betancor, Volodymyr Bilotkach, Enrique J. Calderón, Gianmaria Martini, Hans Martin Niemeier, António Pais Antunes|
|Place of Publication||London|
|Number of pages||21|
|Publication status||Published - 28 Dec 2020|