The Dutch Taxation on Airline Tickets

Conference paper (2011)
Department
Multi Actor Systems (TPM) (TU Delft)
Copyright: © 2011 The Author(s)
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Published Date

25-07-2011

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Source:

Proceedings of the 29th International Conference of the System Dynamics Society, Washington, USA, 25-29 July 2011

Faculty

Technology, Policy and Management

Department

Multi Actor Systems

Abstract

In July 2008 the Dutch government introduced a tax on airline tickets in order to internalize the negative externalities associated with air travel. As a result of the increased ticket price in The Netherlands a substantial number of passengers decided to depart from airports outside of The Netherlands. However, after the tax was abolished one year later passengers kept using foreign airports. Because existing traditional discrete choice models do not explain this asymmetric response a system dynamics model was developed to model mechanisms of information exchange related to airport choice. The simulations show that the development of awareness of an airport plays an important role in the asymmetric response. Further research should be conducted to assess the influence of macro-economic factors and specific airline strategies.