Publication Type

Journal Article

Version

Postprint

Publication Date

3-2016

Abstract

Price cap regulation (PCR) was first implemented for privatized utilities in the UK in the 1980s. It has since been adopted by numerous countries as a regulatory regime in several sectors. This paper focuses on the development of different forms of price regulation of airports of which PCR is one variant. In countries where airport privatization is still in the early stages, the spectrum of airports and varied nature of regulatory regimes can be confusing and the lack of a general framework can itself become an obstacle to privatization. This paper proposes a general framework comprising decisions to be made for seven variables which is able to accommodate the diversity of airports and varied approaches that may be required as well as transitions between approaches. These approaches include light-handed regulation, price or revenue yield caps, rate of return regulation, earnings sharing, as well as choice of till.

Keywords

Airport regulatory regimes, Price cap regulation, Earnings sharing, Choice of till

Discipline

Economics | Public Economics | Transportation

Research Areas

Applied Microeconomics

Publication

Journal of Air Transport Management

Volume

51

First Page

39

Last Page

45

ISSN

0969-6997

Identifier

10.1016/j.jairtraman.2015.11.001

Publisher

Elsevier

Copyright Owner and License

Authors

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://dx.doi.org/10.1016/j.jairtraman.2015.11.001

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