scholarly journals Transitioning the U.S. Air Transportation System to Higher Fuel Costs

2012 ◽  
Vol 2266 (1) ◽  
pp. 38-48
Author(s):  
James K. D. Morrison ◽  
Brian Yutko ◽  
R. John Hansman
Keyword(s):  
Fuel Efficiency ◽  
Air Transportation ◽  
Transportation System ◽  
Policy Options ◽  
Small Community ◽  
Fuel Price ◽  
Fuel Prices ◽  
Fuel Costs ◽  
The U.S

The air transportation system enables economic growth and provides significant social benefits. Future increases and volatility in oil prices, as well as climate change policies, are likely to increase the effective cost of fuel. This paper investigates the expected impacts of higher fuel costs on the U.S. domestic air transportation system and discusses policy options to reduce negative economic and social effects. The 2004 to 2008 fuel price surge is used as a historic case study. A stochastic simulation model is developed with the use of price elasticity-of-demand assumptions and flight leg fuel burn estimates to understand the impacts of higher fuel costs. It was found that a 50% increase in fuel prices was expected to result in a 12% reduction in available seat miles if all cost increases passed through to passengers. System revenues are expected to decrease marginally for fuel price increases up to 50%, but higher increases may result in significant revenue reductions. Small airports are expected to experience relatively larger decreases and greater volatility in traffic. Older aircraft, flying sectors significantly below their optimal fuel efficiency range, are expected to experience the greatest reductions in capacity. An airline case study demonstrates that a regional carrier may be less sensitive to increased fuel prices than other business models. Policy options to maintain small community access, to manage airport traffic volatility, and to improve fleet fuel efficiency are discussed. To transition the U.S. air transportation system to higher fuel costs, stakeholder action will be required.

scholarly journals Fuelling the decline in UK fishing communities?

2010 ◽  
Vol 67 (5) ◽  
pp. 1076-1085 ◽  
Author(s):  
Kirsten E. Abernethy ◽  
Paul Trebilcock ◽  
Bereket Kebede ◽  
Edward H. Allison ◽  
Nicholas K. Dulvy
Keyword(s):  
Policy Development ◽  
Fuel Efficiency ◽  
Price Volatility ◽  
Significant Loss ◽  
Fishing Communities ◽  
Fuel Price ◽  
Fuel Prices ◽  
Fishing Vessels ◽  
The Cost ◽  
Fuel Costs

Abstract Abernethy, K. E., Trebilcock, P., Kebede, B., Allison, E. H., and Dulvy, N. K. 2010. Fuelling the decline in UK fishing communities? – ICES Journal of Marine Science, 67: 1076–1085. Volatile fuel prices are a threat to the viability of UK fishing communities. The economic and social impacts of rising fuel costs for fishers and communities in southwest England are examined. Fuel prices doubled between early 2007 and mid-2008, whereas fish prices remained relatively stable throughout as a result of the price-setting power of seafood buyers. It was the fishers who absorbed the increased costs, resulting in significant loss of income, reduced job security, and problems in recruiting crew. All gear types were affected, but fishers using towed gears were most adversely impacted. Fishing vessels with recent investment have greater fuel efficiency, so appeared to be more able to cope and to adapt to increased fuel costs. Fishing behaviour also altered as skippers attempted to increase fuel efficiency at the cost of reduced catches. Most skippers reported fishing closer to port, reducing their exploratory fishing, and ceasing experimentation with fishing gears with lesser environmental impact. Therefore, a threat to fishing community viability may have linked environmental effects. The impacts of this fuel price volatility foreshadow a likely future impact of rising fuel prices attributable to climate change adaptation and mitigation and forecasts of rising oil prices. Without proactive planning and policy development, rising fuel prices have the potential to cause job losses and economic hardship additional to problems that may arise from poor management and stock decline, in all fishing-related sectors of the industry.

Fuel price increase, subsidies, overcapacity, and resource sustainability

2008 ◽  
Vol 65 (6) ◽  
pp. 832-840 ◽  
Author(s):  
Ussif Rashid Sumaila ◽  
Louise Teh ◽  
Reg Watson ◽  
Peter Tyedmers ◽  
Daniel Pauly
Keyword(s):  
Price Increase ◽  
Positive Aspect ◽  
Significant Component ◽  
Fuel Price ◽  
Fuel Prices ◽  
Resource Sustainability ◽  
Price Increases ◽  
Fishing Sector ◽  
Fuel Subsidies ◽  
Fuel Costs

Abstract Sumaila, U. R., Teh, L., Watson, R., Tyedmers, P., and Pauly, D. 2008. Fuel price increase, subsidies, overcapacity, and resource sustainability. – ICES Journal of Marine Science, 65: 832–840. Global fisheries are currently overcapitalized, resulting in overfishing in many of the world’s fisheries. Given that fuel constitutes a significant component of fishing costs, we expect recent increases in fuel prices to reduce overcapacity and overfishing. However, government fuel subsidies to the fishing sector reduce, if not completely negate, this positive aspect of increasing fuel costs. Here, we explore the theoretical basis for the expectation that the increasing fuel prices faced by fishing enterprises will reduce fishing pressure. Next, we estimate the amount of fuel subsidies to the fishing sector by governments globally to be in the range of US$4.2–8.5 billion per year. Hence, depending on how much of this subsidy existed before the recent fuel price increases, fishing enterprises, as a group, can absorb as much as this amount of increase in their fuel budget before any conservation benefits occur as a result of fuel price increases.

scholarly journals Quantifying the Effects of Aircraft Engine Upgrades on Operating and Support Costs

2021 ◽  
Vol 28 (97) ◽  
pp. 320-343
Author(s):  
Bradford A. Myers ◽  
Edward D. White ◽  
Jonathan D. Ritschel ◽  
R. David Fass
Keyword(s):  
Air Force ◽  
Fuel Efficiency ◽  
Aircraft Engine ◽  
Life Cycle Costs ◽  
Aircraft Engines ◽  
Maintenance Costs ◽  
Support Costs ◽  
Fuel Costs ◽  
The U.S ◽  
Total Life

For fixed wing aircraft within the U.S. Air Force, Operating and Support (O&S) costs encompass a large portion of total life-cycle costs. O&S costs include fuel, maintenance, and engine upgrades. To the authors’ knowledge, no study to date has attempted to empirically quantify the realized effects of new aircraft engines on sustainment costs. Utilizing the Air Force Total Ownership Cost database, they focused on new engines appearing on the C-5s, C-130s, and C-135s. Although narrow in scope, results suggest newer engines have lower fuel costs. Maintenance costs for newer engines were not consistently higher or lower than the engines they replaced, although Contractor Logistics Support was not tracked by engine in this study. We found that savings from improved fuel efficiency tended to be greater than a potential increase in maintenance costs.

scholarly journals Impact of the Reduction of Diesel Fuel Subsidy in the Design of an Off-Grid Hybrid Power System: A Case Study of the Bellavista Community in Ecuador

Energies ◽  
2021 ◽  
Vol 14 (6) ◽  
pp. 1730
Author(s):  
Ruben Hidalgo-Leon ◽  
Fernando Amoroso ◽  
Jaqueline Litardo ◽  
Javier Urquizo ◽  
Miguel Torres ◽  
...  
Keyword(s):  
Power System ◽  
Diesel Fuel ◽  
Electricity Production ◽  
Diesel Generator ◽  
Fuel Price ◽  
Hybrid Power System ◽  
Fuel Prices ◽  
Hybrid Power ◽  
The Impact

This paper presents a technical, economic, and environmental analysis and optimization of the impact of the reduction of diesel fuel subsidy in the design of an off-grid hybrid power system (OHPS). The OHPS includes a diesel generator, battery energy storage system (BESS), and a solar power system (SPS). This impact will focus on the electricity production levels of each of the OHPS components according to the increase of the fuel price and the SPS size. The Bellavista community in Ecuador was selected as the case study for this work. In this South American country, the government has begun a gradual increase in the diesel fuel price until it reaches international prices. Fifteen scenarios of OHPSs were simulated, in Homer Pro software, considering three SPS sizes and varying the diesel fuel price in five values. The annual load profile for the simulations was built based on the information of a previous study in this community. The results showed that for lower fuel prices (USD$0.26/L and USD$0.35/L), the OHPSs worked mostly with their diesel generators with reduced use of their BESSs. However, there was a higher penetration of the power delivered from the SPSs and BESSs, with higher fuel prices (USD$0.44/L, USD$0.53/L, and USD$0.62/L). These OHPSs considerably reduced their CO2 emissions compared with the standalone diesel generator scenario.

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