Should short-haul flights be banned? A simple transportation network analysis

Abstract

We assess the effects of a short-haul flights ban on a transportation network that includes local, international and connecting markets and modal competition between high-speed rail (HSR), air and private car. When connecting markets are relatively important or there is sufficient modal substitution, bans induce more private car traffic, less local HSR traffic due to higher prices and also more international air and connecting traffic since international prices decrease. Our simulation results unveil that when air and private car are the closest substitutes the ban increases environmental damages. Welfare gross of damages typically falls.