air transport subsidies in regional development: a ... · systematic review and meta-regression...
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Air transport subsidies in regional development: A systematic review and meta-regression analysis
Hanjun (Louis) Wu, Massey University and Dr Yi-Hsin Lin, National Taichung University of Science and Technology, Taiwan
Background Information and Research PurposesBackground:
• Air transport is important to facilitate the economic growth (including tourism) in smaller regions.
• Air connectivity plays an important social role in providing access to essential services (e.g. healthcare).
• NZ Airports Association report (2017) called on the New Zealand government to allocate dedicated funding to isolated airports.
• The knowledge of subsidy’s impacts on regional development and wellbeing is still lacking.
Research purposes:
• Systematically review aviation subsidies relevant to regional development and wellbeing in previous studies
• Identify the benefits and impacts of aviation subsidies on regional air transport activity and wellbeing (economic, societal and
environmental)
• Synthesize results of aviation subsidies impact on regional wellbeing
Research method:
• Three database (Google Scholar, Web of Science, and Scopus ) + supplementary searching (Google.com)
• English literature only, 1974‒August 2019.
Overall, 110 publications were included, with 86 journal articles, 21 reports, and 3 book chapters.
Number of Publication of Regional Aviation Subsidies (1974‒August 2019)
1 1 1 1 12
1 1 1 1 12
1 12 2
5
1 1 1 1 1
7
17
1210
79
10
7
1
02468
1012141618
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
No.
of p
ublic
atio
ns
YearBefore 2010 After 2010
No. of publications 29 81
4826
2323
2221
1717
1615
1412
109
87
666
5555555
0 10 20 30 40 50 60
US
France
Italy
Germany
Portugal
Greece
Scotland
Belgium
Czech Republic
Slovakia
Austria
Netherlands
Romania
Countries Studied in Publications (publications >=5)
Trends Showing Aviation Subsidies Beneficiaries
1 11 11 111 1 11
2
1 1
22
4
1111
0
3
619
7419
7719
8019
8319
8619
8919
9219
9519
9820
0120
0420
07
No.
of p
ublic
atio
nsPanel A: 1974‒2009
1
43
45
1
4 4
11
7
14
97
4
87 7
12
3
1
3
1 1
0
3
6
9
12
15
2010201120122013201420152016201720182019
No.
of p
ublic
atio
ns
Panel B: 2010‒August 2019
Aviation supplier Airport Airline Local resident
No. of publications 1 32 92 12
Trends Showing Aviation Subsidies Types
1 1 1
3
1111 11
2
11 1 11
2
1 1
222
111111
0
3
6
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
No.
of p
ublic
atio
nsPanel A: 1974‒2009
2 2 2 21
24
21
3
14
98
5 57 7
13
2 21 1
32 2
12
12
1
0
3
6
9
12
15
2010201120122013201420152016201720182019
No.
of p
ublic
atio
ns
Panel B: 2010‒August 2019
Grants, equity and loansSubsidy schemes
pertaining to remote regions
Hidden subsidies No or reduced taxes
No. of publications 26 82 22 6
Trends Showing Aviation Subsidies Impacts
1 11
2
1 1 11 11
2
111
111
1 1
0
3
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
No.
of p
ublic
atio
nsPanel A: 1974‒2009
3
10
4
6
4
6
3 3
1
4 43
4 4
2 21 1
6
21
2 21
3
112
1 1 1
0
3
6
9
12
2010201120122013201420152016201720182019
No.
of p
ublic
atio
ns
Panel B: 2010‒August 2019
Air transport activities Economic wellbeing Societal wellbeing Environmental wellbeing
No. of publications 54 26 24 6
Findings of Descriptive Analysis
• Aviation subsidies research has attracted increasing attention since 2011
• Most attention given to the USA and EU countries, while countries from other continents have rarely
received attention
• Most studies were concerned with subsidies to airlines (routes), whereas less attention has been paid to
airports and local residents
• Subsidies schemes pertaining to remote regions had by far receiving the dominant attention, while
grants, equity and loans along with no or reduced tax have attached increasing attention since 2011
• 49% of publications regarding aviation subsidies’ impact on societal wellbeing, followed by economic
wellbeing (24%), and societal wellbeing (22%), and environmental wellbeing were considerably less
studied
Co-occurrence of Keyword Lists
RemarksColour of bubbles Average year of publication
Size of bubbles Importance (based on frequency)
Link between bubbles
Relationship between keywords
Co-occurrence of Common Words in Title and Abstract
RemarksColour of bubbles Average year of publication
Size of bubbles Importance (based on frequency)
Link between bubbles
Relationship between keywords
Word Cloud Showing Top 100 Frequently Used Words
Impact categories Indicators % of publications with indicators Number of publicationsAir transport activities 49.09% 54
Air accessibility 40.91% 45Flight frequency 10.00% 11Flight movements or traffic 4.55% 5Seat capacity 4.55% 5Number of passengers 10.91% 12
Economic wellbeing 23.64% 26Employment growth 7.27% 8GDP/GRP 2.73% 3Gross Value Added (GVA) 0.91% 1Local business 5.45% 6Per capita income 0.91% 1Population 2.73% 3Real aggregate taxable income 1.82% 2Tourism 10.00% 11Cargo 3.64% 4
Societal wellbeing 21.82% 24Airfare 16.36% 18Education 5.45% 6Medical treatment 6.36% 7Social cohesion 3.64% 4Work-related mobility 0.91% 1
Environmental wellbeing 5.45% 6Carbon emission 5.45% 6
Aviation Subsidies Impact Categories & Indicators
Findings of Content Analysis
Co-occurrence of Keyword List and Common Words in Abstract and Title
• The most frequently used keywords appear to be subsidies, subsidy programs, and air service providers
• Increasing attention to look at the aspects of regions and remote regions
• A distinct lack of knowledge regarding aviation subsidies’ impacts
Word Cloud
• Results are similar to co-occurrence maps
• Few keywords show the effect of aviation subsidies on regional air transport activity, economic and societal
wellbeing (e.g. connects, economics, fare, pricing, and airline seats)
Impact Categories and Indicators
• 20 indicators of aviation subsidies’ impacts on regional development were identified.
• The most important indicator is air accessibility, followed by airfare, number of passengers, tourism, and flight
frequency
Meta-regression Estimation (Probit)
Air transport activity
Economic wellbeing Societal wellbeing
Environmental wellbeing
Subsidy typesGrants, equity and
loans1.142 (0.698) 1.305 (0.854) N/A -0.734 (0.925)
Subsidy schemes pertaining to remote
regions
1.043 (0.722) 1.701* (0.992) -1.086 (0.969) -2.094** (0.835)
Hidden subsidies 1.223 (0.835) 2.745** (1.149) N/A -1.341 (1.022)
Subsidy beneficiariesAirport 6.341*** (0.521) -0.982 (0.798) 2.543*** (1.084) N/AAirline 6.459*** (0.481) -1.892** (0.782) 3.203** (1.024) -0.817 (0.915)
Resident 5.894*** (0.656) N/A 4.242*** (1.126) N/A
Findings of Meta-regression Analysis
• Subsidy schemes and hidden subsidies are more likely to contribute to regional economic
wellbeing
• Studies focusing on subsidy schemes pertaining to remote regions tend to less address
environmental wellbeing
• Subsidies to airport, airline, and resident are more likely to find aviation subsidies impact on
regional air transport activity and societal wellbeing
• Economic wellbeing is less addressed when study looking at subsidies to airline
Possible future research directions
1. Extend identified indicators and develop more of air transport, economy, social wellbeing, and environmental wellbeing to
measure aviation subsidies’ impact
• Extend knowledge of indicators such as regional tourism (e.g. New Zealand and Taiwan)
• Develop more indicators such as unemployment rate, trade, etc.
2. More research studying aviation subsidies impact on economic, societal and environmental wellbeing is needed
• More empirical research studying airport and airline subsidies’ impact on regional economic and societal wellbeing
is needed
• More research studying subsidies to resident and reduced tax is needed
• Environmental wellbeing should be received more attention from academia and professional practitioner
• Employ surveys or interviews (e.g. stakeholders like tourism and airport authorities, airlines; government, regional
councils; general public) to collect data for analysis (e.g. aviation subsidy data does not always available)
3. Explore the impact of regional aviation subsidies in countries outside the EU and US (e.g. China)
Thanks for your attention!