This week has seen the Chancellor of the Exchequer state that it is the government’s position that the third runway at Heathrow Airport must proceed. Before auditioning to be a stand up comedian by saying it should be completed and operational within 10 years.
There are a lot of reasons for and against the expansion of airports. But as the government is positioning this as that of economic necessity, I thought it useful to give a short primer on the economic impacts of airport expansion.
To me, understanding the economic impacts of any transport scheme boils down to two things. First is the actual estimated benefit, and the second is the benefit most acutely felt by people – namely jobs, incomes, and costs.
So, what is the economic benefit of airport expansion?
