%0 Report %A Brueckner, Jan K. %A Kahn, Matthew E. %A Nickelsburg, Jerry %T How Do Airlines Cut Fuel Usage, Reducing Their Carbon Emissions? %D 2023 %8 2023 May %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 16189 %U https://www.iza.org/publications/dp16189 %X Airline fuel consumption is costly for the firms and for society as well due to a climate-change externality. We study how fuel price changes affect cost-minimizing choices by airlines that have implications for the extent of this externality. The airline industry's capital stock can be easily inventoried as a set of long-lived, durable aircraft. This portfolio approach allows us to study the utilization and composition of the capital stock at a highly disaggregated level. Changes in airline operations directed toward conserving fuel can be an important path toward lower emissions. %K carbon dioxide emissions %K energy conservation %K airline fuel consumption