Tourism growth versus airport environmental capacity: An application of Ramsey pricing to Spanish tourist airports

Airport infrastructure in many countries is being up-graded to meet the growing demands of tourism, and air travel more generally, but this poses problems for sustainable development. Thus, there is the need to establish an alternative to the traditional airport pricing structure for landing fees so as to reflect the true cost that air transports imposes on others. This paper analyses one application of Ramsey pricing to some Spanish tourist airport that embraces environmental as well as conventional financial costs.