Edited by Matthias Ruth and Brynhildur Davidsdottir
Chapter 6: The Economic and Environmental Consequences of Reduced Air Transport Services in Pennsylvania: A Regional Input–Output Life Cycle Assessment Case Study
Gyorgyi Cicas, Chris T. Hendrickson and H. Scott Matthews 6.1 INTRODUCTION US Airways was the sixth-largest air carrier in the US in 2000 (US SEC 2000). With over 18,000 employees and two of its three major hubs located in Pennsylvania, the company had a major influence on both the region’s economy and its environment. When US Airways reduced its service in Pittsburgh and entered Chapter 11 bankruptcy protection in 2004, the long-term effects became of considerable concern to employees, politicians, businesses and citizens in Pennsylvania. Beyond the direct effects on the air transport sector itself, the indirect effects of scaling down the supply chain are also of concern. The objective of this case study is to analyze the regional effects and policy implications of a 50 percent decrease in the economic activity of US Airways in Pennsylvania using our regional economic input–output life cycle assessment (REIO-LCA) model. Our purpose is to illustrate the direct and indirect effects of such major economic impacts, as well as to introduce the use of the REIO-LCA model for such a purpose. Direct impacts herein are impacts on the air transport sector itself and its immediate suppliers. Indirect impacts are effects on the air transport sector supply chain, such as the supply of petroleum to refineries. As important enterprises such as US Airways grow or contract, the dynamics of industrial ecosystems lead to multiple effects through the supply chain. This case study illustrates these effects within a region. The input–output (I–O)...
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