The Aviation environmental Portfolio Management Tool for Economics (APMT-Economics) models airline and aviation market responses to environmental policy options. It is part of a series of tools based on the latest research understanding to provide a thorough assessment of how changes to one or more aviation technologies or operations will affect many other aspects of aviation and society.
The APMT-Economics tool is currently being developed to support International Civil Aviation Organization (ICAO) Committee on Aviation Environmental Protection (CAEP) cost effectiveness analyses and for use in considering US Next Generation Air Transportation System (NextGen) scenarios. APMT can be used in conjunction with other elements of the Aviation Environmental Tools Suite.
MVA Consultancy and the Partnership for AiR Transportation Noise and Emissions Reduction are developing APMT-Economics for the U.S. Federal Aviation Administration.
U.S. government use of the APMT-Economics tool is through the FAA Office of Environment and Energy. There are currently no plans to release the APMT-Economics tool to the general public.
The main objective of APMT-Economics is to establish a comprehensive projection of air transport demand and supply, while taking into account:
The matching of demand and supply within APMT-Economics is based on a so-called partial equilibrium approach. In this approach, the analysis of changes is limited to the air transport market. In the context of the Tools Suite, this means that a new equilibrium is brought about in the market for air travel after a change in measure, and the impact of that change on the travelling public and air carriers. Within the APMT-Economics functionality, changes in costs to air carriers are translated into changes in air fares, leading to an adjustment of air transport demand.
Below is a diagram of the main steps in the APMT-Economics tool.
APMT-Economics modelling methodology.