This report uses new econometric research and a
review of previous studies to provide guidelines on the
appropriate level and type of demand elasticity to use
when analysing a policy proposal. It provides robust
elasticity estimates to ensure that policy decisions
related to issues such as liberalisation, airport charges,
taxation, and emissions schemes, are made on the
basis of appropriate and reliable evidence. It provides
important new estimates to ensure that price elasticity
estimates do not underestimate the sensitivity of
passengers to price and are used correctly