Please note that this is not a call for tenders but a publication announcing the Contracting authority’s intention to publish a future negotiated low or middle valueprocedure.
The aim of this contract is to obtain accurate measures of tariff equivalents of protection on aviation services. The objective is to build a gravity model specific to the aviation sector and use its results to derive ad-valorem tariff equivalents of this sector. These tariffs will then be used in-house by the “Economics of Climate Change, Energy and Transport” Unit of the Energy, Transport and Climate Directorate of the Joint Research Centre as a baseline against a set of liberalisation scenarios for the aviation industry. The work requires building tariff equivalents for aviation for all countries on the Global Trade Analysis Project (GTAP) data. The tariff equivalents should be computed using a fixed effects methodology. The contractor must build a gravity type model using panel data to explain how the current level of liberalisation on air transport services impacts the value of bilateral passenger traffic. There is already evidence of a positive and significant relationship between the value of traffic and the degree of liberalisation of the aviation market. The gravity model should include information on aviation agreements between countries, distance between arrival and departure, and commercial flight information(e.g., airline, number and price of tickets, connections etc). Data collection for the model is also expected.