Airport Area Development Economics: ADE2

What is it? ADE-2 is an enhanced and updated version of the Airport Area Economic Development Model, originally developed by Glen Weisbrod. It estimates airport and directly-related off-airport land development, business activity and employment. It is applicable to assess existing conditions, impacts of future expansion and new airports.

What does it do? The model provides a means for estimating current and/or future changes in building development and employment at the airport, at adjacent airport-related businesses and elsewhere in the community, which are attributable to airport activities. The model provides a means for estimating the potential direct and indirect economic impacts of its operation a community, as well as the potential impacts on regional business growth and attraction. It can be used alone or in conjunction with input-output and benefit-cost models to estimate total economic impacts.

The core of the ADE-2 model is an expert system for relating the evolution of airport land area development to changing characteristics of the air service, airport business function, airport location and surrounding urban development. It was developed on the basis of observed patterns and changes in land development around new and expanded airports in Europe, Asia and North America.

Model Inputs:
airport activity: based aircraft; passengers; flights; volume of freight and main
characteristics of the regional economy: population, employment, gross domestic product
airport function: commuter, corporate, reliever, hub, gateway, maintenance functions
characteristics of the airport setting: land available, land use patterns, distance to downtown, specialization of surrounding business activity

Model Output:
business activity: jobs & business output by type of business (SIC) -- separating at-airport, surrounding vicinity and elsewhere in the region regional income and gross regional product generated net and gross demand for building space -- by building/land use type (square feet or square meters)

What are its uses? Applications include:estimation of airport benefits - current and future; forecasting the potential for future area development; and as an input to benefit/cost analysis. It has been applied in various forms for airports in South Africa, Scotland and Japan, as well as in the US.

Additional Information.

ADE Sample Forms and Reports (pdf 78k)

"Airport Area Economic Development Model," Weisbrod, G. et al., Proceedings of the PTRC Transport Conference. Manchester, England, 1993. pdf file (75k)

Case Study of ADE Use for Pretoria, South Africa