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on Transport Economics |
| By: | Proost, Stef (Katholieke Universiteit Leuven); van Dender, Kurt (OECD); Eliasson, Jonas (KTH) |
| Abstract: | In many economies, motor fuel taxes have long been the main instruments for generating tax revenues from the transport sector. Nowadays they are also rationalized on the grounds of reducing congestion, carbon emissions, local air pollution, energy dependency, and sometimes accident costs. However, for several reasons, there is now much debate about reforming or partially replacing these taxes. This debate raises several kinds of research questions, including efficient design of such tax instruments and what factors affect their design in reality, CTS organised an international symposium where recent research regarding these issues was presented. This report summarises some findings from the symposium. |
| Keywords: | Fuel tax; Vehicle tax; Transport pricing |
| JEL: | R41 R48 |
| Date: | 2015–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2015_008&r=tre |
| By: | BENSON MBONU OGBONNA (Department of Economics, Abia State University,); Kalu Ebi Uma (Department of Economics & Development Studies, Federal University, Ndufu Alike-Ikwo, Ebonyi State,) |
| Abstract: | The paper examined the effect of transportation network in Nigeria over the years using sub-sector output time series data (road transport, rail transport, air transport and water way) ranging from 1981-2009. We ascertain the impact of the sub-sectors outputs on the real gross domestic product, a measure of economic development. The time series property was ascertained using Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) unit root tests. Almost all the variables were integrated of order two as shown by the ADF statistic, which led to the examination for long-run relationship using Johansen rank co-integration test. The outcome implies a long-run relationship. Ordinary least square approach was employed in the data analysis. The results revealed that only road transport impacted significantly on the real gross domestic product (RGDP). However, the joint effect of the variables on the economy was statistical significant based on the F-statistic. Hence, we made the following recommendations, among others: sufficient and consistent resources should be budgeted and allocated to transportation capital expenditure; private domestic and foreign investors can be contracted to establish transport infrastructure and given a period of time to recoup cost of investment and profit margin. |
| Keywords: | Economic development, impact, transport sector, infrastructure |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:0100855&r=tre |
| By: | Ji Ung Sun (Department of Industrial & Management Engineering, Hankuk University of Foreign Studies) |
| Abstract: | Hub and spoke (H&S) network reflecting the scale economies through consolidation and a large amount of freight transportation is widely used to reduce total transportation costs. H&S network has transportation routes that go to the final destination point pass through hub linking destination from hub linking origin. In this paper we deal with a capacitated hub location-routing problem (HLRP). The HLRP not only considers the locations of the capacitated p-hubs but also deals with the vehicle routing problem for collection and delivery of goods. This problem is formulated as an integer programming model with the objective of the minimum total transportation cost and the fixed cost associated with the establishment of hubs. As the HLRP has impractically demanding for the large sized problems, we develop a solution method based on ant colony optimization algorithm which solves hub location and vehicle routing problem hierarchically. Its performance is examined through a comparative study. |
| Keywords: | Hub and Spoke Network, Hub Location-Routing, Integer Programming, Ant Colony Optimization |
| JEL: | C61 R40 C52 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:0100680&r=tre |
| By: | Alexander Kolik; Artur Radziwill; Natalia Turdyeva |
| Abstract: | Transport can play an important role in promoting growth, diversification and regional convergence. However, with insufficient investment and incomplete structural reforms, Russia faces very large challenges in modernising its large transport system. Urban transport problems are intensifying, because of weak policy coordination and inadequate traffic management. Promoting competition in the transport sector is essential, in particular by effectively opening the railway freight market to independent operators. This Working Paper relates to the 2013 Economic Survey of the Russian Federation (www.oecd.org/eco/surveys/economic-survey-russian-federation.htm).<P>Améliorer les infrastructures de transport en Russie<BR>Les transports peuvent jouer un rôle important dans la promotion de la croissance, la diversification et la convergence régionale. Cependant, du fait d’un niveau insuffisant d’investissements et de réformes structurelles incomplètes, la Russie doit faire face à de très grands défis afin de moderniser son système de transport. Les problèmes de transport urbain s'intensifient en raison de la faible coordination des politiques et d’une gestion inadéquate du trafic. Promouvoir la concurrence dans le secteur des transports est essentiel en particulier via l'ouverture effective du marché du fret ferroviaire aux opérateurs indépendants. Ce document de travail se rapporte à l’Étude économique de l’OCDE 2013 sur la Fédération de Russie (www.oecd.org/fr/eco/etudes/etude-econom ique-russie.htm). |
| Keywords: | competition, transport, environmental standards, safety standards, traffic management, infrastructure, normes environnementales, normes de sécurité, gestion du trafic, transport, concurrence, infrastructure |
| Date: | 2015–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1193-en&r=tre |
| By: | Idrisov, Georgy (Gaidar Institute for Economic Policy; Russian Presidential Academy of National Economy and Public Administration); Taganov, Boris (Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | The purpose of this work is to investigate possibilities to minimize trading costs by choosing the optimal transport routes in Russia. In this paper the following problems are solved. Firstly, the analysis of existing transport routes passing through the territory of Russia is made. Second, the theoretical approaches to the modeling of transport routes and networks are considered. Third, the analysis of the main aspects of measuring the effectiveness of the transport network is executed, the development of a methodology for assessing the competitiveness of Russian transport routes is made, and evaluation of the competitiveness of Russian transport routes of the example routes are attracted to the Black Sea and Azov basin, is performed. |
| Keywords: | transport, Russia, competitiveness, trading costs |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:ppaper:r902ad&r=tre |
| By: | Jonsson, Lina (WSP); Björklund, Gunilla (VTI) |
| Abstract: | This study examines the relationship between train traffic and the accident risk for road users at level crossings. The marginal effect of train traffic on the accident risk can be used to derive the marginal cost per train passage that is due to level crossing accidents. Based on Swedish data from 2000 to 2012 on level crossing accidents, train volume and crossing characteristics, the marginal cost per train passage is estimated at SEK 1.28 (EUR 0.13) on average in 2012. The cost per train passage varies substantially depending on type of protection device, road type and the traffic volume of the trains. |
| Keywords: | Railway; Marginal cost; Accident probability; Level crossings |
| JEL: | D62 H23 R41 |
| Date: | 2015–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2015_007&r=tre |
| By: | Stefan Schönfelder (WIFO); Gerhard Streicher (Austrian Institute of Economic Research); Johan Gille (ECORYS Holding BV); Frank Trosky (Planco) |
| Abstract: | The promotion of Inland Waterway Transport (IWT) is one of the political priorities of the "European Union Strategy for the Danube Region". A growing share of IWT within the regional freight transport market is expected to raise the sustainability of the transport system and provide beneficial regional economic effects. Relatively high energy efficiency and good environmental performance, together with low specific costs, rank among the primary advantages of this transport mode. The study "Danube+20" initiated by the European Commission looked at the employment effects of a 20 percent increase in IWT transport volume in the Danube region by 2020 compared to 2010. The results of the simulation using the multi-regional input-output model ADAGIO indicate that IWT offers a source of moderate additional employment for the river's bordering regions. The employment growth mainly results from induced economic effects, i.e., reduced average transport costs for the entire economy. |
| Keywords: | Freight Transport, Inland Waterway Transport, Danube, Employment Modelling |
| Date: | 2015–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2015:i:497&r=tre |
| By: | Ricardo Flores-Fillol (Universitat Rovira i Virgili); Alberto Iozzi (DEF and CEIS, Università di Roma "Tor Vergata"); Tommaso Valletti (Imperial College London, DEF and CEIS, Università di Roma "Tor Vergata" & CEPR) |
| Abstract: | Airports have become platforms that derive revenues from both aeronautical and commercial activities. The demand for these services is characterized by a one-way complementarity in that only air travelers can purchase retail goods at the airport terminals. We analyze a model of optimal airport behavior in which this one-way complementarity is subject to consumer foresight, i.e., consumers may not anticipate in full the ex post retail surplus when purchasing a flight ticket. An airport sets landing fees, and, in addition, also chooses the retail market structure by choosing the number of retail concessions to be awarded. We find that, with perfectly myopic consumers, the airport chooses to attract more passengers via low landing fees, and also sets the minimum possible number of retailers in order to increase the concessions’ revenues, from which it obtains the largest share of profits. However, even a very small amount of anticipation of the consumer surplus from retail activities changes significantly the airport’s choices: the optimal airport policy is dependent on the degree of differentiation in the retail market. When consumers instead have perfect foresight, the airport establishes a very competitive retail market, where consumers enjoy a large surplus. This attracts passengers and it is exploited by the airport by charging higher landing fees, which then constitute the largest share of its profits. Overall, airport’s profits are maximal when consumers have perfect foresight. |
| Keywords: | two-sided markets, platform pricing, one-way demand complementarity, consumer foresight |
| JEL: | L1 L2 L93 |
| Date: | 2015–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:rtv:ceisrp:335&r=tre |
| By: | Andrea Uszkai (HAS Centre for Economic and Regional Studies Institute of Regional Studies West-Hungarian Scientific Department); László Jóna (HAS Centre for Economic and Regional Studies Institute of Regional Studies West-Hungarian Scientific Department) |
| Abstract: | This paper focuses on the Central and Eastern – European (CEE) region. Its background means an analysis related to the automotive industry, which is a part of a large Hungarian, EU supported research project*. Our aim was to explore what kind of features all of the European settlements have got, where we can find the automotive sector. Based on the results of our cluster analysis, the CEE area has got the weakest social and economic indicators in this international comparison. For this reason, it is essentially important to search for instruments and methods to support the economy of this region. One of the possibilities is the transport infrastructure and network development, because there are a lot of potentials in this branch. |
| Keywords: | automotive industry, Central and Eastern Europe, transport infrastructure development |
| JEL: | R11 R40 R42 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:0801463&r=tre |
| By: | Naglaa Zaafarany (Madar); Sawyia AlSahar (Pension); Sawyia AlSahar (Pension) |
| Abstract: | Located strategically between three continents which hold thousands of markets and industrial global zones, the Suez Canal is considered to be the shortest link between the east and the west due to its unique geographic location.This importance is getting augmented with the evolution of maritime transportation of the world trade, being the cheapest means of transportation, whereas more than 80% of the world trade volume is transported via waterways.Saving the distance for ships has its potential effect on the cost of time and on operational costs for materials and commodities that are shipped through the Canal, maximizes this importance.After the Egyptian revolution on 2011 and the increasing need to develop the national economy of Egypt, a major project to develop the Suez Canal passage way was launched by the Egyptian government on 2012. This paper aims to investigate the impact of developing the region of the Suez Canal passage on Egyptian economy and the world economy. In order to achieve this purpose a research methodology consisting of literature review is used to achieve an in depth understanding of the importance of Suez Canal in global trade. Second part of the paper investigates the plans laid by the Egyptian government to develop the corridor as a world logistics hub. The third part introduces the idea of constructing a similar route of Suez Canal in Sinai to maximize the benefits of the developed area and the impact this can have on Egyptian and global trade. |
| Keywords: | Suez Canal, Egypt, Egyptian Economy, Economy, world trade, maritime transportation |
| JEL: | A30 A19 A10 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:0201554&r=tre |
| By: | Senderski, Marcin |
| Abstract: | One of the cornerstones of far-sighted infrastructure management is that it involves a life-cycle consideration, as endorsed notably by the U.S. Federal Highway Administration. Decisions on investments should be considered in terms of product performance over time. In spite of the initial construction cost, all constituents of maintenance (i.e. cost to be borne during road’s assumed lifespan to keep the specified service level) should be quantified to equip the public investor with full information on pavement’s long-run prospects. The major part of the existing research in this field rests on theoretical calculations which, although sound and scientifically rigid, may not always translate accurately to the actual wear and tear of pavements. Maintenance costs are also delivered to the broad public by tools like Canadian CANPav™ or Polish Kalkulator drogowy, none of which is faultless. This paper aims to apply the real life statistics on concrete versus asphalt construction costs, assembled from the commune of Grybów in southern Poland. Despite limited time series, it is still instructive to cast a closer glance at these few actual figures instead of proving concrete pavements’ long-term advantage on the basis of theoretical or anecdotal evidence. Moreover, the paper addresses the underestimated issue of local concrete roads that often gives way to more rewarding research on high-traffic-volume concrete pavements. The analysis revealed that for a 30-year horizon, given very conservative assumptions as to the discount rate, inflation rate, and the scope and frequency of pavement rehabilitation, concrete pavements are still more economical relative to bituminous pavements. For a representative road section, the net present value of future cash flows related to its maintenance was 5.67% lower in PCC concrete technology. The life-cycle saving may go up to as much as 33-35% when excessively cautious assumptions are lifted. |
| Keywords: | concrete infrastructure; concrete roads; local roads; concrete pavements; asphalt pavements; LCCA; womb-to-tomb; cradle-to-grave |
| JEL: | O33 R42 |
| Date: | 2014–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:63035&r=tre |
| By: | Meryem Duygun (University of Hull. Department of Accounting and Finance); Diego Prior (Universitat Autònoma de Barcelona, Business Department); Mohamed Shaban (University of Leicester, Department of Management); Emili Tortosa-Ausina (IVIE, Valencia and Department of Economics, Universitat Jaume I, Castellón, Spain) |
| Abstract: | In recent years the European airline industry has undergone critical restructuring. It has evolved from a highly regulated market predominantly operated by national airlines to a dynamic, liberalized industry where airline firms compete freely on prices, routes, and frequencies. Although several studies have analyzed performance issues for European airlines using a variety of efficiency measurement methods, virtually none of them has considered two-stage alternatives—not only in this particular European context but in the airline industry in general. We extend the aims of previous contributions by considering a network Data Envelopment Analysis (network DEA) approach which comprises two sub-technologies that can share part of the inputs. Results show that, in general, most of the inefficiencies are generated in the first stage of the analysis. However, when considering different types of carriers several differences emerge—most of the low-cost carriers’ inefficiencies are confined to the first stage. Results also show a dynamic component, since performance differed across types of airlines during the decade 2000–2010. |
| Keywords: | airlines, network DEA |
| JEL: | C61 D61 L93 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:jau:wpaper:2015/04&r=tre |
| By: | Morimoto, Yu; Takeda, Kohei |
| Abstract: | We show that monopoly is better than competition in term of social welfare for low frequency routes. Competition affects both flight schedules and airfares. Flight schedules get un-even interval by competition and this leads to large scheduling delay cost (SDC). The increment of SDC is large when the number of flights is small. For low frequency routes, the increment of SDC by competition overwhelms the decreasing in the airfare, so monopoly is better than competition. |
| Keywords: | Scheduling Delay Cost, Airline Competition, Scheduling |
| JEL: | R41 |
| Date: | 2015–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:63258&r=tre |
| By: | José Antonio Robles-Zurita (Department of Economics, Universidad Pablo de Olavide) |
| Abstract: | We analyze data of a Spanish nationally-representative survey where subjects reported their Willingness To Pay (WTP) for road safety improvements; specifically they hypothetically paid for a reduction of the risk of a road fatality and several injuries. Respondents also reported their current income (CI) and permanent income (PI). The latter refers to their normal income once they considered various stages of low/high earnings throughout their entire lives. Consequently, we define relative income as the comparison of CI with respect to PI. Three income frames are generated as explanatory variables: Gain (with CI>PI); Neutral (with CI=PI); and Loss scenario (with CI<PI). Surprisingly, we find that conditional on current income, and on a set of characteristics, those respondents in gain frame reported higher WTP than those in neutral and loss scenario. Further analysis shows that the income frames effect is higher and more significant for the older half-sample (>45), being about three or four times higher than for the younger subset. Possible interpretations of the role of PI as a reference point are considered given the results. A reference-dependent utility function of income, where PI is the reference point, is proposed to describe the monetary valuation of safety within the theoretical framework previously developed in the safety economics literature. |
| Keywords: | reference-dependent; relative income, willingness to pay, road safety, contingent valuation |
| JEL: | I10 D61 D12 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:pab:wpaper:15.03&r=tre |
| By: | Kojima,Masami; Koplow,Doug |
| Abstract: | Numbers ranging from half a trillion to two trillion dollars have been cited in recent years for global subsidies for fossil fuels. How are these figures calculated and why are they so different? The most commonly used methods for measuring subsidies are the price-gap approach -- quantifying the gap between free-market reference prices and the prices charged to consumers -- the inventory approach, which constructs an inventory of government actions benefiting production and consumption of fossil fuels. Practitioners are not faced with two choices. The two methods are complementary and should be used together -- price gaps cause distortions throughout the economy and quantification is needed for improving pricing policies; an inventory is useful for examining budgetary allocation. An inventory based on a full accounting framework for producer and consumer support estimates in fact captures price gaps as market transfers to producers or consumers. Differences in subsidy valuation arise from assumptions made to compensate for missing data and the scope of subsidy measurement. Having a common understanding of terms and standardizing calculation methods would go a long way in enabling comparison of subsidies across countries and sectors, benchmarking pricing, and assessing subsidy policies. Subsidy measurement should not be viewed as a one-off exercise to inform subsidy reform strategies. Just as subsidy reform in many countries does not have a clear end but is a continuous process of adjustment, so too is subsidy tracking. Devoting resources to data collection and analysis to track subsidies on a continuous basis can bring rich dividends by increasing transparency and enabling informed decisions. |
| Keywords: | Economic Theory&Research,Markets and Market Access,Energy Production and Transportation,Environmental Economics&Policies,Transport Economics Policy&Planning |
| Date: | 2015–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7220&r=tre |
| By: | Antonio Estache; Tomas Serebrisky; Liam Wren-Lewis |
| Abstract: | This article develops a theoretical framework to analyze options for financing infrastructurein developing countries. We build a basic model that gives motivations for usinga combination of public finance, private debt and private equity. The model is thenextended in a number of ways to examine a variety of factors that are important fordeveloping countries when considering financing choices. We focus in particular on keyinstitutional weaknesses that are often important for infrastructure investment. Overall,we show that such weaknesses can be key in determining financing choices, but that theydo not all push in the same direction. Financing schemes must therefore be adapted toconsider the institutional limitations that are most pertinent in any given context. |
| Keywords: | finance; development; infrastructure |
| JEL: | G32 G38 H54 O16 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:eca:wpaper:2013/196926&r=tre |
| By: | SYLWIA LĘGOWIK-ŚWIĄCIK (Czestochowa University of Technology; Faculty of Management); Iga Kott (Czestochowa University of Technology; Faculty of Management); Wioletta Skibińska (Czestochowa University of Technology; Faculty of Management) |
| Abstract: | The paper aims to present the issues of making logistic decision with regard to changes in the IT system companies and their verification in practice. The area of research are customer service processes in the logistics center, which is characterized by service activities. The IT customer service system in logistics centers prevents the disruption in functioning the tested entity and improves the efficiency of the company. Due to the rapidly increasing amount of information processed in logistics centers, IT system affects the efficiency of customer service in the audited company. The applied method of research are literature studies and analysis of dynamic phenomena by using aggregate indices. |
| Keywords: | Making logistics decisions |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:0702440&r=tre |