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on Transport Economics |
| By: | Parry, Ian W.H.; Timilsina, Govinda R. |
| Abstract: | Economically efficient prices for the passenger transportation system in the Greater Cairo Metropolitan Area would account for broader societal costs of traffic congestion and accidents, and local and global pollution. A $2.20 per gallon gasoline tax (2006 US$) would be economically efficient, compared with the current subsidy of $1.20 per gallon. Removal of the existing subsidy alone would achieve about three-quarters of the net benefits from subsidy elimination and the tax. Per-mile tolls could target congestion and accident externalities more efficiently than fuel taxes, although they are not practical at present. A combination of $0.80 per gallon gasoline tax to address pollution (versus $2.20 without tolls), and $0.12 and $0.19 tolls per vehicle mile on automobiles and microbuses, respectively, to address traffic congestion and accident externalities (versus $0.22 without fuel taxes) would be most efficient. Current public bus and rail subsidies are relatively close to efficient levels in the absence of such policies; however, if automobile and microbus externalities were fully addressed through more efficient pricing, optimal subsides to public transit would be smaller than current levels. |
| Keywords: | Transport Economics Policy&Planning,Roads&Highways,Airports and Air Services,Transport and Environment,Energy Production and Transportation |
| Date: | 2012–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6083&r=tre |
| By: | Antoci, Angelo; Borghesi, Simone; Marletto, Gerardo |
| Abstract: | Car use is an increasingly serious problem in many modern cities because of polluting emissions, noise, accidents and congestion. To examine this issue, this paper analyzes the individual choice between taking the car and using alternative transport modes (e.g. walking, cycling, taking the bus etc...) in the presence of cars' negative impacts on alternative transport modes. Using a simple evolutionary model, we show the existence of suboptimal Nash equilibria characterized by the widespread use of cars and discuss the effects of simple transport policies that reduce cars' negative impacts on alternative transport modes. |
| Keywords: | urban transport; cars; negative impacts; evolutionary dynamics; suboptimal Nash equilibria |
| JEL: | R40 D62 R41 C73 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39560&r=tre |
| By: | Krüger, Niclas (VTI) |
| Abstract: | In this paper we examine the stochastic properties that long term aggregate traffic demand exhibits. Based on the results of the time series analysis, we examine how fractionally integrated processes affect real option valuation in road projects. We conclude that the long memory property we find in long term aggregate traffic demand using Swedish data, implying that a shock in demand has persistent positive effects on future demand, leads to higher option values in road projects compared to the values from a standard model using geometric Brownian motion. |
| Keywords: | Real option analysis; Fractional Brownian motion; Monte Carlo simulation |
| JEL: | H54 R42 |
| Date: | 2012–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2012_017&r=tre |
| By: | Adamos Adamou (Department of Economics, University of Cyprus, Cyprus); Sofronis Clerides (Department of Economics, University of Cyprus, Cyprus; Centre for Economic Policy Research, UK); Theodoros Zachariadis (Department of Environmental Science and Technology, Cyprus University of Technology, Cyprus) |
| Abstract: | We estimate demand for automobiles in Greece using a discrete choice model of product differentiation and use the model to evaluate carbon-based tax schemes that could shift consumer purchases towards low-CO2 cars and thus lead to the reduction of fuel use and CO2 emissions. We find that careful policy design, supported by appropriate modeling, can bring about substantial environmental benefits without losing control of economic parameters such as public finances or firm profits. This finding comes in contrast to the results of recent vehicle tax reforms in European countries, which turned out to be more costly than initially expected. Our analysis indicates that, especially in countries with already heavy vehicle taxation, improper implementation of carbon-based taxes can have adverse unintended environmental consequences. |
| Keywords: | automobile market, carbon taxation, emissions, feebates |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:33_12&r=tre |
| By: | Lee, Daegoon; Cho, Seong-Hoon; Roberts, Roland K.; Lambert, Dayton M. |
| Keywords: | Demand and Price Analysis, Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124596&r=tre |
| By: | Oscherov, Valeria; Moeltner, Klaus; Grant, Jason |
| Keywords: | Demand and Price Analysis, Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124852&r=tre |
| By: | Fatal, Shay; Kotsiri, Sofia; Tejeda, Hernan; Zhan, Congnan |
| Abstract: | The purpose of this study is to identify potential reductions of energy use2 and Green House Gases (GHG) emissions in the U.S. downstream (i.e., after production) supply chain of ethanol and gasoline fuels, by determining optimal transportation modes and routes. The analysis considers ethanol producers and fuel blending terminals, including consolidation and receiving hubs (Russell et al., 2009). Likewise transportation modes used for shipping ethanol are taken into account - rail, truck - in order to determine optimal delivery. Initial results support the need for construction of a new hub consolidation terminal or the expansion of the existing ones. This initial study leaves gasoline fuels, as well as shipments of ethanol via barge or vessel and of gasoline via pipeline, for a future extension. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124700&r=tre |
| By: | WALTHER Olivier; REITEL Bernard |
| Abstract: | This paper provides evidence of how national and linguistic borders affect the structure of policy networks. Our analysis of the Basel metropolitan region located across Switzerland, France and Germany considers the case of cross-border public transportation. Using a social network approach based on 44 actors, we show that national borders play a diminishing role in the formation of policy networks for both information exchange and decision making but still limit interactions between German and French-speaking actors. Local actors develop different brokerage roles according to their country of origin, with Swiss actors acting as coordinator and representative brokers vis-à-vis players located in France and Germany. |
| Keywords: | policy networks; cross-border metropolitan region; transport policies; social network analysis; Basel; Switzerland; France; Germany |
| JEL: | F15 F16 J61 R42 R50 R58 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:12-26&r=tre |
| By: | Chakravorty, Ujjayant (University of Alberta, Department of Economics); Hubert, Marie-Helene (Economics and Management Research Centre); Nostbakken, Linda (University of Alberta School of Business) |
| Abstract: | More than 40% of US grain is now used to produce biofuels, which are used as substitutes for gasoline in transportation. Biofuels have been blamed universally for recent increases in world food prices. Many studies have shown that these energy mandates in the US and EU may have a large (30-60%) impact on food prices. In this paper we show that demand-side effects - in the form of population growth and income-driven preferences for meat and dairy products rather than cereals - may play as much of a role in raising food prices as biofuel policy. By specifying a Ricardian model with differential land quality, we show that a significant amount of new land will be converted to farming which is likely to cause a modest increase in food prices. However, biofuels may increase aggregate world carbon emissions, due to leakage from lower oil prices and conversion of pasture and forest land for farming. |
| Keywords: | clean energy; food demand; land quality; renewable fuel standards; transportation |
| JEL: | Q24 Q32 Q42 |
| Date: | 2012–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:albaec:2012_011&r=tre |
| By: | Bataille, Marc |
| Abstract: | Der deutsche Busliniennahverkehr wird heute in den meisten Bundesländern durch ein monopolisiertes Verkehrsangebot kommunaler Gesellschaften dominiert. Mit der bevorstehenden Überarbeitung des Personenbeförderungsgesetzes rückt die Frage nach einer geeigneten wettbewerblichen Entwicklung des Ordnungsrahmens im deutschen Busliniennahverkehr wieder in den Mittelpunkt. Die Findung eines geeigneten Wettbewerbskonzeptes im Busliniennahverkehr stellt jedoch ein schwieriges Problem dar. Die Untersuchung der ökonomischen Eigenschaften des Busliniennahverkehrs und die Auswertung theoretischer und empirischer Studien zeigen deutlich, dass sich im unregulierten Wettbewerb keine effiziente Koordination konkurrierender Verkehrsgesellschaften einstellen kann. Es wird weiter dargestellt, dass vor diesem Hintergrund insbesondere Ausschreibungs- und Open-Access-Regulierungslösungen geeignet sind, um wettbewerbliche Effizienzpotenziale im Busliniennahverkehr zu nutzen. Dabei muss ein Regulierungsrahmen das Subventionserfordernis des Busverkehrs berücksichtigen, um Tarife und Bedienfrequenzen zu optimieren. Die Erkenntnisse der normativen Analyse werden mit dem Status quo der heutigen deutschen Regulierung verglichen, um wettbewerbspolitische Handlungsempfehlungen abzuleiten. Ein konsequenter Ausbau des bestehenden Mischsystems aus Open-Access und Ausschreibungselementen bei Wegfall wesentlicher Marktzutrittsbarrieren ist danach erforderlich, um die Effizienz im deutschen Busliniennahverkehr nachhaltig zu verbessern. -- Germanys local-bus-transport-markets are dominated by public monopoly companies in most federal states. While a recast of transport law is imminent, the crucial question focuses on an appropriate concept for competition in bus industry. Indeed, such a general concept is hard to identify as unregulated competition in the sector tends, according to theoretical and empirical studies, to lead to inefficient outcomes. We show that two general approaches are promising to be more efficient: Competitive tendering of bus routes on one hand and regulated open-access-competition on the other hand. Moreover an appropriate concept has to include subsidies to shrink fares or raise service-frequencies to an optimal level. Normative results are compared with the status quo of German bus regulation, to develop policy implications. A consequent development of the current mixed system of open-access and tendering elements and the removal of barriers to entry are necessary, to sustainably increase the efficiency level in German local-bus-sector. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:diceop:26&r=tre |
| By: | Etemadnia, Hamideh; Goetz, Stephan J. |
| Keywords: | Agribusiness, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:125014&r=tre |
| By: | Walker, Sarah |
| Abstract: | The current study explores the role of economic integration in catalyzing structural change. Specifically, it addresses the question of how reductions in transportation costs affect patterns of production specialization over time. Drawing upon the New Economic Geography literature (Krugman, 1991; Krugman & Venables, 1995) and exploiting a natural experiment in the 19th century Austro-Hungarian Empire, I develop a structural model to empirically measure the effect of reduced transportation costs – through the introduction of railroads – on the concentration of manufactures production in a regional economy over time (i.e., 1841-1917). The structural estimations are supplemented by a reduced form strategy that attempts to address the inherent simultaneity bias that the structural estimates are incapable of solving. |
| Keywords: | International Development, International Relations/Trade, |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124614&r=tre |
| By: | Ivan Muñiz Olivera (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Miguel Angel García López (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona) |
| Abstract: | One of the criticisms leveled at the model of dispersed city found all over the world is its unarticulated, random, and undifferentiated nature. To check this idea in the Barcelona Metropolitan Region, we estimated the impact of the urban spatial structure (CBD, subcenters and transportation infrastructures) over the population density and commuting distance. The results are unfavorable to the hypothesis of the increasing destructuring of cities given that the explanatory capacity of both functions improves over time, both when other control variables are not included and when they are included. |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:uab:wprdea:wpdea1207&r=tre |
| By: | Chandler, Vincent |
| Abstract: | This paper assesses the impact of a decrease in demerit points on the probability of traffic violation. To address the inherent heterogeneity of drivers, I use the expiration process of points to compare the behaviour of similar drivers with different demerit points. I find that a 3-point decrease in the number of demerit points only has an impact for drivers close to the limit, but increases their probability of violation by 50 to 80 percent. |
| Keywords: | Demerit point system; deterrence; driving; road safety; traffic violation |
| JEL: | K32 K42 C25 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39439&r=tre |
| By: | Böckers, Veit; Heimeshoff,Ulrich; Müller, Andrea |
| Abstract: | The focus of this paper is the empirical evaluation of the German Accelerated Vehicle Retirement program, that was implemented in January 2009 to stimulate automobile consumption. To adress this question a monthly dataset of new car registrations owned by private consumers from March 2001 until October 2011 is created. Especially small and upper small car segments seem to have profited from the scrappage program as they make up 84% of the newly registered cars during the program. Using uni- and multivariate time-series models counterfactual car registrations are estimated for vehicles from the small and upper small car segment. The results suggest that the policy has been successful in creating additional demand for new cars during the policy period. We also find a small contraction in the year after the end of the policy for the small market segment. For upper small cars the pull-forward effect could only be identified for the last quarter of the ex-post period. So in summary, the overall effect of the German car scrappage program is positive for the two market segments. -- |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:dicedp:56&r=tre |
| By: | Martimort, David; Straub, Stéphane |
| Abstract: | We analyze how uncertainty regarding future climate conditions affects the design of concession contracts, organizational forms and technological choices in a principal-agent context with dynamic moral hazard, limited liability and irreversibility constraints. The prospect of future, uncertain productivity shocks on the returns on the firm’s effort creates an option value of delaying efforts which exacerbates agency costs. Contracts and organizational forms are drafted to control this cost of delegated flexibility. Our analysis is relevant for infrastructure sectors that are sensitive to changing weather conditions and sheds a pessimistic light on the relevance of Public-Private Partnerships in this context. |
| JEL: | D82 L32 Q54 |
| Date: | 2012–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:25892&r=tre |
| By: | Dorothée Boccanfuso (Département d’économique and GRÉDI, Université de Sherbrooke); Marcelin Joanis (Département d’économique and GRÉDI, Université de Sherbrooke); Patrick Richard (Département d’économique and GRÉDI, Université de Sherbrooke); Luc Savard (Département d’économique and GRÉDI, Université de Sherbrooke) |
| Abstract: | The economic literature has been investigating the positive relation between public infrastructure spending and the productivity of the private sector since Munnell (1992). We have introduced this relationship into a recursive dynamic computable general equilibrium model of the Quebec economy to investigate various funding schemes to scale up infrastructure spending in the province. We draw our assumptions from Estache et al. (2010) combined with sectoral elasticity parameters. We conduct a comparative analysis where the funding comes from debt alone, and debt with sales tax, income tax and business tax. Our main finding is that the income tax seems to produce the most positive effects and the businesses tax the most negative effects, though differences are small. |
| Keywords: | CGE model, infrastructure, productivity |
| JEL: | D58 H54 H63 O47 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:shr:wpaper:12-10&r=tre |
| By: | Jolian McHardy (Department of Economics, University of Sheffield); Michael Reynolds (School of International Studies, University of Bradford); Stephen Trotter (Centre for Economic Policy, University of Hull) |
| Abstract: | We consider an application of the Stackelberg leader-follower model in prices in a simple two-firm network as a possible way to help resolve externalities that can be harmful to firm profit and welfare. Whilst independent pricing on the network yields lower profit and sometimes even lower welfare than monopoly pricing, we show that by allowing the firms to collude on some prices in a first-stage and set remaining prices independently (competitively) in a second stage, both profit and welfare gains can be made. |
| Keywords: | Stackelberg; pricing; network |
| JEL: | L11 L14 L51 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:19_12&r=tre |
| By: | O'Rear, Eric; Sarica, Kemal; Tyner, Wallace E. |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124837&r=tre |
| By: | Cooper, Kristen; Gorter, Harry de; Drabik, Dusan |
| Abstract: | This paper presents a general equilibrium model of the U.S. economy and estimates the optimal corn ethanol consumption subsidy and blend mandate in two different fiscal environments: a labor market with a pre-existing tax and a fixed governmental revenue requirement, and an undistorted labor market. We first derive analytical formulas for the optimal policies in a theoretical version of the model and show how the first-order welfare effect of the pre-existing labor tax changes the optimal policies. We then build a numerical version of the model and calibrate it to the U.S. economy in 2009 when both a binding ethanol blend mandate and ethanol consumption subsidy were in place. We simulate various policy scenarios in the numerical model, and we find that the optimal ethanol tax credit or blend mandate is zero if the fuel tax is held fixed and the marginal external cost of emissions is about $25/tC. Through several related approaches, the paper shows how fiscal interaction effects raise the cost of the ethanol policies and make it less likely, for any given parameterization, that a positive ethanol policy will be optimal. |
| Keywords: | biofuel policies, ethanol mandate, ethanol subsidy, gasoline tax, greenhouse gas emissions, renewable fuel standard, second best., Research Methods/ Statistical Methods, Resource /Energy Economics and Policy, H2, Q4, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124763&r=tre |
| By: | Shawn Arita (Department of Economics, University of Hawaii at Manoa); Sumner La Croix (Department of Economics, University of Hawaii at Manoa); James Mak (Department of Economics, University of Hawaii at Manoa) |
| Abstract: | China’s Approved Destination Status (ADS) policy governs foreign leisure travel by citizens to ADS-designated countries. To model the effects of ADS on Chinese visitor arrivals, we specify a model of demand for a representative Chinese consumer who values trips to n differentiated foreign destinations. Using panel data for Chinese visitor arrivals for 61 countries from 1985 to 2005, we estimate fixed effects models accounting for selection effects and a semiparametric matched difference-in-differences (DID) model. The semiparametric matched DID estimates indicate that ADS increased Chinese visitor arrivals annually by 10.5 to 15.7 percent in the three-year period following ADS designation. |
| Keywords: | Approved Destination Status, ADS, China, Tourism |
| JEL: | F13 F14 L83 |
| Date: | 2012–06–13 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:201212&r=tre |
| By: | Antoine Dechezleprêtre (Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science); Richard Perkins (Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science and Department of Geography and Environment, London School of Economics and Political Science); Eric Neumayer (Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science and Department of Geography and Environment, London School of Economics and Political Science) |
| Abstract: | This article examines the impact of environmental regulation within countries as well as regulatory distance between countries on international technology transfer. We employ a recently-assembled dataset of automobile emission standards and corresponding data on non-resident patent filing of automotive environmentally sound technologies (ESTs) in 49 countries between 1992 and 2007. Our analysis shows that an important factor shaping transfers is relative regulatory distance in that countries are more likely to receive newly-innovated technologies from source countries whose regulatory standards are “closer” to their own. Absolute stringency matters as well, consistent with conventional wisdom, although raising domestic environmental standards as such only leads to higher inflows of ESTs in developing countries. Novel to the literature, we show that regulatory standards in the third markets of a country's trading partners also influence transfers: countries receive more ESTs from a specific source country where they export more to markets whose regulatory standards are similar to those of the source country of the transferred technologies. As concerns both domestic regulation and regulation in a country’s major export markets, it is therefore regulatory distance that matters most rather than absolute regulatory levels. |
| Keywords: | Pollution Control Technologies, Environmental Regulation, International Technology Diffusion |
| JEL: | O33 Q53 Q55 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.33&r=tre |
| By: | Huric Larsen, Jesper Fredborg |
| Abstract: | Entry of new firms can be difficult or even impossible at capacity constrained facilities, despite the actual cost of entering is low. Using a game theoretic model of incumbent firms’ pricing behaviour under these conditions, it is found that under the assumption of Bertrand competition and firms having different costs, the optimal pricing behaviour imply price stickiness and upward pricing. The findings further suggest a competitive behaviour of incumbents of disposing weaker opponents only if, it leads to weaker competitors entering the market and to use weaker opponents to shelter the incumbent. The results propose a new explanation of the mixed empirical findings on incumbent pricing to entry and suggest that competition authorities should use an effect-based approach to detect the behaviour. |
| Keywords: | Pricing behaviour; capacity constrained; congestion; game theory; competition policy; regulation; games of incomplete and asymmetric information; Bayesian equilibrium |
| JEL: | D21 L11 D43 |
| Date: | 2012–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39362&r=tre |