nep-tre New Economics Papers
on Transport Economics
Issue of 2012‒11‒03
eleven papers chosen by
Erik Teodoor Verhoef
VU University Amsterdam

  1. Taxation and public service provision: Taxes on road transport and fuel in Congo By Kambale Mirembe, Omer
  2. Deviations in Kilometres Travelled: The Impact of Different Mobility Futures on Energy Use and Climate By Thomas Longden
  3. Driving Up Wages: The Effects of Road Construction in Great Britain By Rosa Sanchis-Guarner
  4. The Large Scale Roll-Out of Electric Vehicles: The Effect on the Electricity Sector and CO2 Emissions By Talaei, A.; Begg, K.; Jamasb, T.
  5. Interregional Trade of High-value Fruits and Vegetables: Issues on Transport and Shipping By Llanto, Gilberto M.; Quimba, Francis Mark A.; Sombilla, Mercedita A.
  6. Asymmetric Price Adjustments in Airlines By Escobari, Diego
  7. The Impact of Trade Liberalization and Economic Integration on the Logistics Industry: Maritime Transport and Freight Forwarders By Llanto, Gilberto M.; Navarro, Adoracion M.
  8. Using prospect theory to investigate the low marginal value of travel time for small time changes By Hjorth, Katrine; Fosgerau, Mogens
  9. The Impact of Infrastructure on Agricultural Productivity By Llanto, Gilberto M.
  10. El Tax Credits Response to Tax Enforcement: Evidence from a Quasi-Experiment in Chile By Claudio Agostini
  11. What caused the failure of nationalisation of the railway system in Germany? : Malfunction of the German Imperial Railway Office (Reichseisenbahnamt) in the 1870s and 1880s. By Ayumu Banzawa

  1. By: Kambale Mirembe, Omer
    Keywords: Taxation, DRC, Congo
    Date: 2012–10
    URL: http://d.repec.org/n?u=RePEc:iob:wpaper:2012006&r=tre
  2. By: Thomas Longden (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center for Climate Change)
    Abstract: The importance of a focus on mobility and the kilometres travelled using light duty vehicles is reflected in the persistence of strong demand for personal mobility and emissions that tend to be linked with population and economic growth. Simulation results using the WITCH model show that changes in the kilometres driven per year using light duty vehicles have a notable impact on investments in alternate transport options. As a result, different mobility futures have notably different optimal vehicle fleet compositions. As climate policy becomes more stringent, achieving abatement with increased mobility implies large investments in battery related technologies and less investments in technologies related to the conversion of biofuel from biomass. Climate policy consistent with a 2°C temperature increase above pre-industrial levels in 2100 leads to a quick transition to plug-in hybrid drive vehicles. Without decreases in mobility trends the cost effective achievement of such a target results in the electrification of passenger vehicles commencing between 2020 and 2035.
    Keywords: Light Duty Vehicles, Transportation, Mobility, Climate Change Policy, Electric Drive Vehicles, Research and Development
    JEL: Q54 R41 O3
    Date: 2012–10
    URL: http://d.repec.org/n?u=RePEc:fem:femwpa:2012.71&r=tre
  3. By: Rosa Sanchis-Guarner
    Abstract: This paper estimates the effects of road construction on individual labour market outcomes using micro-data from Great Britain between 2002 and 2008. To capture these effects, I use a measure of accessibility to employment through the road network at a very detailed geographical level. I test the effect of accessibility changes on weekly wages and hours worked. In order to tackle potential sources of bias, I use an instrumental variable which exploits the variation in employment accessibility stemming only from changes in minimum travel times between locations. I argue that, conditional on controls, small scale spatial variation in the accessibility impact of road construction can be considered to be exogenous because road schemes are aimed to improve connectivity and reduce congestion for wider and more distant areas. I further use home and work location specific individual fixed-effects to control for endogenous sorting of workers and I also restrict the sample to workers who are located very close to the projects. I find a positive impact of accessibility from work location on weekly wages and total hours worked but no effect of accessibility from home neither on wages nor hours, conditional on commuting time. These effects are not due to selection into employment as a result of road construction. I also find evidence of accessibility from home reducing commuting travel time. Increased spatial competition or agglomeration externalities are potential explanations for the findings.
    Keywords: Job accessibility, labour markets, roads, spatial sorting
    JEL: J31 R12
    Date: 2012–10
    URL: http://d.repec.org/n?u=RePEc:cep:sercdp:0120&r=tre
  4. By: Talaei, A.; Begg, K.; Jamasb, T.
    Abstract: The UK government has set the ambitious targets of 20 and 50% reduction in greenhouse gas emissions by 2020 and 2050 respectively. The transport sector accounts for 21% of total CO2 emissions in the UK and can, therefore, be important for achieving the emissions reduction targets. Within the transport sector, electric vehicles (EV) are considered as one of the important mitigation options. However the effect of EVs on emissions and the electricity sector is subject to debate. We use scenario analysis to investigate the emission reduction potential of EVs and their interaction with electricity sector. We show that managing the charging patterns could reduce adverse effects of EVs on the electricity sector while the number of EVs remains the factor affecting the mitigation potential. Our findings indicate that in the UK, by 2030, EVs could result in up to 32% emissions reduction compared to advanced internal combustion engines. We also found that the need for new electricity generation and distribution capacity to meet the conventional electricity demand and demand from EVs could be reduced by up to 12% from 70.6 to 61.8 GW if the EV’s electricity demand is managed.
    Keywords: Electric Vehicles, CO2 Emissions, Electricity Demand Management
    Date: 2012–10–26
    URL: http://d.repec.org/n?u=RePEc:cam:camdae:1246&r=tre
  5. By: Llanto, Gilberto M.; Quimba, Francis Mark A.; Sombilla, Mercedita A.
    Abstract: <p>The study focuses on the transport of vegetable and fruit produce from Mindanao, a major food producing area, to particular regions in Luzon and Visayas to meet increasing market demands. The estimated gravity model showed the key determinants of interregional trade. Economic growth in both sending and recipient regions is necessary for interregional trade to flourish. Economic growth and interregional trade are anchored on access to markets by various economic agents, which is facilitated by the presence of hard and soft infrastructure that make interregional exchange possible.</p><p>Because distance drives up transport and marketing costs, the necessity of a good network of roads and ports that links production areas to consumer markets cannot be underestimated. The lack of an efficient transport and distribution system increases the cost of transporting agricultural produce, reduces the quality and quantity of those goods, and diminishes the profitability of actors involved in the supply chain. Inadequacy of infrastructure has been a major reason for the country`s lack of competitiveness and attraction as a viable and profitable business destination.</p><p>There is a scope for government intervention at two levels. At the macro level, government has a critical role to play in increasing investments in roads and ports, portside facilities, and related investments; in improving monitoring and coordination of markets; and in ensuring effective regulation at the national and local level.</p>
    Keywords: interregional trade, Philippines, supply chain, logistics, transport, gravity model, shipping
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2012-08&r=tre
  6. By: Escobari, Diego
    Abstract: This paper uses a unique daily time series data set to investigate the asymmetric response of airline prices to capacity costs driven by demand fluctuations. We use a Markov regime-switching model with time-varying transition probabilities to capture the time variation in the response. The results show strong evidence of asymmetric price adjustments: positive cost shifts have a large positive effect, while negative cost shifts have no effect. The asymmetry is also explained by summer travel, but not by the size of cost shifts. The findings show the importance of consumer heterogeneity and capacity constraints as a source of asymmetric responses.
    Keywords: Asymmetric pricing; Airlines; Regime switching; Capacity costs
    JEL: L93 C22
    Date: 2012–10–21
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:42115&r=tre
  7. By: Llanto, Gilberto M.; Navarro, Adoracion M.
    Abstract: <p>The ASEAN Economic Community Blueprint targets an ASEAN single market in 2015. This is an ambitious reform agenda that seeks to ensure the free flow of services, investment, and skilled labor along with the free flow of goods and the freer flow of capital in the ASEAN region. For logistics services, the target is to be achieved by 2013. Liberalization and deregulation efforts in the Philippine maritime transport industry are already heading into the direction of greater participation in ASEAN economic integration even though the AEC measures have not yet been formally sanctioned by all members.</p><p>This paper examines the current status of the logistics industry in the Philippines and finds out how the opening of the economy to global markets through trade and service liberalization, and now ASEAN economic integration whose culmination is the ASEAN Economic Community in 2015, impacts on the structure, conduct, and performance of the logistics industry. The industry is responding to the changes in a positive way notwithstanding its characterization as a concentrated industry dominated by a few domestic firms. Firms have become more innovative in offering quality service to consumers such as better passenger accommodation, improved ticketing system, and availability of fast-craft ferries.</p><p>Freight forwarders, at least those surveyed for this study, equip themselves with information on how to adjust to a more liberalized and integrated environment. They are aware of the changes to be brought about by the AEC measures when they are fully implemented and they also have a good idea of the challenges they will face when they decide to locate in an ASEAN member country, e.g., differences in commercial practices, legal systems, and contracting procedures. The way forward involves continuing the market-oriented reforms especially liberalization of trade in services, while ensuring a healthy balancing of domestic industry interests with the requirements of economic regional integration.</p>
    Keywords: economic integration, Philippines, maritime transport, logistics, freight forwarders, liberalization in services, cabotage, ASEAN Economic Community Blueprint, domestic shipping
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2012-19&r=tre
  8. By: Hjorth, Katrine; Fosgerau, Mogens
    Abstract: A common finding in stated preference studies that measure the value of travel time (VTT) is that the measured VTT increases with the size of the time change considered, in conflict with standard neoclassical economic theory. We present a new test of a possible explanation for the phenomenon that builds on the diminishing or constant sensitivity of the value functions in prospect theory. We use stated preference data with trade-offs between travel time and money that provide separate identification of the degrees of diminishing sensitivity for time and money gains and losses. This enables us to test and potentially falsify the prospect theory explanation. We conclude that prospect theory remains a potential explanation of the phenomenon.
    Keywords: Value of travel time; Stated preference data; Prospect theory; Small time savings
    JEL: D12 C35 R41
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:42246&r=tre
  9. By: Llanto, Gilberto M.
    Abstract: <p>Recent literature indicates the significant role played by rural infrastructure in improving agricultural productivity in developing economies. While the availability and quality of rural infrastructure are never substitutes to efficient macroeconomic and agriculture-specific policies and the effective implementation of such policies, inadequate infrastructure can be a significant constraint to growth and productivity. Rural infrastructure, like other public investments, raises agricultural productivity, which in turn induces growth in the rural areas, bringing about higher agricultural wages and improved opportunities for nonfarm labor. The rise in agricultural productivity, which reduces food prices, benefits both urban and rural inhabitants who are net food buyers. Thus, aside from its growth benefits, agricultural productivity has significant poverty-reduction effects.</p><p>The paper`s overall empirical results indicate a significant link between rural infrastructure and agricultural productivity. Electricity and roads are significant determinants of agricultural productivity. This is consistent with a related finding on the constraints imposed on growth by inadequate infrastructure. Rural roads provide the important connectivity with growing markets adjacent to rural areas; they also lessen input costs and transaction costs of rural producers and consumers. Access to electricity creates various income-earning opportunities for rural households.</p>
    Keywords: agricultural productivity, poverty reduction, rural infrastructure, transaction costs, connectivity, regional convergence
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2012-12&r=tre
  10. By: Claudio Agostini (Escuela de Gobierno, Universidad Adolfo Ibáñez)
    Abstract: Diesel in Chile receives a different tax treatment depending on its use. If diesel is used in industrial activities the diesel taxes paid can be fully used as a credit against VAT, but if it is used in freight or public transportation (basically trucks and buses) only a fraction of diesel taxes paid can be used as a credit against VAT. As a result of this different tax treatment firms have incentives to use “tax exempted” diesel in activities requiring “non tax exempted” diesel. This tax wedge therefore generates and opportunity for tax evasion. In this paper we analyze the impact of a tax enforcement program implemented by the Chilean IRS, where letters requiring information about diesel tax credits were sent to around 200 firms in 2003. Using different empirical strategies to consider the non-randomness of the selection of firms, we find that firms receiving a letter decreased their diesel tax credits by around 11%.
    Date: 2012–01
    URL: http://d.repec.org/n?u=RePEc:uai:wpaper:inv001&r=tre
  11. By: Ayumu Banzawa (Graduate School of Economics, Osaka University)
    Abstract: This paper identifies the causes of failure of the nationalisation of the German railway system by the Imperial Railway Office (das Reichseisenbahnamt; REA) that was established during 1873-1874 under the order of Otto v. Bismarck, the first Imperial Chancellor (Reichskanzler). The REA was not able to keep railways in the Reich (unified Germany) under its perfect control as provided by the German Imperial Constitution. What impeded the REAfs mission? We must pay attention to the REAfs problems as an organisation. As the official documents of the REA suggested, the organisation was not free from bureaucratic inflexibility in both structural and personal matters. Furthermore, compared with the other railway administration bodies in Germany in the 19th century, I point out the REAfs incapability in collecting regional information. The REA, the central bureau in the German-Prussian capital, had no regional unit. Its top-heavy structure and the higher-ups in the bureaucracy did not collect the non-lettering information from those who were doing the actual work at each railway, and this caused a criticized edisproportionate emphasis on documentsf. To illustrate this point, I focus on the failure by the REA in playing the leading role in compiling the first German national railway statistics.
    Keywords: Railways, Germany, Nationalisation, 19th century
    JEL: N43 N73
    Date: 2012–10
    URL: http://d.repec.org/n?u=RePEc:osk:wpaper:1218&r=tre

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