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on Transport Economics |
| By: | Eric Kroes (Significance, The Hague, and VU University Amsterdam, the Netherlands); Paul R. Koster (VU University Amsterdam, the Netherlands); Stefanie Peer (VU University Amsterdam, the Netherlands, and Vienna University of Economics and Business, Austria) |
| Abstract: | This paper develops a practical approach to estimate the benefits of improved reliability of road networks. We present a general methodology to estimate the (changes in) scheduling costs due to (changes in) travel time variability for car travel. We focus on situations where only mean delays are known, which are the typical output of a standard transport model. We show how to generate travel time distributions from these mean delays, which we use to estimate the scheduling costs of the travellers, taking into account their optimal departure time choice. We illustrate the methodology for car access by air passengers to Amsterdam airport and show how improvements of the highway network lead to shorter expected travel times, lower travel time variability, later departure times and reduced access costs. We find that on average the resulting absolute decrease in access costs per trip is small, mainly because most air passengers drive to the airport outside the peak hours. However, the relative reduction in access costs due to improvements in network reliability is substantial. For every 1-Euro reduction in mean travel time costs, there is an additional cost reduction of about 0.75-0.85 Euro due to lower travel time variability and hence lower scheduling costs. Our results thus show that the total benefits from infrastructure improvements are about 80% higher when benefits due to better reliability are taken into account in addition to the savings in mean travel time alone. |
| Keywords: | Value of reliability, Airport access, Dynamic accessibility, Travel time variability, Network reliability |
| JEL: | R40 R41 R42 R49 |
| Date: | 2014–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20140130&r=tre |
| By: | Olaf Merk |
| Abstract: | This working paper offers an evaluation of the performance of ports of Antofagasta, an analysis of the impact of the ports on their territory and an assessment of policies in this field. It examines port performance over the last decades and identifies the principal factors that have contributed to it. The effect of the port on economic and environmental questions is studied and quantified where possible. The major policies governing the ports are assessed, along with policies governing transport and economic development, the environment and spatial planning. Based on the report’s findings, recommendations are proposed with a view to improving port performance and increasing the positive effects of the ports of Antofagasta. |
| Keywords: | transportation, regional growth, inter-regional trade, regional development, ports, urban growth |
| JEL: | D57 L91 R11 R12 R15 R41 |
| Date: | 2013–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaab:2013/15-en&r=tre |
| By: | Martijn I. Dr�es (VU University Amsterdam); Piet Rietveld† (University of Amsterdam) |
| Abstract: | We examine the effect of railway travel on urban spatial structure in a polycentric urban land use model. We focus on the role of access to the railway network. We find that if the number of train stations is limited, the degree of urbanization is higher around train stations, but the effect of railway travel on road congestion is small. By contrast, if train stations are omnipresent there is little effect on urban spatial structure, but a considerable decrease in congestion. With regard to the supply of train stations, these findings suggest that there is an important policy trade-off between congestion and urbanization. |
| Keywords: | general equilibrium; public transport; land use model; railway; sorting |
| JEL: | C68 D58 R13 R14 R4 |
| Date: | 2014–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20140050&r=tre |
| By: | Marten van den Bossche; Olaf Merk; Jing Li |
| Abstract: | This working paper offers an evaluation of the performance of the inland ports of the Slovak Republic within the framework of the Danube Axis, an analysis of the impact of the ports on their territory and an assessment of policies in this field. It examines port performance over the last decades and identifies the principal factors that have contributed to it. The effect of the port on economic and environmental questions is studied and quantified where possible. The major policies governing the ports are assessed, along with policies governing transport and economic development, the environment and spatial planning. Based on the report’s findings, recommendations are proposed with a view to improving port performance and increasing the positive effects of the inland ports of Slovak Republic. |
| Keywords: | transportation, regional growth, inter-regional trade, regional development, ports, urban growth |
| JEL: | D57 L91 R11 R12 R15 R41 |
| Date: | 2013–09–27 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaab:2013/14-en&r=tre |
| By: | Frank Van Nieuwenhove (National Bank of Belgium, Microeconomic Information Department) |
| Abstract: | This study assesses the economic importance of air transport and airport activities in Belgium in terms of value added, employment and investment over the 2009-2012 period 1 . The sector considered embraces not only the activities directly connected with air transport, but also all the activities that take place on site at the six Belgian airports (Antwerp, Brussels, Charleroi, Kortrijk, Liège and Ostend). The study reviews the direct and indirect effects of the sector on the basis of microeconomic data (mainly obtained from the Central Balance Sheet Office) and macroeconomic data (from the National Accounts Institute). It also includes an analysis of the social balance sheet and certain ratios using Central Balance Sheet Office data. In 2012, air transport and airport activities generated € 5.6 billion in direct and indirect value added (i.e. 1.5 % of Belgian GDP) and employed 66,200 people in full-time equivalents (FTEs) either directly or indirectly (1.7 % of domestic employment). Brussels Airport is the country’s biggest airport in terms of passenger traffic, but has seen its leading position somewhat eroded by Charleroi, which with Ryanair has staged robust growth in the low-cost segment. Meanwhile, Liège has assumed the position of leading cargo airport and currently accounts for over half of total cargo traffic to and from Belgium. Charleroi and Liège are the fastest growing airports in terms of value added and employment. With the exception of Ostend, the Flemish regional airports have also proved resilient on both counts, while Brussels Airport may be described as holding more or less steady. |
| Keywords: | air transport, airport activities, sector analysis, indirect effects, employment, value added, investment |
| JEL: | C67 D40 J21 L93 R15 R34 R41 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:docwpp:201411-273&r=tre |
| By: | Beria, Paolo; Grimaldi, Raffaele |
| Abstract: | Transport mobility plans, especially at the urban scale, are commonly produced by administrations. However, the decisions involved are often taken on a qualitative basis or, at best, by setting some indicators and verifying how much a plan or a scenario reaches the politically decided targets (e.g. “increasing by 10% the use of bikeâ€). However, given that decisions on plans involve relevant public investments and may also determine radical changes in users’ costs, a more quantitative and comprehensive approach to the evaluation is needed. Cost Benefit Analysis is the tool commonly used to assess public expenditure, but its application to mobility plans introduces further practical and theoretical complexity. The aim of the paper is to discuss how CBA can be used to assess complex and multi-modal mobility plans (involving for example both infrastructural investments and lighter sustainable mobility policies). Firstly we will discuss which are the complexities involved by plan assessments vs. infrastructure assessments. Secondly, we will revise the available approaches, namely the Generalised Costs comparison approach, the Rule of Half and the logsum functions for the perfect integration between CBA and transport models. Thirdly, we will comment the main advantages and problems of the last approach, namely, the logsum, clarifying why it is the most suitable for the assessment of plans made of a broad range of policies and actions. Finally, we will outline an ongoing application for the assessment of the SUMP (Sustainable Urban Mobility Plan) of Milan’s municipality. |
| Keywords: | cost benefit analysis; transport planning; transport models; rule of half; logsum; Milan; Italy |
| JEL: | D61 R42 R48 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:59590&r=tre |
| By: | Fullerton, Thomas M., Jr.; Mukhopadhyay, Somnath |
| Abstract: | Border region transportation forecast analysis is fraught with difficulty. In the case of El Paso, Texas and Ciudad Juarez, Chihuahua, Mexico, dual national business cycles and currency market fluctuations further complicate modeling efforts. Incomplete data samples and asymmetric data reporting conventions further confound forecasting exercises. Under these conditions, a natural alternative to structural econometric models to consider is neural network analysis. Neural network forecasts of air transportation and international bridge activity are developed using a multi-layered perceptron approach. Those out-of sample simulations are then compared to previously published forecasts produced with a system of simultaneous econometric equations. Empirical results indicate that the econometric approach is generally more accurate. In several cases, the two sets of forecasts are found to contain complementary information. |
| Keywords: | Regional Transport Demand; Neural Networks; Econometric Forecasting |
| JEL: | C53 R41 |
| Date: | 2013–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:59583&r=tre |
| By: | Berliant, Marcus; Watanabe, Hiroki |
| Abstract: | Zipf’s law is one of the best-known empirical regularities in urban economics. There is extensive research on the subject, where each city is treated symmetrically in terms of the cost of transactions with other cities. Recent developments in network theory facilitate the examination of an asymmetric transport network. In a scale-free network, the chance of observing extremes in network connections becomes higher than the Gaussian distribution predicts and therefore it explains the emergence of large clusters. The city-size distribution shares the same pattern. This paper decodes how accessibility of a city to other cities on the transportation network can boost its local economy and explains the city-size distribution as a result of its underlying transportation network structure. |
| Keywords: | Zipf’s law; City-size distribution; Scale-free network |
| JEL: | R12 R40 |
| Date: | 2014–10–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:59448&r=tre |
| By: | Massimo Geloso Grosso; Hildegunn Kyvik Nordås; Asako Ueno; Frederic Gonzales; Iza Lejárraga; Sébastien Miroudot; Dorothée Rouzet |
| Abstract: | This paper presents the services trade restrictiveness indices (STRIs) for transport and courier services. The STRIs are composite indices taking values between zero and one, zero representing an open market and one a market completely closed to foreign services providers. The indices are calculated for 40 countries, the 34 OECD members and Brazil, China, India, Indonesia, Russia and South Africa. This report presents the first vintage of indicators for transport and courier services and captures de jure regulations in force in 2013. The STRI supports the view that these services are subject to very different regulatory frameworks and, in some cases, to a relatively elevated degree of regulation. Indices for air transport covering measures affecting commercial establishment and accompanying movement of natural persons are on average quite high (0.43), with little variation across countries. A preliminary assessment of restrictiveness in cross-border trade in the sector shows that, while some progress in easing restrictions has been achieved through open skies agreements, significant limitations remain in place. The maritime transport sector is moderately open with an average STRI of 0.25. Foreign equity restrictions are still quite common in the sector and contribute significantly to the index. Most other sector-specific restrictions are found in the cabotage market and in ports. In road freight transport, the results confirm that the domestic road freight transport regime has been significantly liberalised over the years, and currently commercial establishment in the sector is largely affected by horizontal measures. The overall level of restrictiveness is relatively low with an average of 0.16, but exhibits pretty large variation. With respect to rail freight, the STRI also supports the view that considerable reforms have been undertaken in the sector in the past decades. The average level of restrictiveness is moderate at 0.22, although two countries maintain a statutory state-owned monopoly, which implies that the sector is completely closed to foreign suppliers. Finally, for courier services the results show that the overall level of restrictiveness is moderate with a sample average of 0.26. There is, however, large variation in STRI indices among countries. The elevated levels of restrictiveness are found in countries where foreign equity restrictions or statutory monopolies exist. |
| Keywords: | services trade, courier services, transport services, services trade restrictions, regulation |
| JEL: | F13 F14 K33 L87 L91 L92 L93 |
| Date: | 2014–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaab:176-en&r=tre |
| By: | Hugo Emilio Silva (VU University Amsterdam); Robin Lindsey (University of British Columbia); Andr� de Palma (University of British Columbia, Canada); Vincent A.C. van den Berg (VU University Amsterdam, the Netherlands) |
| Abstract: | This paper investigates the existence and uniqueness of equilibrium in the Vickrey bottleneck model when each user controls a positive fraction of total traffic. Users simultaneously choose departure schedules for their vehicle fleets. Each user internalizes the congestion cost that each of its vehicles imposes on other vehicles in its fleet. We establish three results. First, a pure strategy Nash equilibrium (PSNE) may not exist. Second, if a PSNE does exist, identical users may incur appreciably different equilibrium costs. Finally, a multiplicity of PSNE can exist in which no queuing occurs but departures begin earlier or later than in the social optimum. The order in which users depart can be suboptimal as well. Nevertheless, by internalizing self-imposed congestion costs individual users can realize much, and possibly all, of the potential cost savings from eit her centralized traffic control or time-varying congestion tolls. |
| Keywords: | Bottleneck model, Large users, Atomic users, Existence of Equilibrium, Uniqueness of Equilibrium |
| Date: | 2014–06–27 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20140077&r=tre |
| By: | Edoardo Croci; Davide Rossi |
| Abstract: | Bike Sharing systems are rapidly spreading around in European cities. Bike sharing is a new type of public transportation based on the use of public bikes to cover relatively short distances in urban areas. It is used both in conjunction with traditional public transport to complete the “last mile”, or in alternative for its flexibility. Usage fees are usually very low, compared to other means of transport, as costs of service are often covered by advertising. In this work we will focus on the case of Milan where the bike sharing system, called "BikeMi", was introduced in 2008 and has already reached over 200 stations and 3.000 bikes with 1.8 million travels in 2013. The aim of the paper is to assess which attractors influence the use of bike sharing stations. The paper also examines the different effect of proximity and visibility of bike sharing stations from attractors. An econometric analysis is performed, based on the data set of use of the system and on GIS information on the position of bike sharing stations and attractors. The main results suggest that the presence of metro and train stations, universities, museums, cinema and restricted traffic areas in correspondence of bike sharing stations significantly increase use. On the other hand the presence of tram and bus stops and theatres does not and has an opposite influence. With respect to visibility, there is a positive effect for tram, bus and metro stops, theatres and cinemas. On the other hand, universities and museums show a negative correlation. The results appear robust to the inclusion of time and other possible confounding variables, such as weather conditions. The analysis supports the relevance of the role of urban planning for the best positioning of bike sharing stations and the need to carefully consider the features of surrounding environment to optimise the distribution of bike sharing stations in a territory. |
| Keywords: | bike sharing, sustainable mobility, urban mobility |
| JEL: | D04 Q58 R42 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:bcu:iefewp:iefewp68&r=tre |
| By: | Adriaan Hendrik van der Weijde (VU University Amsterdam) |
| Abstract: | This paper analyzes the effects of price differentiation and discrimination by a monopolistic transport operator, which sets fares in a congestible network. Using three models, with different spatial structures, we describe the operator’s optimal strategies in an unregulated market, a market where price differentiation is not allowed (i.e., ticket prices must be the same for all users), and a market where price discrimination is illegal (i.e., ticket prices must only differ with the marginal external costs of users), and analyze the welfare effects of uniform and non-discriminatory pricing policies. The three models allow us to consider three different forms of price differentiation and discrimination in networks: by user class, by origin-destination pair, and by route. We generalize the existing literature, in which groups usually only differ in their value of time, and hence, there is no distinction between differentiation and discrimination. In our models, users may also have different marginal external costs; we show how these two differences interact. We also show how non-differentiated and non-discriminatory policies may increase or decrease welfare, and that non-discrimination can be worse than non-differentiation. The network models show that results obtained for a single-link network can be generalized to a situation where operators price-discriminate or differentiate based on users’ origins and destinations, but not directly to a situation in which differentiation is based on route choices. |
| Keywords: | price differentiation, price discrimination, transport, networks, congestion |
| JEL: | L11 L51 L91 |
| Date: | 2014–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20140099&r=tre |
| By: | Asian Development Bank (ADB); (East Asia Department, ADB); ; |
| Abstract: | This case study documents HIV prevention work on the Longbai Expressway in Guangxi in the People’s Republic of China. It describes how to build HIV prevention into existing processes in road construction projects. It also highlights opportunities and constraints for HIV prevention work in the transport context. Finally it brings examples to show that the basic model can be adapted and replicated. |
| Keywords: | HIV/AIDS, HIV prevention, road construction, transport, road construction workers, PRC, Guangxi, ADB |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt146318&r=tre |
| By: | Ginés de Rus |
| Abstract: | Infrastructure investment is an inter-temporal decision through which society foregoes its current wellbeing for the future. In the economic assessment of this trade-off, the practical standard method is cost-benefit analysis, which compares the social benefits and costs of the decision. Furthermore, a sound exercise of economic evaluation requires an approach that incorporates other unavoidable trade-offs related to pricing, such as charging short-run vs long-run marginal cost or the consequences of budget constraints on the net social value of the investment; intermodal competition and public investment; institutional design and the choice of contracts; and in a particularly important but somewhat neglected point, the long-term consequences of investment decisions. This paper addresses the economic content of this set of essential trade-offs and discusses their inclusion in the economic evaluation of major projects. |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaddt:2014-16&r=tre |
| By: | Nyström, Johan (VTI); Lind , Hans (KTH); Nilsson , Jan-Eric (VTI) |
| Abstract: | One policy that is believed to increase the rate of innovation and the level of productivity is to move from Design-bid-build contracts (DBB) to Design-Build contracts (DB). A common view is that the latter provides the contractor more degrees of freedom to enable innovation. This hypothesis consists of two steps, first that DB actually has more degrees of freedom and secondly that more degrees of freedom leads to more innovation. This paper focuses on the first step and is based on a review of five road construction projects – two labelled DBB and three DB. It is demonstrated that there is a gap between the textbook definition of the two types of contracts and the actual design of the examples. The degrees of freedom for the contractor are restricted in both DB and DBB contracting and no significant difference in this dimension could be established. Based on this lack of difference in the five projects, the expectation of innovation for the labelled contracts cannot be settled. Some possible rational reasons for the client to restrict the degrees of freedom are also suggested. |
| Keywords: | Innovation; Contracting; Design Bid Build (DBB); Design and Build (DB) |
| JEL: | D86 H57 L74 |
| Date: | 2014–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2014_020&r=tre |