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on Transport Economics |
| By: | Dumortier, Jerome; Kent, Matthew; Payton, Seth |
| Abstract: | In the United States, the road infrastructure funding is declining due to an increase in fuel efficiency and the non-adjustment of fuel taxes to inflation. Propositions to tax plug-in vehicles have been proposed or implemented in several states. Those propositions are contrary to policies to promote the sale of fuel efficient vehicles. This paper assesses (1) the magnitude of the decline in federal fuel tax revenue caused by plug-in vehicles and (2) quantifies the amount of revenue that could be generated from a federal plug-in vehicle registration fee. We find that the contribution of plug-in vehicles to the decline of the federal fuel tax revenue is at most 1.56% and that the majority of the shortfall can be attributed to the non-adjustment of the fuel tax rate by 2040. An additional tax of $50-$200 per plug-in vehicle per year in the reference case would generate $188-$745 million in 2040 which represents an increase of 1.7% - 6.7% in federal fuel tax revenue compared to no tax. The lesson for policy makers is that plug-in vehicles do not contribute significantly to the funding shortfall in the short- and medium-run and a supplemental tax would generate a small percentage of additional revenue. |
| Keywords: | Plug-in hybrid vehicles, battery electric vehicles, gasoline tax, diesel tax, fuel consumption, Highway Trust Fund, taxation, Environmental Economics and Policy, Resource /Energy Economics and Policy, H23, C63, Q38, Q47, |
| Date: | 2015–04–21 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iuspea:202177&r=tre |
| By: | Choi, Young-Young; Liu, Yizao; Huang, Ling |
| Abstract: | In this paper, we formulate and estimate a mixed logit model of consumer vehicle choices with micro-level data to examine the effect of safety concerns on their vehicle choices, especially on the preference for various vehicle characteristics linked to vehicle safety (MPG, weight, size, etc). Further, using the demand estimates, we simulate consumers’ vehicle choices under alternative fuel economy standards that will result in new product offerings from automakers. We then calculate and compare the welfare change for consumers with different safety concerns. The estimation results suggest that consumers’ safety concerns have significant impacts on their vehicle choices and their preference over safety-related vehicle characteristics. |
| Keywords: | Corporate Average Fuel Economy (CAFE) standards, a mixed logit, traffic safety, fuel economy, consumers' vehicle choices, Demand and Price Analysis, Industrial Organization, Resource /Energy Economics and Policy, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205797&r=tre |
| By: | Denicoff, Marina R.; Prater, Marvin E.; Bahizi, Pierre |
| Abstract: | America’s farmers depend on transportation as the critical link between the fields of growers and the tables of consumers,both here and abroad. Transportation is a derived demand because the production and consumption of an agricultural commodity create the demand for transportation services. As such,it is an essential part of marketing,any change in supply or demand of the underlying commodity or commodities that compete for transportation services can affect the transport system’s efficiency by bringing about either shortages or surpluses in transportation capacity. This report examines transportation implications of the recent trends and outlook for U.S. corn. |
| Keywords: | corn, grain, transportation, Agribusiness, Marketing, |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uamsrr:183141&r=tre |
| By: | Denicoff, Marina R.; Prater, Marvin; Bahizi, Pierre |
| Abstract: | U.S. soybean farmers depend on transportation as the critical link between their fields and markets here and abroad. Since the early 1990s, U.S. soybean farmers have been responding to world demand for more protein feed for the growing meat and poultry sectors in developing economies, especially China. This report examines transportation implications of the recent trends and outlook for U.S. soybeans. Most U.S. soybeans are grown in the Upper Midwest and the Corn Belt. During the last 10 years, over 40 percent of production was exported on average each year, relying on barge and rail transportation to be shipped to port. Domestic demand by the livestock and poultry sectors is serviced by truck and rail. The United States is losing its world market share to South America which has lower cost of production, increasing the importance of U.S. transportation efficiency to competitiveness. The majority of soybean exports are shipped through the Mississippi Gulf Coast (60 percent of 2013 soybean exports), but when the spread of ocean shipping cost between the Mississippi Gulf Coast and the Pacific Northwest (PNW) exceeds $30, it generally leads to a greater proportion of Asia-bound soybeans being shipped by rail to ports in the PNW. The ocean rate is the main driver for the choice of port for export, because inland barge transportation to the Mississippi Gulf is usually more efficient and less expensive than rail. |
| Keywords: | soybean, rail, transportation, export, shipping, Agribusiness, Marketing, |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uamsrr:187160&r=tre |
| By: | Ioannis Tikoudis (VU University Amsterdam, the Netherlands) |
| Abstract: | The paper presents a polycentric general equilibrium model with congestion externalities and distortionary labor taxation calibrated to fit the key empirical regularities of the regional economy and transport system of Randstad conglomeration. In line with more stylized models, marginal external cost pricing (i.e. a quasi first-best Pigouvian toll that ignores the pre-existing taxation in the labor market) is shown to generate considerable welfare losses. Surprisingly, the quasi first-best Pigouvian toll is welfare decreasing even when the road tax revenue is used to finance labor tax cuts. This is due to the large deviation of marginal external costs from the optimal toll levels, as the latter are found to be negative in many of the network links. Approximations of the key double-dividend effects show that, in those links, the tax interaction effect is strong enough to outweigh both the revenue-recycling and the Pigouvian effect. |
| Keywords: | applied general equilibrium; network; road pricing; commuting; polycentricity; environmental taxation; double-dividend |
| JEL: | D58 H21 H23 C63 R13 R40 |
| Date: | 2015–07–23 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20150085&r=tre |
| By: | Liao, Kenneth; Pouliot, Sebastien |
| Abstract: | This study uses E85 sales data to estimate motorists’ preference for ethanol. We apply a theoretical choice model linking the volume of E85 sold by a station to the underlying distribution of willingness to pay for E85 instead of traditional gasoline (E10) among motorists with flexible-fuel vehicles (FFVs). We estimate the model using instrumental variables techniques to control for the endogeneity of prices. We find that the average flex motorist switches to E85 when it is discounted by $0.57 per gallon in energy-equivalent dollars, but preferences are diverse, and about 11 percent of motorists choose E85 when the two fuels are priced equally in energy-adjusted terms. Our estimates of the demand for E85 provide new evidence of the potential demand for ethanol beyond the E10 blend wall. |
| Keywords: | Renewable fuels, alternative fuels, biofuels, ethanol, E85, flexible-fuel vehicles, consumer choice, imperfect substitutes, Demand and Price Analysis, Resource /Energy Economics and Policy, Q42, R41, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205473&r=tre |
| By: | Taylor, April |
| Abstract: | The agricultural community uses the ocean transportation network extensively to serve its global customers. In calendar year 2011, 80 percent of U.S. agricultural exports 146.5 million metric tons), and 78 percent of imports (40.7 million metric tons) were waterborne. The Agricultural Port Profiles rovide a view of the top 20 U.S. ocean ports moving agricultural export and import traffic. The Profiles provide detailed information on commodities moved, shipping lines used, and destination and origin countries. |
| Keywords: | Agriculture, shipping, port, export, import, ocean shipping, Agribusiness, Marketing, |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uamsrr:157486&r=tre |
| By: | Prater, Marvin; Sparger, Adam |
| Abstract: | Transportation costs have a direct impact on agricultural producers’ profits. Agricultural producers in remote areas have few transportation alternatives, and the price they receive for their products is net of transportation and other marketing and handling costs. When producers and marketers of agricultural products believe the rates they are paying for transportation are too high or uncompetitive, they need access to a dispute-settlement mechanism that is fair, easily understood, accessible, and affordable. Agricultural shippers believe the formal procedures for challenging unreasonable rail freight rates available through the Surface Transportation Board (STB) are too lengthy and expensive, with the risk not being worth the reward, effectively preventing them from accessing meaningful rate relief. Also, although affected by rail rates, agricultural producers do not have access to STB rate-challenge procedures because they typically do not ship their products to the ultimate consumer, but rather sell them to agribusinesses that arrange for transportation to the final customer. Mediation and arbitration of agricultural rail rates offer alternatives to formal STB procedures. A less formal rail rate mediation/arbitration system could potentially provide a fairer and lower cost approach to challenging rail rates. The Montana Grain Growers Association, Montana Farm Bureau Federation, and BNSF Railway Company (BNSF) have developed rail rate mediation/arbitration procedures that can be accessed by producers. Although this system is a step forward, it is limited to only one State and one railroad; no other major railroad thus far has been willing to arbitrate rail rates. A national-level rail rate mediation/arbitration system that is simple and cost-effective is needed to provide a fair and impartial forum for all grain producers and shippers. |
| Keywords: | rail, railroad, mediation, arbitration, rates, grain, Agribusiness, Agricultural and Food Policy, Marketing, |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uamsrr:165927&r=tre |
| By: | Mustafizur Rahman; Khaleda Akhter; Naimul Gani Saif |
| Abstract: | This working paper embodies the results of trade and transport facilitation audit which was carried out in the Bangladesh context, as part of a South Asian regional study. The study documents the major developments taking place in the concerned areas as also the planned initiatives, and identifies some of the key emerging needs. The paper argues that, for Bangladesh to be competitive in the backdrop of the evolving regional and global trading scenario, there is no alternative to building a modern and efficient trade and transport facilitation system. Such a system will benefit all relevant stakeholders including consumers, producers and entrepreneurs, and also the entire economy. The paper draws attention to the need for mobilising the needed resources to address the formidable gaps in this regard. |
| Keywords: | Bangladesh, India, trade facilitation, transport |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:pdb:opaper:110&r=tre |
| By: | Prater, Marvin; Sparger, Adam |
| Abstract: | Grain and railroads have an interdependent relationship. Grain is one of the most important commodities for railroads. It is the primary agricultural commodity moved by rail, comprising 7.9 percent by tons of all commodities, 94 percent by tons of all farm commodities, and 8.4 percent of total rail revenue in 2009. In turn, railroads represent a vital component of the grain network, hauling 33 percent of all grain transported in the United States in 2007. As domestic and export markets have evolved, railroads have continuously made efficiency strides through shuttle trains and the length of haul. Since 1994, grain and oilseed transportation has moved from small shipment sizes to shuttle-size shipments (75 or more railcars) for many grains and oilseeds, reflecting the lower costs of shuttle-size shipments, an increase in the number of domestic destinations capable of unloading shuttle-size shipments, and increased grain and oilseed exports in some years. In addition, the length of haul has increased for grains and oilseeds, reflecting competitive advantages of rail compared to truck on longer hauls, lower rail tariffs per mile for longer hauls, and changing grain and oilseed markets. However, development of the shuttle market has occurred differently among grain types and has not been explored at the individual commodity level. This paper uses the Surface Transportation Board Confidential Waybill Samples to quantify the changes in shipment size and length of haul for each major grain and oilseed (corn, soybean, wheat, sorghum, and barley) from 1994 to 2009. Changes in shipment size and length of haul are compared to production and usage changes for each of the major grains and oilseeds to gain more insight into the underlying reasons behind the changes. This procedure improves upon earlier analyses of the grain shuttle-size market by exploring the changes at the individual commodity level. The shuttle market for each grain has developed differently because exports, production, and usage have been different despite the overall push towards larger and longer hauls by the railroads in order to maximize efficiency. In 1994, the dominant size of shipment for all 5 grains was 6 to 49 railcars. However, there were initial differences in the lengths of haul: corn, soybeans, and barley were hauled mostly between 20 and 500 miles in 1994, but wheat and sorghum were hauled between 501 and 1,000 miles. By 2009, corn and soybeans were mostly hauled more than 1,500 miles, but the predominant category for each of the other grains did not change. Wheat has been the most consistent of the five grains over the period of study with very little change in exports, production, or usage. As such, it has had the fewest changes in shipment size or length of haul; the dominant shipment size and length of haul have remained the same throughout the time period. In contrast, a production increase in corn and soybeans due to corn-based ethanol and soybean exports has led to more shuttle-sized shipments of these commodities. Exports, the rise of large dairies, and a shift in animal production to regions distant from corn and soybean production regions have resulted in lengths of haul in excess of 1,500 miles becoming predominant. Soybeans have had the most dramatic change in length of haul because of increased exports and shipments to large animal feed regions which are not as susceptible to truck competition, as evidenced by rail’s increase in market share. On the other hand, corn’s length of haul has been mostly more than 1,500 miles only since 2008 when more ethanol plants were built, leading to stronger truck competition for the shorter movements to ethanol facilities and taking away some of rail’s share. Shuttle markets have developed differently for sorghum and barley despite decreased production in both. Sorghum for ethanol production and a higher percentage of exports among total usage have led to an increase in shuttle-sized shipments even though less is being exported overall. Barley production has declined due to corn and soybeans being more profitable, and barley exports have declined without a strong export demand. The predominant barley shipment size of 6 to 49 railcars and length of haul between 20 and 500 miles makes rail shipment of barley more susceptible to truck competition and has caused rail to lose market share over the time period. |
| Keywords: | grain, shipment, distance, rail, truck, transport, Agribusiness, Marketing, |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uamsrr:161208&r=tre |
| By: | Prater, Marvin; O'Neil, Daniel Jr. |
| Abstract: | For most commodities examined in this paper, (grain and oilseeds, fertilizer, food products, grain mill products, and soymeal), inflation-adjusted rail rates (in 2011 dollars) increased from 2004 through 2011, although to different extents, depending on shipment characteristics. Shipments of some commodities had consistently higher rail rates, measured in cents per ton-mile, throughout the period. While rail rates for the various shipment sizes fluctuated differently over the period, rates for many of the shipment distances began rising between 2002 and 2004. In general, smaller shipments have noticeably higher rates than large shipments. Likewise, shipments moving longer distances normally have lower rates per ton-mile than shipments moving over shorter distances. However, agricultural commodity movements vary by shipment size and distance traveled. For instance, most grain mill products move in smaller shipments (less than 50 cars), with occasional large shipments. Grain and oilseeds, on the other hand, consistently move in shipments of all sizes and travel a large variety of distances. |
| Keywords: | grains, oilseeds, rail, rates, shipment, Agribusiness, Marketing, |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uamsrr:172987&r=tre |
| By: | Mack, Dan |
| Keywords: | Agricultural and Food Policy, International Relations/Trade, |
| Date: | 2015–02–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:usao14:205016&r=tre |
| By: | Okwelum, Edson |
| Abstract: | Measuring consumer response to gasoline price changes is a fundamental issue in the design and regulation of environmental externalities. In this paper, we document the importance of accounting for heterogeneity in consumer utilization of durable goods in explaining the apparent undervaluation of future fuel costs. We develop a Bayesian method within the context of heterogeneous discrete choice model paired with pricing equations derived from Bertrand competition to estimate heterogeneous demand elasticity for gasoline price changes, and use our results to conduct counterfactual analyses of alternative tax policies. We find that accounting for heterogeneity in utilization and other dimensions all but eliminates undervaluation of future operating costs. Results from our counterfactual analyses imply that gasoline taxes lead to welfare increases that are 20% higher than those obtained under a fuel economy regime. |
| Keywords: | Bayesian Econometrics, Heterogeneity, Gasoline Prices, Gasoline Policy, Simulation, Resource /Energy Economics and Policy, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205897&r=tre |
| By: | Grigsby, Chuck; Hellwinckel, Chad; Lambert, Dayton; Yu, Edward |
| Abstract: | Fresh produce in the United States often travels thousands of miles in diesel operated semi-trucks before arriving to market. Under a high fuel cost scenario, the current low cost, efficient supply chain could become a high cost organizational structure for US food distribution. Rising transportation costs of food sourced from distant locations may provide competitive opportunities for small- and mid-sized local producers if transportation costs are a smaller portion of their total costs. Farmers selling fresh produce in east Tennessee farmer markets are surveyed to obtain baseline information on their transportation energy use to deliver their products to market. Local farmers’ energy use is compared to three conventional transportation scenarios for fruits and vegetables grown in California, Texas, and Florida. A comparative analysis of conventional and local transportation energy consumption serves as an indicator of whether local farmers’ locational advantage in accessing nearby markets could open competitive opportunities over the conventional food supply chain in a high fuel cost scenario. |
| Keywords: | Local food, Transportation, Energy use, Food distribution, Agricultural and Food Policy, |
| Date: | 2015–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea15:197541&r=tre |