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on Transport Economics |
| By: | Laurent Franckx |
| Abstract: | Transport models used for long-term projections should reflect the impact of shared, automated and electric mobility modes. The objective of the current paper is to derive lessons from the existing literature on vehicle ownership modelling to find options to further improve the PLANET model, which is used for projections of transport demand in Belgium.PLANET is already well equipped to represent the impacts of shared and automated cars on the opportunity cost of travel time, the load factors and the annual mileage of cars. |
| Keywords: | Transport demand, Long-term forecasting, Technology diffusion, Car ownership, Automated vehicles, Electric vehicles, Shared mobility, Integrated energy-transport modelling |
| JEL: | H23 C25 L62 L9 O3 Q47 Q5 R4 |
| Date: | 2017–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:1708&r=tre |
| By: | Dimitriou , Dimitrios J. |
| Abstract: | Supply chain and logistics transport infrastructures are key components of the national asset portfolio. In most of the cases the decision to invest in a transport infrastructure is not simple, mainly, because the complications in planning process, the amount of capital need to invest before the business establishment and the high number of stakeholders involved in decision process. The decision process is more complicate in large transport infrastructure projects, where the project survivability is strongly related to financial viability as well as economic development prospects and in medium-long time horizon. This paper deals with the methodology approach to support strategic decisions about develop a new large transport infrastructure project. According a systematic approach, the analysis framework where the decision key issues are evaluated and the key messages to decision makers are presented. Conventional wisdom is to present a systematic approach appropriate to apply is relevant projects, providing the essential tool to support decisions at level of strategic planning. This paper attempts to fill gaps faced by stakeholders and decisions makers in the evaluation and decision making process of developing large transport infrastructure projects. According to a consequences analysis and systemic approach the relationship of supply chain and logistic center infrastructure development, financial viability and economic system development and stakeholder’s expectation is analyzed. The application provides the methodology outputs presenting the proposed framework for a strategic new freight infrastructure including new rail line and freight center in sea port in North Greece. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:sit:wpaper:18_2&r=tre |
| By: | Chao Luo; Yih-Fang Huang; Vijay Gupta |
| Abstract: | This paper presents a multi-stage approach to the placement of charging stations under the scenarios of different electric vehicle (EV) penetration rates. The EV charging market is modeled as the oligopoly. A consumer behavior based approach is applied to forecast the charging demand of the charging stations using a nested logit model. The impacts of both the urban road network and the power grid network on charging station planning are also considered. At each planning stage, the optimal station placement strategy is derived through solving a Bayesian game among the service providers. To investigate the interplay of the travel pattern, the consumer behavior, urban road network, power grid network, and the charging station placement, a simulation platform (The EV Virtual City 1.0) is developed using Java on Repast.We conduct a case study in the San Pedro District of Los Angeles by importing the geographic and demographic data of that region into the platform. The simulation results demonstrate a strong consistency between the charging station placement and the traffic flow of EVs. The results also reveal an interesting phenomenon that service providers prefer clustering instead of spatial separation in this oligopoly market. |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1801.02135&r=tre |
| By: | Chao Luo; Yih-Fang Huang; Vijay Gupta |
| Abstract: | This paper studies the problem of multi-stage placement of electric vehicle (EV) charging stations with incremental EV penetration rates. A nested logit model is employed to analyze the charging preference of the individual consumer (EV owner), and predict the aggregated charging demand at the charging stations. The EV charging industry is modeled as an oligopoly where the entire market is dominated by a few charging service providers (oligopolists). At the beginning of each planning stage, an optimal placement policy for each service provider is obtained through analyzing strategic interactions in a Bayesian game. To derive the optimal placement policy, we consider both the transportation network graph and the electric power network graph. A simulation software --- The EV Virtual City 1.0 --- is developed using Java to investigate the interactions among the consumers (EV owner), the transportation network graph, the electric power network graph, and the charging stations. Through a series of experiments using the geographic and demographic data from the city of San Pedro District of Los Angeles, we show that the charging station placement is highly consistent with the heatmap of the traffic flow. In addition, we observe a spatial economic phenomenon that service providers prefer clustering instead of separation in the EV charging market. |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1801.02129&r=tre |
| By: | Charles Raux (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Ayman Zoubir (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Mirkan Geyik (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper analyzes the socio-demographic profile and travel behavior of the " Velo'v " bike-sharing scheme annual members in Lyon (France). This scheme started in 2005 and has now around 350 stations and 4500 bikes in operation, with more than 50,000 annual members. By the means of an Internet-based survey more than 3,000 respondents were described by their detailed socio-demographic profile, their travel means and habits, a one-day activity-travel diary and additionally a seven days activity-travel diary filled by around 700 volunteers. By this way the survey covers all travel modes and day-today variations in travel behavior beyond the sole use of shared bike. We analyze with a discrete choice model the socio-demographic and spatial factors affecting the probability of being an annual member of the Velo'v scheme. Then we compare with descriptive statistics their daily travel behavior involving as well bike sharing as other traditional modes to the travel behavior of the general population as given with the latest Household Travel Survey available in the Lyon area (2015). The majority of Velo'v annual members are male, younger and hold higher social positions when compared with the Lyon's general population. An individual higher social position and the residential proximity to stations have both separate and positive effects on the probability of being an annual member of the service. Velo'v members are not captive from public transport, a majority of them have access to a car and they are fully multimodal in their day-today travel behavior. Velo'v bikes are used by them for any activity, not necessarily every day, like any other travel mode. The multimodal behavior of Velo'v members shows that Velo'v supply fits especially a demand not satisfied when the public transport station is too distant from home. |
| Keywords: | bike-sharing,Lyon,annual membership,discrete choice model,one week travel diary |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01639787&r=tre |
| By: | Hidetada Higashi (CEAFJP - Centre d’études avancées franco-japonais de Paris - FFJ - Fondation France-Japon de l'EHESS - EHESS - École des hautes études en sciences sociales) |
| Abstract: | This article proposes the selection model of optimal powertrain for usage conditions especially between Internal Combustion Engine Vehicles (ICE vehicles) and Battery Electric Vehicles (BEVs), which is possible “Disruptive Innovation” stated by Christensen (1997). Using the statistics provided by official data of Japan, author estimated the average of actual maximum driving range of ICE vehicle currently sold. The analysis revealed that the actual fuel efficiency and maximum driving range of ICE vehicles is much lower than nominal one published by OEMs. After that, citing two cases of Japan, author examines the fit between the usage pattern and the choice of power train. Discussing these cases and analysis, the author concludes that that the driving range of BEV dose not solely matter for optimal choice of powertrain. Rather, the driving range and the fit between usage patterns and the availability of “charging place” jointly affect to the optimal choice. |
| Keywords: | Innovation,Disruptive Innovation,Value proposition,Diffusion of innovation,Automotive industry,Innovative power train,Fuel efficiency,Driving range,Electric vehicle,Urban mobility |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01670912&r=tre |
| By: | Benoît Laine; Alex Van Steenbergen |
| Abstract: | The goal of this paper is to estimate the efficiency cost of one additional euro of revenue through the personal income tax system, considering its simultaneous effects on the labour market and the transport market. More precisely, we seek to derive estimates of the Marginal Excess Burden of marginal personal income tax rates in Belgium considering the subsidization of company cars. We find that taking into account of welfare losses in the transport market adds 5-7 cents to the welfare cost of an additional euro of tax revenue, compared to models that consider only the effects on the labour market. The cost of raising the top marginal tax rate rises by 28% to 58% depending on the model assumptions. As an aside, we estimate tax expenditure on the transport sector via the personal income tax system to be 1.9 billion euro. We conclude that there is scope for welfare improving by base broadening and rate cutting. The framework is applied to analyse the merits of cash-for-car proposals. |
| Keywords: | Efficiency, Optimal taxation, Externalities, Redistributive effects, Personal income tax, Transport |
| JEL: | H21 H23 H24 R41 |
| Date: | 2017–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:1707&r=tre |
| By: | Miguel Ángel García-López (UAB - Universitat Autònoma de Barcelona [Barcelona], Institut d'Economia de Barcelona, Departament d'Econometria, Estadística i Economia Espanyola - UB - Universitat de Barcelona); Camille Hémet (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, Institut d'Economia de Barcelona, Departament d'Econometria, Estadística i Economia Espanyola - UB - Universitat de Barcelona, CEPR - Center for Economic Policy Research - CEPR); Elisabet Viladecans-Marsal (Institut d'Economia de Barcelona, Departament d'Econometria, Estadística i Economia Espanyola - UB - Universitat de Barcelona, CEPR - Center for Economic Policy Research - CEPR, UB - Universitat de Barcelona) |
| Abstract: | Recent evidence reveals that transportation's improvements within metropolitan areas have a clear effect on population and job decentralization processes. Yet, very little has been said on how these improvements affect the spatial organization of the economic activity in the suburbs. This paper analyses the effects of transportation's changes on employment subcenters formation. Using data from metropolitan Paris between 1968 and 2010, we first show that the spatial pattern of job decentralization is reinforcing the polycentric nature of Paris: the number of subcenters grew from 21 in 1968 to 35 in 2010 and the employment growth was very intense within them. Second, our main contribution is to show that the new rail transit clearly affects the emergence of subcenters: not only does the presence of a rail station increase the probability of a suburban municipality of becoming (part of) a subcenter by 5 to 10%, but a 10% increase in municipality proximity to a suburban station is found to increase its chance to be part of a subcenter by 3 to 5%. |
| Keywords: | Urban spatial structure ,Decentralization,Subcenters Polycentric city,Transportation |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01596269&r=tre |
| By: | Goerke, Laszlo (IAAEU, University of Trier); Lorenz, Olga (IAAEU, University of Trier) |
| Abstract: | We investigate the causal effect of commuting on sickness absence from work using German panel data. To address reverse causation, we use changes in commuting distance for employees who stay with the same employer and who have the same residence during the period of observation. In contrast to previous papers, we do not observe that commuting distances are associated with higher sickness absence, in general. Only employees who commute long distances are absent about 20% more than employees with no commutes. We explore various explanations for the effect of long distance commutes to work and can find no evidence that it is due to working hours mismatch, lower work effort, reduced leisure time or differences in health status. |
| Keywords: | sickness absence, absenteeism, commuting, health, labour supply |
| JEL: | I10 J22 R2 R40 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11183&r=tre |
| By: | Shaun McRae |
| Abstract: | Crude oil production in the United States increased by nearly 80 percent between 2008 and 2016, mostly in areas that were far from existing refining and pipeline infrastructure. The production increase led to substantial discounts for oil producers to reflect the high cost of alternative transportation methods. I show how the expansion of the crude oil pipeline network reduced oil price differentials, which fell from a mean state-level difference of $10 per barrel in 2011 to about $1 per barrel in 2016. Using data for the Permian Basin, I estimate that the elimination of pipeline constraints increased local prices by between $6 and $11 per barrel. Slightly less than 90 percent of this gain for oil producers was a transfer from existing oil refiners and shippers. Refiners did not pass on these higher costs to consumers in the form of higher gasoline prices. |
| JEL: | L71 L95 Q41 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24170&r=tre |
| By: | Nicolas Gendron-Carrier; Marco Gonzalez-Navarro; Stefano Polloni; Matthew A. Turner |
| Abstract: | We investigate the relationship between the opening of a city’s subway network and its air quality. We find that particulate concentrations drop by 4% in a 10km radius disk surrounding a city center following a subway system opening. The effect is larger near the city center and persists over the longest time horizon that we can measure with our data, about eight years. We estimate that a new subway system provides an external mortality benefit of about $594m per year. Although available subway capital cost estimates are crude, the estimated external mortality effects represent a significant fraction of construction costs. |
| JEL: | L91 R11 R14 R4 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24183&r=tre |
| By: | Dimitriou , Dimitrios J.; Sartzetaki, Maria F. |
| Abstract: | Air connectivity is a key driver for growth, especially for the attractive tourist destinations. Even though the benefits of the air transport are essential, limited research is published regarding the linkage of air connectivity and other business sectors (such as tourism), t he spillover effects on regional economy and the overall contribution of air connectivity to socioeconomic development. Especially for Mediterranean countries air transport for leisure purposes is the most important enabler to achieving economic growth and development. Air transport facilitates integration into the economy and provides vital connectivity on a national, regional, and international scale between countries, promoting tourism growth, and create employment opportunities in tourist destinations. The assessment concept and methodology are given, providing an essential tool for planners, economists, analysts and researchers. The application results are essential for comparisons with other destinations and provide key messages regarding the relations hip of air connectivity and air transport connectivity development in remote tourist destinations especially in Mediterranean region. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:sit:wpaper:18_1&r=tre |
| By: | Yurong Chen (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec); Yannick Perez (UP11 - Université Paris-Sud - Paris 11) |
| Abstract: | Electric vehicle (EV) industry is still in the introduction stage in product life cycle, and dominant design remains unclear. EV companies, both incumbent from the car industry and new comers, have long taken numerous endeavors to promote EV in the niche market by providing innovative products and business models. While most carmakers still take 'business as usual' approach for developing their EV production and offers, Tesla Motors, an EV entrepreneurial firm, stands out by providing disruptive innovation solutions. We review the business model approach in the literature, then classify the innovation dimensions in the EV ecosystem. We study Tesla Motors in terms of: (i) innovation related to the vehicle, (ii) innovation related to the battery (iii) innovation concerning the recharging system, and (iv) innovation toward the EV ecosystem. Lessons for incumbent carmakers for their EV business model design: Tesla Motors 1) holds a product strategy entering from high-end market and moving to mass market, with a high level of innovation adaptation and learning by doing; 2) pays considerable attention to reduce range anxiety by high performance supercharger station network and high capacity battery; 3) shows a very high level of integration of information technology into many aspects of the EV business model, such as advanced in-car services and digital distribute channel; 4) shows a new value configuration which involving in high level of vertical integration towards battery and recharging network. All these lessons of this chapter would be worth the attention of the carmakers if the disruptive choices of Tesla succeed in challenging the dominant design. |
| Keywords: | Innovation Management,Business Model,Electric Vehicle,Tesla Motors |
| Date: | 2017–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01655959&r=tre |
| By: | Mathilde Poulhes (INSEE; CREST) |
| Abstract: | This paper estimates buyers' preferences for dwelling attributes and neighbourhood characteristics. The collected data allows for the simultaneous consideration of a wide range of intrinsic characteristics, such as surface, floor, etc., and neighbourhood characteristics, including noise, crime, school quality, distance to jobs, etc. The marginal willingness to pay is identified from transaction data under the assumptions of the hedonic model described by Rosen (1974). We use very local fixed effects combined when possible with administrative boundaries as geographical discontinuities to isolate the effect of each amenity. Estimation is achieved by using flexible semi-parametric methods. Characteristics explain more than 90% of the variance of dwelling prices, showing a significant positive marginal willingness to pay for job accessibility and school quality, and a negative marginal willingness to pay for a higher crime rate in the area. By contrast, noise level or public transport accessibility have less influence on housing prices. These results are robust to the inclusion of census tract fixed-effects, which also drastically reduces the spatial correlation of the residual prices. |
| URL: | http://d.repec.org/n?u=RePEc:crs:wpaper:2017-13&r=tre |
| By: | Jacques Riziki Mulumba; Frédéric Dobruszkes; Hugo Mwanza Wa Mwanza |
| Abstract: | La concurrence croissante dans le transport aérien induit la nécessité pour les compagnies de se dis-tinguer par le prix et/ou par la qualité de leurs services. Dans les deux cas, la littérature existante néglige largement les pays en voie de développement. Le présent article vise à compenser cette la-cune en étudiant la qualité de service de la compagnie Congo Airways. Tant les attentes que la satis-faction de ses passagers ont été analysées par le biais d’une enquête conduite à l’aéroport interna-tional de Goma (République Démocratique du Congo). Les résultats montrent une bonne perception du service, mais cependant presque systématiquement légèrement inférieure aux attentes, ce qui suppose une insatisfaction. Les résultats montent aussi clairement la diversité de la clientèle tant en termes d’attente que de perception. Sur le plan managérial, il en découle que Congo Airways pour-rait utilement chercher à améliorer l’ensemble des critères considérés. Sur le plan scientifique, notre étude gagnerait à être répétée dans le cadre de pays en voie de développement avant de pouvoir tirer des conclusions plus générales. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/263522&r=tre |
| By: | Emma Hooper (French DG Treasury); Sanjay Peters (Columbia University); Patrick A. Pintus (InSHS-CNRS and Aix-Marseille Univ. (Aix-Marseille School of Economics), CNRS, EHESS and Centrale Marseille) |
| Abstract: | Through utilizing US state-level data at annual frequency from 1976 to 2008, this paper documents a causal effect of infrastructure investments, specifically public spending on highways, on income inequality. The number of seats in the US House of Representatives Committee On Appropriations serves as a valid instrument to identify quasi-random variations in state-level spending on highways. When a given state gains an additional committee member, which is rather exogenous, new federal grants are allocated to that state, resulting in the state government slashing its investment expenditures on highways. In other words, a crowding-out effect of federal funding for state investment in highways is at play. The main contribution of this paper is to show that such committee-driven cuts in spending on highways cause an increase in income inequality within a two-year horizon. In addition, we show that wages paid for construction jobs correlate positively and strongly with spending on highways at the state level. This further provides suggestive evidence that the construction sector plays an important role in the transmission channel from a rise in state spending on highways to a reduction in income inequality. |
| Keywords: | public infrastructure, highways, income inequality, US state panel data, instrument variable |
| JEL: | C23 D31 H72 I24 O51 |
| Date: | 2018–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1801&r=tre |
| By: | Bachmann, Rüdiger; Ehrlich, Gabriel; Ruzic, Dimitrije |
| Abstract: | This paper uses the 2015 Volkswagen emissions scandal as a natural experiment to provide causal evidence that group reputation externalities matter for firms. Our estimates show statistically and economically significant declines in the U.S. sales and stock returns of, as well as public sentiment towards, BMW, Mercedes-Benz, and Smart as a result of the Volkswagen scandal. In particular, the scandal reduced the sales of these non-Volkswagen German manufacturers by approximately 76,000 vehicles over the following year, leading to a loss of approximately $3.7 billion of revenue. Volkswagen's malfeasance materially harmed the group reputation of "German car engineering" in the United States. |
| Keywords: | automobiles; collective reputation; country reputation; Difference-in-Differences; event study; firm reputation; Google trends; Natural Experiment; reputation externalities; Twitter sentiment |
| JEL: | D12 D90 F23 L14 L62 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12504&r=tre |
| By: | Chao Luo; Yih-Fang Huang; Vijay Gupta |
| Abstract: | This paper studies the problem of stochastic dynamic pricing and energy management policy for electric vehicle (EV) charging service providers. In the presence of renewable energy integration and energy storage system, EV charging service providers must deal with multiple uncertainties --- charging demand volatility, inherent intermittency of renewable energy generation, and wholesale electricity price fluctuation. The motivation behind our work is to offer guidelines for charging service providers to determine proper charging prices and manage electricity to balance the competing objectives of improving profitability, enhancing customer satisfaction, and reducing impact on power grid in spite of these uncertainties. We propose a new metric to assess the impact on power grid without solving complete power flow equations. To protect service providers from severe financial losses, a safeguard of profit is incorporated in the model. Two algorithms --- stochastic dynamic programming (SDP) algorithm and greedy algorithm (benchmark algorithm) --- are applied to derive the pricing and electricity procurement policy. A Pareto front of the multiobjective optimization is derived. Simulation results show that using SDP algorithm can achieve up to 7% profit gain over using greedy algorithm. Additionally, we observe that the charging service provider is able to reshape spatial-temporal charging demands to reduce the impact on power grid via pricing signals. |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1801.02128&r=tre |
| By: | Imke Reimers (Northeastern University); Benjamin R. Shiller (Brandeis University) |
| Abstract: | Firms are increasingly able to monitor and collect proprietary data on their customers' behaviors, raising concerns among antitrust autorities that incumbents may use such data to soften competition. Focusing on auto insurance monitoring programs which offer tailored discounts to consumers driving safely, we examine the impact of proprietary data collection on incumbent profits. We find that incumbents' profits initially increase but are eroded by competition from other firms offering similar programs. We further find that these monitoring programs reduce fatal accidents. Yet the benefits are short lived. Incumbents, who do not necessarily internalize the full costs of accidents, typically monitor their customers only temporarily. Thus, regulation incentivizing permanent monitoring may improve welfare by reducing moral hazard. |
| Keywords: | Proprietary data, competition, asymmetric information, switching costs, car insurance, privacy |
| JEL: | D43 D82 L13 L40 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:brd:wpaper:119&r=tre |