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on Transport Economics |
| By: | Philipp Heimberger (The Vienna Institute for International Economic Studies, wiiw); Mario Holzner (The Vienna Institute for International Economic Studies, wiiw); Artem Kochnev |
| Abstract: | The German version can be found here. In this study we argue for a ‘Big Push’ in infrastructure investments in greater Europe. We propose the building of a European Silk Road, which connects the industrial centres in the west with the populous, but less developed regions in the east of the continent and thereby is meant to generate more growth and employment in the short term as well as in the medium and long term. After its completion, the European Silk Road would extend overland around 11,000 kilometres on a northern route from Lisbon to Uralsk on the Russian-Kazakh border and on a southern route from Milan to Volgograd and Baku. Central parts are the route from Lyon to Moscow in the north and from Milan to Constanţa in the south. The southern route would link Central Europe with the Black Sea area and the Caspian Sea littoral states. A state-of-the-art motorway and high-speed railway line with a string of logistics centres, seaports, river ports and airports shall set new European standards, among others in e-mobility. The full extension would constitute around EUR 1,000 billion or approximately 8% of the gross domestic product of the countries situated along its two routes. The costs relative to the EU’s economic output amount to about 7%. According to a conservative estimate, the European Silk Road could lead to an economic growth of 3.5% on average and an increase in employment of around 2 million along its routes in the course of an investment period of 10 years. Under favourable circumstances and at continued low interest rates, an employment creation of over 7 million can be expected in greater Europe. The improved infrastructure of the key route could yield significant time savings of over 8% in road transport on the northern route into the central region of Russia alone. On average this would save approximately 2.5 hours, for instance from Vienna. Thus the countries along the northern route would be able to increase their exports to Russia by more than 11%. This would imply additional exports of over EUR 12.5 billion. The Austrian export industry would particularly benefit from these infrastructural measures. Austria’s exports to Russia would rise by over 14%. This corresponds to about EUR 330 million. The construction projects would create 34,000 jobs in Austria. Under favourable conditions, up to 121,000 new jobs could be created in Austria. Summary A ‘European Silk Road’ The study concludes that Europe should respond to China’s New Silk Road initiative with a coherent infrastructure network and transport strategy of its own to leverage its economic potential. It should not rely on China’s Belt and Road Initiative (BRI) to achieve this, but invest itself to ensure that it suits European priorities. Nevertheless, a ‘European Silk Road’ can be seen as complementary to China’s efforts. The study finds that the development of a European Silk Road could create 2-7 million new jobs and could increase GDP on average by 3.5% in Wider Europe over a ten-year period. Eastern Europe in particular needs an upgrading of its transport infrastructure. If this is achieved, the boost to incomes and living standards would be particularly significant in that part of the continent, as a ‘big push’ in transport infrastructure investment has the potential to industrialise broad sectors of the economy. |
| Keywords: | infrastructure, transport, Europe, China, Silk Road, growth, industrialisation, international trade |
| JEL: | H54 O18 R41 R42 L92 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:wii:rpaper:rr:430&r=tre |
| By: | Doll, Claus; Köhler, Jonathan Hugh |
| Abstract: | This paper feeds into Stream 2 of the LowCarb-RFC study. It seeks to construct a Business-as-Usual scenario and a more ambitious Pro Rail scenario for freight transport along two major European rail freight corridors: RFC 1 (Rhine-Alpine) from the Dutch seaports to northern Italy and RFC 8 (North Sea-Baltic) from the Belgium seaports to Poland. The main focus of the scenarios is on the railways, but for a complete picture road haulage and inland navigation are considered as well. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s152018&r=tre |
| By: | Chao Luo |
| Abstract: | This dissertation is to study the interplay between large-scale electric vehicle (EV) charging and the power system. We address three important issues pertaining to EV charging and integration into the power system: (1) charging station placement, (2) pricing policy and energy management strategy, and (3) electricity trading market and distribution network design to facilitate integrating EV and renewable energy source (RES) into the power system. For charging station placement problem, we propose a multi-stage consumer behavior based placement strategy with incremental EV penetration rates and model the EV charging industry as an oligopoly where the entire market is dominated by a few charging service providers (oligopolists). The optimal placement policy for each service provider is obtained by solving a Bayesian game. For pricing and energy management of EV charging stations, we provide guidelines for charging service providers to determine charging price and manage electricity reserve to balance the competing objectives of improving profitability, enhancing customer satisfaction, and reducing impact on the power system. Two algorithms --- stochastic dynamic programming (SDP) algorithm and greedy algorithm (benchmark algorithm) are applied to derive the pricing and electricity procurement strategy. We design a novel electricity trading market and distribution network, which supports seamless RES integration, grid to vehicle (G2V), vehicle to grid (V2G), vehicle to vehicle (V2V), and distributed generation (DG) and storage. We apply a sharing economy model to the electricity sector to stimulate different entities to exchange and monetize their underutilized electricity. A fitness-score (FS)-based supply-demand matching algorithm is developed by considering consumer surplus, electricity network congestion, and economic dispatch. |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1808.03897&r=tre |
| By: | Jouni Lappalainen |
| Abstract: | This paper discusses obstacles faced in implementing SMS and uses concrete examples to show how to overcome them across all modes of transport (air, maritime, rail and road) in leading countries, particularly ITF member countries. The difficulties and problems in implementing SMS can originate from the specific cultural features of an organisation or an occupation. The cultural features can become either an enabler or a barrier for implementation of the safety management system. By understanding the cultural features better, the difficulties and problems in implementing safety management systems could be resolved. In order to avoid that particular cultural features become a barrier for implementing safety management systems the employees’ experience and expertise should be employed in the implementation work more intensively. Key enablers for safety improvements would involve all organisational levels in the identification, discussion and implementation of potential safety issues. New thinking is needed in safety management and, particularly, in incident reporting. Focusing on positive human factors and understanding humans as a resource of successful performance could motivate and encourage employees to report incidents more actively and thus promote rooting of positive safety culture in organisations. No company can manage implementing the safety management system properly using only its own resources. Co-operation of companies is needed and regulatory agencies should provide support for co-operation. The industries’ voluntary co-operation programmes have proved to be effective and valuable for overcoming any obstacles in the implementation of safety management systems. |
| Date: | 2017–08–07 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaab:2017/18-en&r=tre |
| By: | Kanyamuka, Joseph S.; Nankhuni, Flora J.; Jayne, Thomas S.; Munthali, Moses W. |
| Abstract: | Key Messages • Fertilizer use can be made more profitable with the inclusion of complementary interventions such as integrated soil fertility management practices that include integrating legumes in farming systems, crop rotation, application of organic manure in combination with inorganic fertilizers, and application of lime on acidic soils, among others. • By raising the efficiency of fertilizer use, these complementary interventions can expand the effective demand for fertilizers in a sustainable manner without dependence on subsidy programs. • Extension programs featuring good agronomic practices such as timely planting, correct and timely fertilizer application, timely weeding and proper plant spacing will also raise the efficiency of fertilizer use. • Effective implementation of these interventions will require public investments in agricultural research and responsive extension systems. • While typically considered outside the range of fertilizer promotion policies, public investment in road, rail-way and rural infrastructure and competitive behavior of the Malawi transport sector is another powerful way to boost fertilizer access by farmers. |
| Keywords: | Agricultural and Food Policy, Farm Management, Food Security and Poverty, International Development |
| Date: | 2018–05–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:miffpb:275670&r=tre |
| By: | Escobari, Diego; Rupp, Nicholas; Meskey, Joseph |
| Abstract: | Prices for the same flight change substantially depending on the time of purchase. Labeling this time-variation as discriminatory is misleading because the cost of an unsold airline seat changes with inventory, days before departure and aggregate demand expectations. This paper uses a unique dataset with round-the-clock posted fares to identify a dynamic price discrimination component. Consistent with agents forming expectations of future prices, we find higher prices during office hours (when business travelers are likely to buy tickets) and lower prices in the evening (when leisure travelers are more likely to purchase). As the proportion of business travelers increases closer to departure, both price dispersion and price discrimination become larger. We also find that price discrimination is more pronounced for low cost carriers than for legacy carriers. |
| Keywords: | Pricing, Price discrimination, Price dispersion, Airlines |
| JEL: | C23 D40 L93 |
| Date: | 2018–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:88078&r=tre |
| By: | Arik Levinson (Department of Economics, Georgetown University) |
| Abstract: | Economists endorse taxes as a cost-effective means of reducing pollution. But policymakers raise concerns about their regressivity, or disproportional burden on poorer families, preferring instead to regulate energy efficiency. I first show that in theory, energy efficiency standards are more regressive than energy taxes, not less. I then provide an example using data on automobiles in the United States. Taxing gas would be less regressive than regulating the fuel economy of cars if the two policies are compared on a revenue-equivalent basis. |
| Keywords: | Pigouvian tax, performance standards, pollution |
| JEL: | H23 |
| Date: | 2018–08–15 |
| URL: | http://d.repec.org/n?u=RePEc:geo:guwopa:gueconwpa~18-18-03&r=tre |
| By: | Alessandro Gavazza (London School of Economics); Andrea Lanteri (Duke University) |
| Abstract: | This paper studies the equilibrium dynamics arising in consumer durable goods markets in response to aggregate credit supply shocks. To this end, we develop a general-equilibrium model of durable consumption with heterogeneous households facing idiosyncratic income risk and borrowing constraints. Two novel features of our framework are that: 1) used durable goods trade on secondary markets at market-clearing prices; and 2) households endogenously choose when to scrap them. The model successfully matches several empirical patterns of U.S. car markets around the Great Recession that we document using a rich dataset on the prices of new and used vehicles as well as CEX data on households' vehicle replacement activity. After a negative credit shock (i.e., a tightening of the borrowing limit), debt-constrained households postpone the decision to scrap and upgrade their cars. The economy experiences a period of low resale prices for used cars, which reduces wealthy households' incentives to replace their cars, thereby decreasing new-car sales. We also use our framework to study the effects of aggregate income shocks, the role of cars as collateral, and to evaluate targeted fiscal stimulus policies such as the Car Allowance Rebate System in 2009 (``Cash for clunkers''). |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed018:384&r=tre |
| By: | Terry Kelly |
| Abstract: | In almost all cases, the transport industry has adopted safety management systems (SMS) in response to a regulatory initiative. SMS vary dramatically across transport modes and jurisdictions – often because of the influence of different legacy regulatory programmes, and the attendant cultures. Consequently, there is no single path to guarantee a regulatory authority success in designing and implementing SMS regulations. For many, SMS has become a voyage of discovery, an experiment in proactive safety management that is being conducted in real time. SMS has been a “step change” that has challenged industries in all modes of transport. It has severely taxed the capabilities of many regulatory authorities. It is arguably the most significant regulatory change that has occurred in the transportation industry in recent times. Regulating SMS has often led to revised legislation, regulations or standards; whole scale restructuring of the regulatory agency; new or revised regulatory protocols, processes, activities, and tools; and new information technology (IT) and new processes for information management (IM). SMS will continue to evolve in the coming decades. The paper draws on lessons learned to explore strategies that can be used to design, implement and operate the related regulatory programmes. Observations are provided to help decision makers manage the challenges they will predictably face. The critical role of dynamic, wide-reaching communications and strategic planning, with industry and within the regulatory organisation, is underlined. |
| Date: | 2017–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaab:2017/17-en&r=tre |
| By: | Sotiriadis, Marios; Shen, Shiwei |
| Abstract: | The aim of this paper is twofold: (i) to present the challenges of destination management and governance within the globalized and digital environment; and (ii) to analyse the potential contribution of partnership and branding to advancing tourism development and promoting tourism experience opportunities. A case of Public-Private Partnership (PPP) – The UNWTO Silk Road Programme - is used to investigate how related issues and aspects are put into implementation. The paper’s focus is on the valuable role of PPPs in marketing, infrastructure development and heritage management; and on the critical importance of involvement of stakeholders in engaging into this trans-border scale project. |
| Keywords: | Destination management; partnership; tourism experiences; branding; Silk Road |
| JEL: | L83 M31 |
| Date: | 2017–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:88145&r=tre |
| By: | Zsuzsanna Olofsson; Karin Brundell Freij |
| Abstract: | This paper proposes a framework to monitor progress towards improved integration in public transport. The framework adapts some elements of Transport Sustainability Barometer (TSB) which is a tool to assess transport sustainability in Swedish cities. The suggested indicator set follows the complex hierarchy of layers in integration (Process, System, Quality and Use). The selected indicators allow progress to be monitored from two perspectives, objective evidence and citizens’ perceptions. The proposed framework is only the first step towards a tool to monitor integration in public transport, and we provide recommendations to further develop a tool in consultation with its intended users. |
| Date: | 2017–08–16 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaab:2017/22-en&r=tre |
| By: | Shinyekwa, Isaac; Ntale, Anita |
| Abstract: | The paper estimates the impact of economic infrastructure on the exports of manufacturing products for the East African Countries, specifically, Uganda, Tanzania and Kenya. It departs from the literature that looks at infrastructure and development in general to facilitation of exports of manufactured products. An augmented gravity model is used to estimate the elasticities through which the proportion of economic infrastructure development required to generate a given proportion of exports of manufactured exports is calculated. Data used covers the period from 2001-2014 and is drawn from various sources including: COMTRADE, WEF, WDI and CEPII. Results provide evidence that that improvement in economic infrastructure generates huge gains in terms of export of manufactured exports; and there are more gains from hard infrastructure compared to soft infrastructure. Therefore the electricity, rail, road, airports infrastructure is paramount in boosting exports of manufactured products in the EAC region. It emerges that, transparency and accountability, internet connectivity and telephone subscription improve the efficiency and business environment which support the exportation of manufactured products. It is concluded that the mobilization of resources for investment in economic infrastructure to promote exports of manufactured products is inevitable for the EAC region. |
| Keywords: | Community/Rural/Urban Development, International Development, International Relations/Trade, Political Economy |
| Date: | 2017–09–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eprcrs:265773&r=tre |
| By: | Cody Cook; Rebecca Diamond; Jonathan Hall; John A. List; Paul Oyer |
| Abstract: | The growth of the “gig” economy generates worker flexibility that, some have speculated, will favor women. We explore this by examining labor supply choices and earnings among more than a million rideshare drivers on Uber in the U.S. We document a roughly 7% gender earnings gap amongst drivers. We completely explain this gap and show that it can be entirely attributed to three factors: experience on the platform (learning-by-doing), preferences over where to work (driven largely by where drivers live and, to a lesser extent, safety), and preferences for driving speed. We do not find that men and women are differentially affected by a taste for specific hours, a return to within-week work intensity, or customer discrimination. Our results suggest that there is no reason to expect the “gig” economy to close gender differences. Even in the absence of discrimination and in flexible labor markets, women’s relatively high opportunity cost of non-paid-work time and gender-based differences in preferences and constraints can sustain a gender pay gap. |
| JEL: | J16 J31 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24732&r=tre |