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on Transport Economics |
| By: | UGUR ERDOGAN (Istanbul University Business School) |
| Abstract: | Airports are essential parts of the air transport system. As the gateways to aviation, they play a key role in facilitating tourism, travel, global trade and regional welfare. In 2016, airlines worldwide carried 3.8 billion people with an increase of 7% according to previous year. IATA?s 20-year forecast states that air passenger numbers will reach to seven billion annually by 2034. The demand growth for air transport services is much higher than the growth of airport infrastructure. Shortage in airport capacity is one of the most important pressing issues affecting world air mobility today.If capacity is less than demand, the demand needs to be managed. To use an airport at a specific time, an airline must have a slot. A Slot is most commonly known as landing or take-off right at airports during a specified period of time. The distribution of slots is carried by an independent ?Slot co-ordinator?. London Heathrow Airport is the most heavily slot restricted airport in the world, and the slots are very valuable. At Heathrow, the slots in the slot pool is very limited. In 2016 only 3 pair of new slots given to airlines by the slot coordinator. Because of the unavailability and lack of new slots, Heathrow has a premium secondary slot market, that makes it unique in the world. In 1999, the UK High Court gave a historic judgement about the question of buying and selling of slots and approved a slot deal between British Airways and KLM. By this approval, airlines are allowed to pay money to other airlines for slot transactions at UK airports. Although slot trading is still uncommon and technically illegal at EU airports, slots traded freely at Heathrow airport. In 2016, a gulf carrier, Oman Air purchased a prime slot pair from KLM for 75 million USD. The previous record was 60 million USD for a slot pair American Airlines bought from SAS a year before.Airport slots are not always used by airlines that attach the highest value to them on behalf of airport side. The efficient use of airport capacity means uses of larger aircraft, longer average flight lengths, and higher passenger numbers for allocated slots. If there is an inadequate use of a slot by a short-haul and less passenger flight, buying of this slot by another airline for a long-haul flight can create additional value and efficiency to that slot time. |
| Keywords: | Air transport, airport slots, airport capacity, grandfather rights, competitive advantage, secondary slot trading. |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7209668&r=tre |
| By: | Qie He (University of Minnesota); Stefan Irnich (Johannes Gutenberg-University); Yongjia Song (Virginia Commonwealth University) |
| Abstract: | Two critical yet frequently conflicting objectives for logistics and transportation service companies are improving customer satisfaction and reducing transportation cost. In particular, given a network of customer requests with preferred service times, it is very challenging to find vehicle routes and service schedules simultaneously that respect all operating constraints and minimize the total transportation and customers’ inconvenience costs. In this paper, we introduce the Vehicle Routing Problem with Time Windows and Convex Node Costs (VRPTW-CNC), in which we model each customer’s inconvenience cost as a convex function of the service start time at that customer. The VRPTW-CNC combines and extends both the standard vehicle routing problem with time windows and some previous results on the optimal service scheduling problem over a fixed route. We propose a branch-cut-and-price algorithm to solve the VRPTW-CNC with general convex inconvenience cost functions. To solve the pricing problem, our labeling algorithm only generates labels that possibly lead to optimal schedule times over a route, which significantly improves the effectiveness of pricing. Extensive computational results demonstrate the effectiveness of our approach. |
| Keywords: | Vehicle routing problem, branch-cut-and-price, labeling algorithm, convex node costs, integrated routing and scheduling |
| Date: | 2018–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:jgu:wpaper:1804&r=tre |
| By: | Krishnamurthy, Chandra K. (The Beijer Institute for Ecological Economics); Ngo, Nicole S. (School of Planning, Public Policy, and Management, University of Oregon) |
| Abstract: | Demand-responsive parking pricing programs, in which parking is priced based upon occupancy, are increasingly being used in cities experiencing rapid growth as a way to optimize parking. Despite the potential of demand-responsive parking in minimizing parking-related externalities, there are few empirical estimates regarding the effects of parking management policies, particularly around transit usage and traffics flow. We use data from SFpark, a demand-responsive on-street parking pricing program for the city of San Francisco, along with a rich micro data-set on transit bus usage from the San Francisco Municipal Transportation Agency. Using a difference-in-difference strategy, we find that SFpark is associated with sizeable increases in transit bus usage of about 21 and reductions in lane occupancy of 5 percentage points per census block. Our welfare computations suggest economic benefits of $36 million over the duration of the program (2011-2013) resulting from avoided pollution due to increased transit usage and from reduced congestion. These benefits easily exceed the nominal costs of the program. Our results not only suggest that demand-responsive pricing programs achieve their stated goals, but also mitigate many traffic-related externalities, yielding significant welfare benefits. |
| Keywords: | Parking policy; transportation; mass transit; air pollution |
| JEL: | L91 Q50 R40 |
| Date: | 2018–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2018_006&r=tre |
| By: | Stefan Rehak; Marek Kacer |
| Abstract: | Proximity to the central business district (CBD) is considered to be a significant determinant of the real estate price formation as households are willing to pay more for housing that is closer to CBD in order to decrease the commuting costs. There is no consensus on the measure of distance, rather, various measures are used by different authors. Within a city, the opportunity costs of time in transportation represent a major part of the commuting costs. Thus, many authors believe that using travel time represents the accessibility to CBD more accurately than distance variables. An interesting question is how different distance measures influence the overall quality of the hedonic model and the estimated parameters in the model.This article draws on recent development in GIS techniques for computing travel distance and time between a number of points on a map using different travel modes to examine hedonic price functions for the apartment market in Bratislava. If real estate market is in equilibrium, attractiveness of location is fully capitalised into property prices. Our research is based on information from 1334 internet offers of apartments for sale in year 2016, which includes information about basic characteristics of individual apartments and the building in which the apartment is located. Using Google Maps Distance Matrix API service, we computed travel distance and travel time to the city centre for walking, public transportation (transit) and driving travel mode. In addition to distance to the city centre we also include the district in which the apartment is located. As the hedonic models of apartment prices usually suffer from the presence of spatial autocorrelation leading to biased and/or inefficient OLS estimates, we use both spatial and non-spatial models.In general, we have confirmed the negative slope of the distance gradient in Bratislava. District specific parameters generally decline with moving away from CBD and all distance measures showed negative coefficients. In addition, we found that the role of district-specific particularities is over-estimated in both spatial and non-spatial models when using crow fly measurement of distance to the city centre compared with other types of distance measurements. |
| Keywords: | Bratislava; distance gradient; GIS; Hedonic Model; Spatial econometrics |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_259&r=tre |
| By: | HACARDIAUX Thomas, (Université catholique de louvain); TANCREZ Jean-Sebastien, (Université catholique de Louvain, CORE, Belgium) |
| Abstract: | Horizontal cooperation consists in the collaboration of companies that work at the same level of the supply chain. The literature discusses several real-life cases and experimental studies of horizontal cooperation, showing that these partnerships generate savings. In this paper, to evaluate these savings, we present a location-inventory model, formulated as a conic quadratic mixed integer program, which minimizes facility opening, transportation, cycle inventory, ordering and safety stock costs. This model enables us to assess the synergy value and the evolution of the cost components, comparing the costs of stand-alone companies and horizontal partnerships. In order to better understand the impact of markets and partners characteristics on the synergy value, we conduct a large set of numerical experiments, varying several key parameters (vehicles’ capacity, facility opening cost, inventory holding cost, order cost, demand variability and distances), aiming to offer valuable managerial insights for companies wishing to collaborate. We find that indeed horizontal cooperation can lead to significant savings, with an average coalition gain of 22.5%. Moreover, collaboration is particularly profitable for companies with high facility opening costs and low order costs, carrying small (compared to the vehicle capacity) and inexpensive (low unit holding cost) products in a market with a low demand variability. |
| Keywords: | horizontal cooperation; coalition gain; synergy value; supply chain network design; location-inventory model |
| Date: | 2018–05–18 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2018014&r=tre |
| By: | Alex Niez (Cor Jesu College); Wayne Manabat (Cor Jesu College); Jonathan Lanterna (Cor Jesu College) |
| Abstract: | The facilitation of effective driving lesson is the preoccupation of every Technical Vocational Education (TVE) institution offering driving competency program. It is observed that with one steering wheel unit the driving lessons are delayed since both trainee and trainer will take turns positioning in the same steering wheel during demonstration and application of driving competencies. Likewise, the safety of both trainer and trainee is at stake since the trainer?s control of the trainee?s manipulation of the steering wheel and pedals is done only through verbal instruction. This development study aimed to invent Auto-Shift Application Pilot (ASaP) control system to be used in innovating a trainee friendly and a danger-free school driving vehicle. ASaP controls the functioning of the two sets of the steering wheel and two sets of pedal respectively for the trainer and the trainee to facilitate teaching-learning of car driving competencies. Using descriptive design, test and evaluation of the functionality and aesthetic design of ASaP control system were conducted by 5 school driving trainers and 15 driving trainees as respondent. Results showed that ASaP control system is highly functional with the mean score of 4.6 and competitive in its aesthetic design with the mean score of 4.2. It is recommended that this ASaP control system is installed in a school driving vehicle for a trainee friendly and trainee danger free driving lessons. |
| Keywords: | Driving Control System, Driving Lesson, Invention-Innovation, Technical Vocational, Philippines |
| JEL: | L62 I29 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:6408473&r=tre |
| By: | Wei, X.; Ali, T.; Huang, J. |
| Abstract: | China is investing huge funds into Pakistan’s transport infrastructure under China Pakistan Economic Corridor. Both countries stand to benefit from these developments via improved trade and lower export prices. We use a global economics models (GTAP) to assess the effects of transport infrastructure by developing several policy scenarios in 2025. Our results show that both Pakistan and China will get positive effects in terms of GDP growth and welfare. The effects are particularly significant on Pakistan. In terms of mutual trade, Pakistan’s net exports of agricultural commodities to China will increase more than the exports non-agricultural commodities. On the other hand, non-agricultural exports from China will improve significantly to Pakistan. Due to changing trade relations, there will be some adjustment in Pakistan’s production structure. Pakistan could experience some leveling of income due to slight increase in rural incomes. The expected benefits can only be realized by speedy and smooth implementation of the projects under CPEC. |
| Keywords: | Agricultural and Food Policy, International Relations/Trade |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:276050&r=tre |
| By: | Ariell Zimran |
| Abstract: | I study the impact of transportation on health in the rural US, 1820–1847. Measuring health by average stature and using within-county panel analysis and a straight-line instrument, I find that greater transportation linkage, as measured by market access, in a cohort's county-year of birth had an adverse impact on its health. A one-standard deviation increase in market access reduced average stature by 0.10 to 0.29 inches. These results explain 26 to 65 percent of the decline in average stature in the study period. I find evidence that transportation affected health by increasing population density, leading to a worse epidemiological environment. |
| JEL: | I15 N31 N71 O18 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24943&r=tre |
| By: | Avinoam Meir (Ben Gurion University of the Negev) |
| Abstract: | The transformation of the Negev Bedouin from mobile pastoral life into immobile semi-urban market economy, primarily through state intervention, has not ended Bedouin-state conflict. Even under semi-urban life, forms of spatial mobility, originating in their past tribal culture remain conflictual. This paper analyzes how the process of planning an upgrade of Road 31 in the Negev by the state violates the social order by curtailing this indigenous mobility. Over the years the Bedouin have created numerous informal dirt roads in their spaces that connect informally and illegally to the formal Road 31. These roads connect particularly to the 'unrecognized Bedouin villages' where the conflict revolves over the 'right for producing indigenous space'. The spatial syntax of these spaces, manifested through these roads, reflects the internal micro socio-political structure of Bedouin groups, facilitating secure movement for rival families thus sustaining the internal local delicate social order. The planning of the upgrade project ignored these forms of local mobility and connection to Road 31. Although the state agreed to regularize only few of these informal roads and 'intersections', most Bedouin spaces are left disrupted in terms of indigenous mobility. We conclude that: (1) the conceptual framework of the 'new mobilities paradigm' provides an opportunity for a more profound analysis of Bedouin space, and through this, (2) surfacing new significant layers of indigenous socio-spatial endogenous regulative measures that concern mobility, imported by the Bedouin from pastoral into 'settled' life; these are often overlooked by the state, perpetuating thus the spatial conflict. |
| Keywords: | Mobility, indigeneity, road, Bedouin |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7809490&r=tre |
| By: | Christian Otter (Pan-European University); Christian Watzl (Pan-European University); Daniel Schwarz (Pan-European University); Pamela Priess (Pan-European University) |
| Abstract: | The Courier, Express and Parcel services (CEP) sector is a constant growing one. The changes concerning e-commerce have impact in the industry which is looking for solution. This research, based on a web survey with 1019 computer assisted web interviews, presents e-commerce customer expectations in alternative delivery time frames and considers the impacts in the last mile of attended home delivery, reception boxes and collection-and-delivery points. The analysed alternative delivery time frames are Express delivery within 3 hours, evening delivery, Saturday delivery, Sunday delivery and customer selected time frame. Within these the focus is on e-commerce purchase habits, frequency of purchase, products, time of purchase, interest in alternative delivery time frames, usage or preferences and finally the willingness to pay for an alternative delivery. The results show a tendency of more than two thirds towards consumer selected delivery time frame, Saturday delivery and evening delivery, which is accompanied by easy accessible Reception Boxes (RBs). The research study also performs regression analysis and finds a significant impact of Alternative Delivery Time Frame (ADTF), and Delivery Methods (DM) on customer's willingness to pay. |
| Keywords: | delivery time windows,courier express parcel services,sustainable logistics,parcel delivery customer expectations, e-commerce,last mile problem |
| Date: | 2017–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01861042&r=tre |