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on Transport Economics |
| By: | Klapper, Daniel (Institute for Marketing Humboldt-University Berlin); Pleshcheva, Vlada (Institute for Marketing Humboldt-University Berlin) |
| Abstract: | In the current paper, we quantify the effect that fuel prices have on vehicle prices\' responsiveness to fuel economy. We apply a hedonic price model to the German automobile market by using data on detailed technical specifications of high-sales vehicles of three sequential model years. In the contribution to previous research, our specification enables us to distinguish between consumers\' valuation of fuel economy versus their reaction to changes in fuel prices. Two sources of changes in consumers\' willingness-to-pay for better fuel economy are discussed - changes in the budget for driving a car and changes in capital investments in better car quality. We also discuss the subsequent changes in the optimal driving intensity and the resulting carbon dioxide emissions. Differences in the effects are studied for various car makes of both diesel and gasoline engines. |
| Keywords: | co2 emissions; fuel economy; fuel prices; hedonic regression; |
| JEL: | D12 L62 Q41 Q51 |
| Date: | 2019–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:141&r=all |
| By: | Muhammad Halley Yudhistira (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia); Regi Kusumaatmadja (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia); Mochammad Firman Hidayat (National Planning Agency, Indonesia) |
| Abstract: | Travel demand restriction is getting popular to disentangle trafic jams in heavily congested urban areas. The policy is easy to implement while reduction in congestion level is perceived to be substantial. We test this hypothesis by evaluating the impact of odd-even policy on congestion level in Jakarta, one of most severe congested cities in the world. Using hourly travel time data at road segment level drawn from GoogleMaps, the odd-even policy reduces the travel time by 3% on average after a month of its implementation. The effect is higher during weekend and at afternoon peak-hour window. Yet, the effect vanishes after the third week of policy introduction. Our result then sheds an indication of ineffective transport demand restriction in Jakarta. |
| Keywords: | odd-even policy — travel time — Jakarta — trafic demand management |
| JEL: | R41 R42 R48 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:lpe:wpaper:201829&r=all |
| By: | Fabien Leurent (LVMT - Laboratoire Ville, Mobilité, Transport - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - UPEM - Université Paris-Est Marne-la-Vallée - ENPC - École des Ponts ParisTech); Sheng Li (LVMT - Laboratoire Ville, Mobilité, Transport - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - UPEM - Université Paris-Est Marne-la-Vallée - ENPC - École des Ponts ParisTech); Hugo Badia (KTH - Royal Institute of Technology [Stockholm]) |
| Abstract: | The paper develops a structural model and a design methodology for transit system planning in an urban area. Transit "components" are modelled by subarea and by sub-mode in terms of line length, station spacing, and fleet size, in order to determine both quality of service and production costs. Roadway networks are modeled with a Macroscopic Fundamental Diagram that relates speed to network capacity and vehicle demand. Local and global environmental impacts are considered. Travel demand includes both mode-dependent users and mode-choosers able to adopt the mode that offers higher utility. The design methodology involves a mathematical program of welfare optimization with respect to transit factors and fares. Two definitions of welfare are given, one that takes into account only demand surplus and supply profit, the other including environmental impacts. An example of application to Greater Paris shows that there is room for system optimization under current subsidy conditions, and that the explicit inclusion of environmental impacts brings about a significant shift in the "optimal" policy package. |
| Keywords: | multimodal transportation,transit network,design model,social welfare,environmental impacts |
| Date: | 2018–09–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02010003&r=all |
| By: | Ouail Al Maghraoui (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec, IRT SystemX - IRT SystemX); Flore Vallet (Roberval - UTC - Université de Technologie de Compiègne); Jakob Puchinger (AIT - Austrian Institute of Technology [Vienna]); Bernard Yannou (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec) |
| Abstract: | Travelers interact with a large number and variety of products and services during their journeys. The quality of a travel experience depends on a whole urban mobility system considered in space and time. This paper outlines the relevant concepts to be considered in designing urban mobility. The goal is to provide a language and insights for the early stages of a design process. A literature review sheds light on the complexity of urban mobility from technical, socio-technical, and user experience (UX) perspectives. Observations of experiences in urban areas provide data for describing and understanding travel experience patterns and issues. The paper proposes a conceptual model to describe and analyze different facets of traveler experience, and categorizes problems that travelers face when they interact with an urban mobility system. A case study is reported illustrating the use of the conceptual model in identifying travel problems for a demand-responsive transport (DRT) service. |
| Keywords: | System design,traveler experience,travel problems,service |
| Date: | 2019–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02017696&r=all |
| By: | Claudio R. Lucinda; Rodrigo Moita |
| Abstract: | Despite widely prescribed by economists, a congestion tax is seldom used in practice. Why? This paper combines a structural econometric model with a simulation algorithm to estimate an optimal congestion tax and investigate its political acceptance. Results for Sao Paulo show the tax to be 2 USD per trip. Policy simulations indicate that (i) commuters that switch to the public transportation bears the largest share of the tax burden and (ii) revenue recycling is essential for the policy to be accepted. Skepticism about the use of tax revenues is the likely cause for the low use of the congestion tax. |
| Keywords: | pigouvian tax; urban transportation; congestion; urban toll |
| JEL: | L92 R41 L91 |
| Date: | 2019–02–19 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2019wpecon10&r=all |
| By: | Kim, Jungwook (Korea Development Institute) |
| Abstract: | Private–public partnership (PPP) methods are considered to be an effective way to narrow the gap between demand and supply of social infrastructure. If successfully pursued, PPP can deliver benefits to users, governments, and the private sector, or the so-called triple wins. Enhancing efficiency by reducing cost and time overruns is beneficial to users and governments, and better quality of service is expected via PPP. It will also examine the factors that have been important for shaping the county’s PPP landscape, including fiscal soundness, unsolicited project proposals, and the refinancing and renegotiation of PPPs. PPPs are not a must-have solution but an option for building and upgrading infrastructure. In conclusion, PPPs are being promoted because it can mobilize needed resources from the private sector, maximize value for money, bring creativity and efficiency to a project, and be a source of fiscal stimulus. That said, countries should be clear on why they are promoting the PPP modality for infrastructure. |
| Keywords: | economic growth; infrastructures; public–private partnership; value for money |
| JEL: | E60 H54 H81 |
| Date: | 2018–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0557&r=all |
| By: | Marius Agasse-Duval (ENAC - Ecole Nationale de l'Aviation Civile); Steve Lawford (ENAC - Ecole Nationale de l'Aviation Civile) |
| Abstract: | How does the small-scale topological structure of an airline network behave as the network evolves? To address this question, we study the dynamic and spatial properties of small undirected subgraphs using 15 years of data on Southwest Airlines' domestic route service. We find that this real-world network has much in common with random graphs, and describe a possible power-law scaling between subgraph counts and the number of edges in the network, that appears to be quite robust to changes in network density and size. We use analytic formulae to identify statistically over-and under-represented subgraphs, known as motifs and anti-motifs, and discover the existence of substantial topology transitions. We propose a simple subgraph-based node ranking measure, that is not always highly correlated with standard node centrality, and can identify important nodes relative to specific topologies; and investigate the spatial "distribution" of the triangle subgraph using graphical tools. Our results have implications for the way in which subgraphs can be used to analyze real-world networks. * We are grateful to Karim Abadir, Gergana Bounova, Pascal Lezaud, Chantal Roucolle and Miguel Urdanoz for helpful comments and suggestions. We also thank Patrick Senac for supporting this project: Agasse-Duval was partially funded by an ENAC summer research grant. Correspondence can be addressed to Steve Lawford, ENAC (DEVI),. The visualization, subgraph analysis, and motif detection tools used in this paper were coded by the authors in Python 2.7. The usual caveat applies. |
| Keywords: | Combinatorics graph theory,Air transportation,Economics,econophysics,financial markets,business and management,Complex systems,Graph theory,Network motif,Scaling,Subgraph,Airline network |
| Date: | 2019–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02017122&r=all |
| By: | Kim, Kang-Soo (Korea Development Institute); Jung, Min-Woong (Korea Development Institute); Park, Mee-Soo (Korea Development Institute); Koh, Yoo-Eun (Korea Development Institute); Kim, Jin-Oh (Korea Development Institute) |
| Abstract: | Infrastructure plays a critical role in boosting the economy’s overall productivity and development toward improving the quality of life. Public–private partnership (PPP) is considered as one of the key modalities for sustainable infrastructure development. This paper analyzes and compares the PPP systems in the Republic of Korea, the Philippines, and Indonesia to identify the requirements for making this modality an effective catalyst for infrastructure’s contribution to sustainable development. These countries have used the increased capacity and transactional experience in handling these partnerships to develop their PPP markets and strengthen their institutional framework to increase the use of PPPs to provide infrastructure services. A comparative analysis is then conducted to draw lessons for other economies in developing Asia seeking to improve the efficiency and effectiveness of their PPPs. The analysis underscores how strong institutions, unified procurement frameworks, and effective dispute resolution mechanisms can improve the implementation of infrastructure PPPs. |
| Keywords: | infrastructures; legal and institutional frameworks; public–private partnership |
| JEL: | H40 H50 O20 |
| Date: | 2018–10–16 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0561&r=all |
| By: | Rao, Vivek (Asian Development Bank) |
| Abstract: | A recent Asian Development Bank publication estimates the large infrastructure financing requirement in Asia for the period 2016–2030, which establishes the strong need to encourage private sector participation to meet investment requirements. This paper analyzes a critical aspect of expanding private finance to infrastructure by examining the role of bank lending to public–private partnership (PPP) projects through the project finance modality. The key empirical results suggest that project financing by banks to infrastructure PPP projects is still in its infancy in several Asian markets, and banks are guided more by macroeconomic factors and by the strength of their balance sheets. The key policy implications to unlock bank finance for infrastructure PPP projects lie in reducing macroeconomic risk factors and having well-capitalized banks. The latter assumes significance, given the higher capital requirements that banks are expected to fulfill, following the adoption of Basel III capital standards. |
| Keywords: | project finance; bank lending; infrastructure; public–private partnership |
| JEL: | G21 G32 H41 H54 |
| Date: | 2018–08–20 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0554&r=all |
| By: | Lee, Minsoo (Asian Development Bank); Han, Xuehui (Asian Development Bank); Quising, Pilipinas (Asian Development Bank); Villaruel, Mai Lin (Asian Development Bank) |
| Abstract: | Developing Asia’s infrastructure gap results from both inadequate public resources and a lack of effective channel to mobilize private resources toward desired outcomes. The public–private partnership (PPP) mechanism has evolved to fill the infrastructure gap. However, PPP projects are often at risk of becoming distressed or worst being terminated because of the long-term nature of contracts and the many different stakeholders involved. This paper applies survival time hazard analysis to estimate how project-related, macroeconomic, and institutional factors affect the hazard rate of the projects. Empirical results show that government’s provision of guarantees, involvement of multilateral development banks, and existence of a dedicated PPP unit are important for a project’s success. Privately initiated proposals should be regulated and undergo a competitive bidding to reduce the hazard rate of the project and the corresponding burden to government. Economic growth leads to successful project outcomes. Improved legal and institutional environment can ensure PPP success. |
| Keywords: | infrastructures; investment policy; public–private partnership; survival analysis |
| JEL: | F21 H54 H81 |
| Date: | 2018–07–23 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0548&r=all |
| By: | Zen, Fauziah (Economic Research Institute for ASEAN and East Asia) |
| Abstract: | Infrastructure development in Southeast Asia has been financed mainly by public funds, which leave wide gaps in majority of countries. Governments have tried to attract the private sector by offering various schemes under public–private partnership (PPP). Typically, PPP contributes less than 1% of gross domestic product, while public finance greatly varies from about 2% to 10% of a country’s gross domestic product. Among major factors supporting PPP implementation, the following features are critical: coherent policy, public sector capacity to manage PPP appropriately, public sector willingness to have mutual relation with private partners, and leadership. Private participation is still continuously growing; and its implementation is not limited to hard infrastructure only, but also to social infrastructure. |
| Keywords: | infrastructure development; private sector participation; public–private partnership; social infrastructures |
| JEL: | H54 O21 R53 |
| Date: | 2018–08–15 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0553&r=all |
| By: | Kurdin, Alexander (Курдин, Александр) (The Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | The paper reflects the systematization and historical analysis of approaches to the regulation of natural monopolies that have been used in the United States and Europe over the past century. The focus is on the oil and gas sector, electric power industry and rail transportation as the largest areas of activity of natural monopolies. The study of international experience allows us to identify trends in the development of regulation of natural monopolies and assess the prospects for applying this experience to Russian enterprises. |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:021928&r=all |
| By: | Brützel, Christoph; Schulke, Arne |
| Abstract: | Warren Buffett once famously stated that airlines were infamous for destroying shareholder value . His hindsight proposition to better have taken the Wright brothers out of the sky violently surely was a pointed one, if not entirely serious. This paper seeks to shed some light on the challenges underlying the industry that Buffett blames as a value destroyer, and explain the difficulties most airlines have to tackle on a daily basis. The idea of aviation management as event management is the basis of this exploration of the airline industry, emphasizing the daunting task of offering an intangible product , created long before demand is certain, at a price that is lowest when the product itself is most difficult and costly and complex to produce. This underlying conundrum is one of the central challenges airlines need to confront when trying - hard at most times - not to actively destroy shareholder value. |
| Keywords: | Aviation,Airlines,Performance Management,Product Management,Event Management |
| JEL: | M10 M11 M31 N70 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iubhtl:12019&r=all |
| By: | Hoppe, Eva I; Schmitz, Patrick W. |
| Abstract: | The government wants an infrastructure-based public service to be provided. First the infrastructure has to be built, subsequently it has to be operated. Should the government bundle the building and operating tasks in a public-private partnership? Or should it choose traditional procurement, i.e. delegate the tasks to different firms? Each task entails unobservable investments to come up with innovations. It turns out that depending on the nature of the innovations, bundling may either stimulate or discourage investments. Moreover, we find that if renegotiation cannot be prevented, a public-private partnership may lead the government to deliberately opt for a technologically inferior project. |
| Keywords: | innovations; moral hazard; Procurement; public-private partnerships; Renegotiation |
| JEL: | D86 H11 H54 H57 L33 |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13406&r=all |