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on Transport Economics |
| By: | Martinez, Sebastian; Sanchez, Raul; Yañez, Patricia |
| Abstract: | This paper studies the effects of areal cable cars on mode of transport, time use and employment in the metropolitan area of La Paz, Bolivia. Using an instrumental variables approach, we estimate local average treatment effects of cable car use for residents who use the system due to proximity to a cable car station. Results suggest that cable-car users substitute private transport in favor of public transit and experience large savings in commute time, which is reallocated toward educational and recreational activities. Users also increase self-employment activities, potentially reflecting improved access to local labor markets. The positive effects of the cable-car are driven by residents of the city of El Alto, a city with high concentration of poor and indigenous households on the high plateau bordering La Paz. The economic benefits of the cable car outweigh costs by a ratio of 1.05 to 2.16. |
| Keywords: | Cable Car; Mi Teleferico; Mass Transit; Travel Time; Employment |
| JEL: | O18 R41 L92 |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:36&r=all |
| By: | Snorre Kverndokk; Erik Figenbaum; Jon Hovi |
| Abstract: | Aiming to reduce the number of brown (polluting) cars on the road, several countries currently promote the purchase and use of green (emission-free) cars through financial and non-financial incentives. We study how such incentives affect consumers who continue to drive brown cars. Using a simple model, we analyze the effects of policy instruments such as subsidizing green cars, taxing brown cars, and allowing green cars to drive in bus lanes. Car owners are influenced by price incentives as well as by external effects from traffic (such as congestion) both in regular lanes and in bus lanes. An extension of the model also considers how changes in local driving habits affect brown-car driving. We find that subsidizing green cars and allowing green cars to drive in bus lanes might increase brown-car driving. We also report the results of a recent survey containing questions specifically designed to tap the significance of the model’s core mechanisms. The results are largely consistent with propositions derived from the model. While most brown-car respondents report their driving was unchanged after the implementation of the policies to promote green cars, some – particularly in major cities – report that these policies caused them to reduce or increase their driving. We conclude that some mechanisms in our model are more important than others and that certain mechanisms appear to influence different brown-car drivers in different ways. Overall, it seems that Norwegian policies to promote the purchase and use of green cars have indeed reduced brown-car driving. |
| Keywords: | electric vehicles, environmental policies, external effects, habit formation, social norms |
| JEL: | D62 H23 Q54 R42 R48 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7679&r=all |
| By: | Gimenez-Nadal, J. Ignacio (University of Zaragoza); Molina, José Alberto (University of Zaragoza) |
| Abstract: | This paper analyzes how gasoline tax rates are related to the time workers in the United States spend commuting by private car, public transport, or with other physical modes of transport. Our identification strategy relies on both between-state differences and time variations in gasoline taxes. Using the American Time Use Surveys for the years 2003 to 2015, we find that higher gasoline tax rates are related with less time spent in commuting. Furthermore, higher gasoline taxes are related to a lower proportion of commuting by private car, and higher proportions of commuting by public transport and/or a physical mode of transport (e.g., walking, cycling). Our results highlight the importance of gasoline taxes (and prices) on the consumption of energy for personal transport, as higher gasoline taxes are related to a greater use of "green" modes of transport, showing that fuel taxes are important for good management of the environment. |
| Keywords: | commuting time, public transport, walking/cycling, gasoline taxes |
| JEL: | D1 Q4 R4 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12377&r=all |
| By: | Hamed, Usama Ben; Thomas, Keith; Naser, Wafa |
| Abstract: | With the establishment of increasing numbers of small breweries the disposal of wet brewery spent grains (WBSG) may pose difficulties in the future particularly for urban breweries and if transport costs make collection uneconomic. The aim of this study is to estimate the transportation cost of spent grains from beverage production. This aim is investigated using a survey addressed to UK breweries. In order to achieve the aim of this study, a model was applied; namely spent grain costing model (SGCM).The SGCM model revealed that the majority of vehicles used to transport WBSG from three different sizes of brewery (small, medium and large) to farms were between 1 to 6 tonne loading capacity and the average distance from these breweries to farms was 5 miles. Data analyses were conducted by three vehicles classes and they were categorized in terms of loading capacity 1 tonne, 3 tonnes and up to 6 tonnes. This analysis was conducted to determine the average cost of transporting WBSG from breweries to farms. The results indicated that the average transport cost per tonne of WBSG for vehicle with the sizes of 1 tonne, 3 tonne and 6 tonnes were £ 10.11, £5.20 and £3.27 respectively. |
| Keywords: | Agricultural Finance, Crop Production/Industries |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289685&r=all |
| By: | Kenneth Gillingham; Fedor Iskhakov; Anders Munk-Nielsen; John Rust; Bertel Schjerning |
| Abstract: | We introduce a computationally tractable dynamic equilibrium model of the automobile market where new and used cars of multiple types (e.g. makes/models) are traded by heterogeneous consumers. Prices and quantities are determined endogenously to equate supply and demand for all car types and vintages, along with the ages at which cars are scrapped. The model allows for transactions costs, taxes, flexible specifications of car characteristics, consumer preferences, and heterogeneity. We apply the model to two examples: a revenue-neutral replacement of the new vehicle registration tax with a higher fuel tax and a hypothetical “merger to monopoly” in an oligopolistic new car market. We show substantial gains in consumer welfare from the tax policy change, as well as important effects on government revenues, automobile prices, driving, fuel consumption and CO2 emissions, while the merger leads to substantial welfare losses. |
| Keywords: | secondary markets, trade, consumer heterogeneity, transactions costs, dynamic programming, extreme value distribution, dynamic discrete choice, multinomial logit model, stationary equilibrium, Markov chains, invariant distributions |
| JEL: | D43 D61 H21 H23 L90 Q40 Q58 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7650&r=all |
| By: | Gabriel M. Ahlfeldt; Volker Nitsch; Nicolai Wendland |
| Abstract: | For a complete cost-benefit analysis of durable infrastructures, it is important to understand how the value of non-market goods such as transit time and environmental quality changes as incomes rise in the long-run. We use difference-in-differences and spatial differencing to estimate the land price capitalization effects of metro rail in Berlin, Germany today and a century ago. Over this period, the negative effect of rail noise tripled in percentage terms. Our results imply long-run income elasticities of the value of noise reduction and transport access of 2.2 and 1.4, substantially exceeding cross-sectional contingent valuation estimates. |
| Keywords: | accessibility, spatial differencing, noise, difference-in-differences, income elasticity, land price |
| JEL: | R12 R14 R41 N73 N74 |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1631&r=all |
| By: | Mitnik, Oscar A.; Sanchez, Raul; Yañez, Patricia |
| Abstract: | This paper quantifies the impacts of transport infrastructure investments on economic activity in Haiti, proxied by satellite luminosity data. Our identification strategy exploits the differential timing of rehabilitation projects across various road segments of the primary road network. We combine multiple sources of non-traditional data and carefully address concerns related to unobserved heterogeneity. The results obtained across multiple specifications consistently indicate that receiving a road rehabilitation project leads to an increase in luminosity values between 7 percent and 15 percent at the communal section level. Taking into account the national level elasticity between luminosity values and GDP, we approximate that these interventions translate in GDP increases of around 0.6 percent and 1.2 percent in communal sections that were benefited by a transport project. Findings also uncover some temporal and spatial variation, showing that effects take some time to appear and that it is not the richest or the poorest communities that are gaining from these investments but those in the middle of the income distribution. |
| JEL: | O10 R40 O47 D04 |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:28&r=all |
| By: | Étienne Latulippe; Kun Mo |
| Abstract: | The market for electric vehicles (EVs) is growing rapidly. Subsidies and technological improvements are expected to increase the market share of EVs over the coming decade. In its base-case scenario, the International Energy Agency (IEA) expects EV use to rise from 4 million vehicles in 2018 to 120 million by 2030, or from 0.3 per cent to over 7 per cent of the global car fleet. However, depending on environmental policy decisions, the number of EVs on the road by 2030 could reasonably range between 57 million and 300 million (4 to 19 per cent of the global fleet). The switch to EVs will have important implications for the global oil market. Our analysis shows that for every additional 100 million EVs on the road in 2030, gasoline consumption would fall by about one million barrels of oil per day and oil prices would be 4 per cent lower. Applying this rule-of-thumb to IEA’s base-case oil price projection of US$90 for 2030, we find that different assumptions on the size of the EV fleet can reasonably push oil prices within a range of US$85 to US$93. |
| Keywords: | International topics |
| JEL: | Q47 |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocsan:19-19&r=all |
| By: | Gbologah, Franklin E.; Rodgers, Michael O.; Li, Hanyan "Ann" |
| Abstract: | The U.S. Environmental Protection Agency identified the use of low rolling resistance (LRR) tires as an effective method of reducing vehicle fuel consumption, especially from heavyduty vehicles (HDV). LRR tires are important to HDV operations because fuel accounts for about 25% of operating costs, and improving fuel economy also reduces emissions of both greenhouse gases and oxides of nitrogen, a precursor to the formation of ozone, which is harmful to humans, plants, and animals. However, their adoption rate has been slow primarily due to performance uncertainties under real-world operating conditions. Previous mathematical models developed to help fleet operators estimate the impact of LRR tires on their operations have suffered from poor accuracy because they do not account for variable speed profiles in realworld HDV operations. Georgia Tech researchers have developed a new tool for fleet managers that better predicts the benefits of LRR tires under real-world conditions. View the NCST Project Webpage |
| Keywords: | Engineering, Data analysis, Fleet management, Fuel consumption, Heavy duty vehicles, Rolling resistance, Simulation, Tires, Tractor trailer combinations, Traffic speed, Vehicle fleets |
| Date: | 2019–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt6cg510sf&r=all |
| By: | Herbert Dawid; Gerd Muehlheusser |
| Abstract: | This paper addresses the role of product liability for the emergence and development of smart products such as autonomous vehicles (AVs). We analyze how the liability regime affects innovative activities, as well as the timing of market introduction and market penetration of such smart products. We develop a dynamic model in which at each point in time, a potential (monopolistic) innovator decides on how much to invest in the safety stock of the smart product and on the product price, once it has been launched. Calibrating the model to the U.S. car market, our analysis reveals policy-relevant trade-offs when shifting more liability on the producers of AVs. First, while this improves the safety of AVs in the long run, the safety stock is accumulated more slowly. Second, it delays the market introduction of AVs, and also slows down market penetration, which hampers the innovator’s incentives for safety investments in the short- and intermediate term. As a result, the safety level of AVs at a given point in time decreases as the liability regime becomes more stringent. Furthermore, there is a threshold for the innovator’s burden of liability beyond which she forgoes to develop the AV altogether. Finally, we find that direct AV safety regulation is welfare-superior compared to a stringent liability regime, as it induces higher levels of AV safety in the short and intermediate term. |
| Keywords: | product innovation, liability, digital economy, autonomous vehicles, smart products, optimal investment dynamics |
| JEL: | O31 K13 L11 L62 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7673&r=all |
| By: | Alessandro Avenali (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy); Yuri Maria Chianese (Applied Research to Technologies srl, Rome, Italy); Graziano Ciucciarelli (Applied Research to Technologies srl, Rome, Italy); Giorgio Grani (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy); Laura Palagi (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy) |
| Abstract: | In the last years car-sharing has been growing as a valid alternative in urban mobility.Since its beginning the focus has been posed on relocation costs and stations positioning. On the counter part its well known that price discrimination can improve significantly companies' revenues. Our idea is to apply price discrimination to a particular case of car sharing by adapting tools from classical Revenue Management (e.g. airline models). We firstly propose a pricing strategy for car-sharing, and we propose a mixed-integer linear program to evaluate the best strategy. Furthermore we propose alternative MILP formulations corresponding to different relocation strategies. Finally we performs numerical simulation based on real data to support our approach. |
| Keywords: | car sharing ; Revenue management ; dynamic pricing |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:aeg:report:2019-04&r=all |
| By: | Franklin, Simon |
| Abstract: | Do high search costs affect the labour market outcomes of jobseekers living far away from jobs? I randomly assign transport subsidies to unemployed youth in urban Ethiopia. Treated respondents increase job search intensity and are more likely to find good, permanent, jobs. Subsidies also induce a short‐term reduction in temporary work. I use a high‐frequency phone call survey to track the trajectory of search behaviour over time to show that the subsidies significantly increased job search intensity and the use of formal search methods. The evidence suggests that cash constraints cause young people to give up looking for good jobs too early. |
| JEL: | J1 |
| Date: | 2018–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:87938&r=all |
| By: | Thierry Blayac (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Patrice Bougette (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - UCA - Université Côte d'Azur - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | En 2017, 7,1 millions de voyageurs ont eu recours aux services de bus longue distance, soit une hausse de 14,5 % par rapport à l'année précédente. Fortgens Photography / Shutterstock Depuis l'ouverture à la concurrence du marché des bus longue distance en août 2015, les opérateurs recherchent une taille critique pour devenir rentables. Dès la création de ce nouveau marché, la stratégie développée par les nouveaux entrants consistait à pratiquer des tarifs attractifs de manière à induire de la demande pour ce nouveau mode de transport souffrant d'un manque de reconnaissance en France. En 2017, 7,1 millions de voyageurs ont eu recours aux services de bus longue distance, soit une hausse de 14,5 % par rapport à l'année précédente. Dès l'ouverture de ce nouveau marché s'est manifestée une clientèle plutôt jeune, familiale ou encore retraitée, sensible au prix. L'évolution des habitudes de consommation joue également, avec l'exemple des « Millenials » qui privilégient l'économie collaborative. Plus récemment, |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02129164&r=all |
| By: | Sophia du Plessis (Department of Economics, Stellenbosch University); Ada Jansen (Department of Economics, Stellenbosch University); Krige Siebrits (Department of Economics, Stellenbosch University) |
| Abstract: | The aim of many public policies is to change behaviour. Governments tend to rely on regulations, taxes and subsidies to effect such change. These measures, which affect agents' economic incentives, have a mixed record. A key insight of the New Institutional Economics is that the efficacy of such formal institutions depends on the strength of their enforcement and the extent to which they are compatible with prevailing informal institutions. This paper uses the road safety situation in South Africa as a case study to explore aspects of the relationships among formal institutions, law enforcement and informal institutions. South Africa has a strong suite of road safety laws but poor road safety outcomes. The paper argues that improved law enforcement cannot fully solve the problem; complementary changes to the informal institutions shaping the behaviour of road-users are essential. It points out that institutional economists have to take a greater interest in the insights of research in behavioural economics, behavioural and cognitive science and other disciplines in order to provide useful advice in settings where such change is an important policy objective. |
| Keywords: | Traffic laws, formal institutions, law enforcement, informal institutions, South Africa |
| JEL: | B52 D02 D04 D73 K42 L91 L98 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:sza:wpaper:wpapers322&r=all |
| By: | Giorgio Grani (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy); Gianmaria Leo (IBM Analytics Data Science Elite, Munich, Germany); Laura Palagi (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy); Mauro Piacentini (Amazon EU SARL, Luxembourg, Luxembourg); Hunkar Toyoglu (Sabre Airline Solutions, Operations Research Consulting, Southlake, TX, United States) |
| Abstract: | Airline revenue management (RM) departments pay remarkable attention to many different applications based on sales-based linear program (SBLP). SBLP is mainly used as the optimization core to solve network revenue management problems in RM decision support systems. In this study we consider a post-departure analysis, when there is no more stochasticity in the problem and we can tackle SBLP with integrality constraints on the variables (SBIP) in order to understand which should be the best possible solution. We propose a new formulation based on a market-service decomposition that allows to solve large instances of SBIP using LP-based branch-and-bound paradigm. We strengthen the bound obtained with the linear relaxations by introducing effective Chvatal-Gomory cuts. Main idea is to optimally allocate the capacity to the markets by transforming the market subproblems into a piecewise linear objective function. Major advantages are significant reduction of the problem size and the possibility of deriving a concave objective function which is strengthened dynamically. Numerical results are reported. Providing realistic integral solutions move forward the network revenue management state of the art. |
| Keywords: | revenue management ; mixed-integer programming ; decomposition ; airline ; piecewise linear |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:aeg:report:2019-05&r=all |
| By: | Prema-Chandra Athukorala; C. Veeramani |
| Abstract: | This paper examines the growth trajectory and the current state of Indian automotive industry, paying attention to factors that underpinned its transition from the import-substitution phase to export orientation through integration into global production networks. Following the liberalisation reforms, India has emerged as a significant producer of compact cars within global automobile production networks. Interestingly there are no significant differences in prices of compact cars sold in the domestic and foreign markets. This suggest that cost competitiveness of Indian cars sold in foreign markets is not rooted solely in the prevailing high tariffs on imported cars in India. Market confirming policies implemented over the past two decades, which marked a clear departure from the protectionist past, have been instrumental in transforming the Indian automobile industry in line with ongoing structural changes in the world automobile industry. Capacity development propelled by the entry of global carmakers and parts and components producers to set up production bases in the country and leaning through competition in foreign markets have been the key factors behind India’s emergence as a production base within global automobile production networks. |
| Keywords: | India, automobile industry, global production networks, trade policy, foreign direct investment |
| JEL: | F13 F14 L92 L98 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:pas:papers:2018-14&r=all |
| By: | Pohit, Sanjib; Gupta, Devendra; Malik, Sameer; Pratap, Devender |
| Abstract: | In today’s world, economic climate changes more quickly, and countries realize that globalization has made the world smaller and more competitive. Also, customers seek products and services that can respond to their specific needs and firms make effort to create competitive advantages to keep their profit and market share. All of the above trends lead firms and countries to focus on efficient logistics system. In this context, almost all developed economies and a few emerging economies estimate national logistics cost on a regular basis to understand the efficiency of their logistics system. This paper makes an attempt to survey the literature on logistics cost estimation with special emphasis from the perspective of a developing country like India where estimation is a challenge due to limitation of data. |
| Keywords: | Logistics cost, transportation cost, supply and use table |
| JEL: | F0 F00 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:94607&r=all |
| By: | Chengyuan Han; Dirk Witthaut; Marc Timme; Malte Schr\"oder |
| Abstract: | Quantifying the importance and power of individual nodes depending on their position in socio-economic networks constitutes a problem across a variety of applications. Examples include the reach of individuals in (online) social networks, the importance of individual banks or loans in financial networks, the relevance of individual companies in supply networks, and the role of traffic hubs in transport networks. Which features characterize the importance of a node in a trade network during the emergence of a globalized, connected market? Here we analyze a model that maps the evolution of trade networks to a percolation problem. In particular, we focus on the influence of topological features of the node within the trade network. Our results reveal that an advantageous position with respect to different length scales determines the success of a node at different stages of globalization and depending on the speed of globalization. |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1906.06092&r=all |