On the generalized cost - demand elasticity of intermodal container transport

Elasticities for freight transport in the context of mode choice are hardly available for markets in which intermodal container transport competes with truck only transport. These elasticities are expected to be different, however, from values found in the literature for traditional freight transpor...

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Main Authors: Bart Jourquin, Lóránt Tavasszy, Liwei Duan
Format: Article
Language:English
Published: TU Delft OPEN Publishing 2014-09-01
Series:European Journal of Transport and Infrastructure Research
Online Access:https://journals.open.tudelft.nl/ejtir/article/view/3042
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author Bart Jourquin
Lóránt Tavasszy
Liwei Duan
author_facet Bart Jourquin
Lóránt Tavasszy
Liwei Duan
author_sort Bart Jourquin
collection DOAJ
description Elasticities for freight transport in the context of mode choice are hardly available for markets in which intermodal container transport competes with truck only transport. These elasticities are expected to be different, however, from values found in the literature for traditional freight transport, as trucking is a complement to rail or inland waterway transport when used for pre- or post-haulage, but a substitute to these modes when used from the origin to the final destination. This paper presents direct and cross (generalized) cost elasticities for road and rail transport demand for continental intermodal container transport and constitutes an attempt to compare the elasticities for intermodal transport with those for general freight transport. We first look into the sensitivity of elasticities to the total length of the haul and to pre- and post-haulage distances by road using a stylized, theoretical model. The assumption about pre- and post-haulage distances in mode choice appears to be important, as elasticities for road transport in the context of intermodal transport chains can be half of the values currently used in a conventional mode choice situation without access or egress by road. Next we provide empirical values for the market of container transport using a European multimodal network model. The absolute values of the estimated elasticities follow a double trend when the cost for trucking is modified: they increase with the distance between the origin and the destination, but decrease with the length of pre- or post-haulage. In all cases, the values are estimated to be inelastic. Overall, the “complement” component of the computed elasticities for rail-road transport is estimated to be approximately 20% of the total impact.
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spelling doaj.art-18b11f6326854dd7a5f5c975a63067362023-12-02T08:24:36ZengTU Delft OPEN PublishingEuropean Journal of Transport and Infrastructure Research1567-71412014-09-0114410.18757/ejtir.2014.14.4.30422656On the generalized cost - demand elasticity of intermodal container transportBart Jourquin0Lóránt Tavasszy1Liwei Duan2Université Catholique de LouvainDelft University of Technology and TNOSouthwest Jiaotong University and Delft University of TechnologyElasticities for freight transport in the context of mode choice are hardly available for markets in which intermodal container transport competes with truck only transport. These elasticities are expected to be different, however, from values found in the literature for traditional freight transport, as trucking is a complement to rail or inland waterway transport when used for pre- or post-haulage, but a substitute to these modes when used from the origin to the final destination. This paper presents direct and cross (generalized) cost elasticities for road and rail transport demand for continental intermodal container transport and constitutes an attempt to compare the elasticities for intermodal transport with those for general freight transport. We first look into the sensitivity of elasticities to the total length of the haul and to pre- and post-haulage distances by road using a stylized, theoretical model. The assumption about pre- and post-haulage distances in mode choice appears to be important, as elasticities for road transport in the context of intermodal transport chains can be half of the values currently used in a conventional mode choice situation without access or egress by road. Next we provide empirical values for the market of container transport using a European multimodal network model. The absolute values of the estimated elasticities follow a double trend when the cost for trucking is modified: they increase with the distance between the origin and the destination, but decrease with the length of pre- or post-haulage. In all cases, the values are estimated to be inelastic. Overall, the “complement” component of the computed elasticities for rail-road transport is estimated to be approximately 20% of the total impact.https://journals.open.tudelft.nl/ejtir/article/view/3042
spellingShingle Bart Jourquin
Lóránt Tavasszy
Liwei Duan
On the generalized cost - demand elasticity of intermodal container transport
European Journal of Transport and Infrastructure Research
title On the generalized cost - demand elasticity of intermodal container transport
title_full On the generalized cost - demand elasticity of intermodal container transport
title_fullStr On the generalized cost - demand elasticity of intermodal container transport
title_full_unstemmed On the generalized cost - demand elasticity of intermodal container transport
title_short On the generalized cost - demand elasticity of intermodal container transport
title_sort on the generalized cost demand elasticity of intermodal container transport
url https://journals.open.tudelft.nl/ejtir/article/view/3042
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