High speed rail and tourism: Empirical evidence from Spain

This paper evaluates how changes in the provision of high-speed rail (HSR) services affect tourism outcomes in Spain, a tourist country with the newest and longest HSR network in Europe. To do so it employs an empirical strategy based on the differences-in-differences panel data method with double fixed effects. Data are provided by Spain’s National Statistics Institute (INE) and cover 50 provinces over a 15-year time span (1998–2013). Our results provide mixed evidence about the impact of HSR accessibility on tourist outcomes. On the one hand, we find that air traffic is negatively affected by HSR and air traffic is a strong predictor of tourist arrivals. This suggests a negative indirect effect of HSR on tourist outcomes. On the other hand, HSR may have a positive (weak) direct effect on tourism. However, such result is conditioned on the measure of HSR accessibility and econometric technique used. Thus, the net effect of HSR on tourism outcomes is not consistently positive. This pattern might be attributed to a network design that does not respond to ridership needs and which has a substitution effect on air transportation, the main mode for long-distance tourist mobility.     

Effects of high-speed rail and airline cooperation under hub airport capacity constraint

This paper analyzes the effects of cooperation between a hub-and-spoke airline and a high-speed rail (HSR) operator when the hub airport may be capacity-constrained. We find that such cooperation reduces traffic in markets where prior modal competition occurs, but may increase traffic in other markets of the network. The cooperation improves welfare, independent of whether or not the hub capacity is constrained, as long as the modal substitutability in the overlapping markets is low. However, if the modal substitutability is high, then hub capacity plays an important role in assessing the welfare impact: If the hub airports are significantly capacity-constrained, the cooperation improves welfare; otherwise, it is likely welfare reducing. Through simulations we further study the welfare effects of modal asymmetries in the demands and costs, heterogeneous passenger types, and economies of traffic density. Our analysis shows that the economies of traffic density alone cannot justify airline–HSR cooperation.     

Airline network choice and market coverage under high-speed rail competition

While the existing literature has focused on the short-term impacts, this paper investigates the long-term impacts of high-speed rail (HSR) competition on airlines. An analytical model is developed to study how an airline may change its network and market coverage when facing HSR competition on trunk routes. We show that prior to HSR competition, an airline is more likely to adopt a fully-connected network and cover fewer fringe markets if the trunk market is large. Under HSR competition, the airline will, for a given network structure, have a greater incentive to cover more fringe (regional or foreign) markets if the trunk market is large, or the airline network is close to hub-and-spoke. Further, the airline will, for any given market coverage, move towards a hub-and-spoke network when the trunk market is large, or the number of fringe markets covered by the airline network is large. Both effects are more prominent when the decreasing rate of airline density economies is large. We further show that HSR competition can induce the airline to adopt network structure and market coverage that are closer to the socially optimal ones, thereby suggesting a new source of welfare gain from HSR based on its long-term impacts on airlines. Implications for operators, policy makers and specific countries (such as China) are also discussed.     

High‐speed rail cost recovery time based on an integer optimization model

With increasing gasoline prices, electric high‐speed rail (HSR) systems represent one means to mitigate overexposure to volatile prices. However, additional research is needed related to funding this infrastructure. In this paper, we develop a new integer optimization model to address this problem and use a hypothetical case study to demonstrate the approach. The objective of the approach is to minimize the time period in which the cost of HSR construction and operation can be recovered. This is an iterative process based on an integer optimization model, whose objective function is to determine the optimum recovery time (ORT), by setting the HSR ticket price and frequency. Embedded in the optimization model is a multinomial logit model for calculating the demand for HSR as a function of these decision variables, thus capturing the effects of level of service on market share. In particular, the optimization model accounts for the role of different types of subsidies toward HSR construction (one‐time subsidies at construction, annual subsidies, and subsidies depending on frequency). This method can also help determine whether an HSR system should be built or how much subsidy should be provided given a fixed expected cost recovery time. By integrating the logit model into the objective function evaluation, the effects of ticket price and service frequency on service demand can be directly captured. Copyright © 2014 John Wiley & Sons, Ltd.     

Tracks to Change or Mixed Signals? A Review of the Anglo-Saxon Literature on the Economic and Spatial Impacts of High-Speed Rail

ABSTRACT

The economic development and spatial impacts of high-speed rail (HSR) are quite varied and mixed. Studies of economic impacts of HSR fall into two categories: predictions and empirical observations. We first review studies that examine predicted HSR impacts related to job growth, real estate development, and other economic effects. These are followed by studies examining observed effects of realized projects using the same categories. Several patterns emerge. Predictive studies are largely optimistic of the rail's positive effects. On the other hand, observational studies tend to identify both benefits and shortfalls. Yet, neither of these patterns are universal and depend on a number of other factors. One consistent pattern is that gains associated with HSR appear to be stronger in first-tier cities. Nevertheless, certain small towns and second-tier cities have undergone noteworthy transformations as a result of HSR, especially where the public sector has actively pursued new investment.     

High-speed rail and air transport competition and cooperation: A vertical differentiation approach

This paper considers vertical differentiation between air transport and high-speed rail (HSR) with different ranges of travel distance to analyze the air-HSR competition effects on fares, traffic volumes and welfare, as well as the conditions under which air-HSR cooperation is welfare-enhancing. The analysis is conducted in a hub-and-spoke network with a network carrier, an HSR operator, and a spoke airline, taking into account potential hub airport capacity constraint. We find that air-HSR competition in the connecting market may result in the network airline charging an excessively high price in the HSR-inaccessible market. This effect is present even when the HSR-inaccessible route is a duopoly-airline market. On the other hand, air-HSR cooperation increases fares in the connecting market, and an improvement in rail speed or air-HSR connecting time reduces airfare on the routes where HSR and the airline compete. When the airline cannot serve all the markets due to limited hub airport capacity, it would withdraw from the market in which it has less competitive advantage over HSR. Finally, air-HSR cooperation is more likely to be welfare-improving when the hub airport is capacity constrained, and when either air transport or HSR exhibits strong economies of traffic density.     

Does European high-speed rail affect the current level of air services? An EU-wide analysis

This paper analyses whether the current provision of air services in Europe is impacted by high-speed rail (HSR). An ex-post analysis is carried out considering 161 routes EU-wide using transnational data. We use censored regressions with special attention paid to the presence of outliers in the sample and to the potential problem of non-normality of error terms. It is found that shorter HSR travel times involve less air services, with similar impact on both airline seats and flights. This impact quickly drops between 2.0- and 2.5-h HSR travel time. The impact of HSR frequencies is much more limited. Hubbing strategies led by the airlines have the opposite effect from HSR, as hubs involve more air services. Airline/HSR integration at the airport and cities being served by both central and peripheral stations have no significant impact. Metropolitan and national spatial patterns may help to better understand intermodal effects.     

A Review of Ex-Post Evidence for Mode Substitution and Induced Demand Following the Introduction of High-Speed Rail

ABSTRACT

To date, relatively little is known about the nature of the demand for high-speed rail (HSR) soon after inauguration of the services, despite close to 50-year experience of HSR operation and 17 166?km of HSR network around the world. This is a real lacuna given the scale of HSR construction around the world, the amount of resources committed to it, the desired accessibility, economic and environmental effects associated with HSR development and the relatively poor track record of forecasting demand for HSR services. Focusing on mode substitution and induced demand effects, this review aims to fill the gap in knowledge about the ex-post demand for HSR services in order to facilitate a learning process for the planning of the future HSR network. Although there is not much evidence on the demand for HSR services and existing evidence is largely influenced by route-specific characteristics, a methodological limitation that must be acknowledged, the evidence presented allows a better characterisation of HSR as a mode of transport. The review shows that the demand for HSR a few years after inauguration is about 10–20% induced demand and the rest is attributed to mode substitution. In terms of mode substitution, in most cases the majority of HSR passengers have used the conventional rail before. Substitution from aircraft, car and coach is generally more modest.     

Tradable credits scheme and transit investment optimization for a two‐mode traffic network

This paper proposes an optimization model to minimize the “system costs” and guide travelers' behavior by exploring the optimal bus investment and tradable credits scheme design in a bimodal transportation system. Travelers' transport mode choice behavior (car or bus) and the modal equilibrium conditions between these two forms of transport are studied in the tradable credits scheme. Public transport priority is highlighted by charging car travelers credits only. The economies of scale presented by the transit system under the tradable credit scheme are analyzed by comparing the marginal cost and average cost. Numerical examples are presented to demonstrate the model. Furthermore, the effects of tradable credits schemes on bus investment and travelers' modal choice behavior are explored based on scenario discussions. Copyright © 2016 John Wiley & Sons, Ltd.     

Carbon,water, land and material footprints of China’s high-speed railway construction

The rapid development of China’s high-speed rail (HSR) has caused great concern worldwide, and its various environmental impacts is also a main topic. As such, a comprehensive assessment of these environmental impacts is significant for future HSR construction. In this study, a hybrid input-output life cycle method is applied to evaluate multi-footprints of Beijing-Tianjin intercity HSR, namely, carbon, water, land, and material footprints. Results show that the total carbon, water, land, and material footprints of the entire Beijing-Tianjin HSR construction are 3669.0 kt CO₂, 54954.7 kt fresh water, 45830.6 ha land, and 8474.2 kt original materials. In the construction stage, bridge and rail systems have the largest environmental impacts, totally contributing above 74% of the four footprints. The indirect footprints from upstream material production have the dominant effects, accounting over 89% in the four footprints. Metal smelting and rolling, transportation equipment manufacturing, and non-metallic mineral products are high-water-consuming and high-emission sectors in raw material production. Improving industrial production efficiency, optimizing line layout, optimizing production distribution and construction process management are key mitigation ways for multi-footprints.     

The role of access and egress in passenger overall satisfaction with high speed rail

Passenger satisfaction is critical to ridership growth of high speed rail (HSR). Each HSR trip includes at least four segments: access to HSR stations, waiting, line-haul, and egress from HSR stations. Satisfaction with any segment influences the HSR passenger experience. Previous studies often focus on passenger satisfaction with the line-haul segment, but overlook the effects of all four segments on overall HSR satisfaction, especially access and egress. Using a path analysis on the data collected from the Shanghai-Nanjing HSR corridor in 2016, this study explores the influence of access and egress segments on overall HSR satisfaction and the correlates of satisfaction with HSR access and egress segments. We find that HSR line-haul satisfaction dominates overall HSR satisfaction; HSR access and egress satisfaction together have an equivalent effect. Travel time and route familiarity are important to both access and egress satisfaction. Mode choice affects satisfaction with HSR egress, with egress by car carrying the largest utility of egress satisfaction, followed by rail transit, taxi, and then bus. Thus, to improve HSR experience, traveler information service and the integration of HSR with urban transportation system are critical.

     

Airlines’ reaction to high-speed rail entries: Empirical study of the Northeast Asian market

We investigate the impact of the commencement of high-speed rail (HSR) services on airlines’ domestic available seats on affected routes in China, Japan, and South Korea. The study is based on a dataset covering the 1994–2012 period. We use the propensity score matching method to pair HSR affected routes with routes without HSR services. The difference-in-difference approach is used to estimate the impact of HSR entry. We find that HSR entries may, on average, lead to a more significant drop in airlines’ seat capacity in China than in Japan and Korea given similar HSR service speed. In China, HSR services with a maximum speed about 200 km/h can produce strong negative impacts on medium-haul air routes but induce more air seat capacity on long-haul routes. HSR services with a maximum speed of 300 km/h have little extra impact on medium-haul routes but a strong negative impact on long-haul routes. Finally, although HSR has a strong negative impact in Japan’s short-haul and medium-haul air markets, little impact is observed in its long-haul markets.     

Air transport and high-speed rail competition: Environmental implications and mitigation strategies

We build a duopoly model to shed light on the environmental impact of HSR-air transport competition, capturing the effects of induced demand, schedule frequency and HSR speed. The net environmental effect can be negative since there is a the trade-off between the substitution effect – how many passengers using the HSR are shifted from air transport – and the traffic generation effect – how much new demand is generated by the HSR. We conduct a simulation study based on the London-Paris market where HSR has served 70% of the market. The introduction of HSR is detrimental to LAP, while it is beneficial to GHG emissions. HSR entry increases neither LAP nor GHG emissions when the ratio between HSR and air transport emissions is relatively low. Moreover, competition is more likely to be detrimental to the environment when the weight of the social welfare in HSR objective function is high. Since the magnitude of the environmental friendliness of HSR compared to air transport hinges on the mix of energy sources used to generate the electricity (which is heavily constrained by the country in which HSR operates), regulators should assess the implications of HSR entry taking into account the energy policy and mitigation strategies available to transport modes.     

An exploration of the competitive relationship between intercity transport systems

A suitable model that enables the analysis of dynamic relationships between transport systems is important for managers to make real-time reaction strategies. This study proposes an autoregressive distributed lag modeling approach that can point a way to interpret the long- and short-term relationships between intercity transport systems. To test the applicability of the approach with regard to evaluating the dynamic competitive relationships between intercity transport systems, an empirical study sample is adopted in evaluating competition between high-speed rail (HSR) and intercity bus services. The results indicate that HSR has a long-run impact on intercity bus transport and the intercity bus transport market is positively affected by its previous operations and negatively influenced by the previous performance of HSR. However, in the short-run, the current period performance of HSR positively affects the intercity bus transport market.     

Forecasting demand for high speed rail

It is sometimes argued that standard state-of-practice logit-based models cannot forecast the demand for substantially reduced travel times, for instance due to High Speed Rail (HSR). The present paper investigates this issue by reviewing the literature on travel time elasticities for long distance rail travel and comparing these with elasticities observed when new HSR lines have opened. This paper also validates the Swedish long distance model, Sampers, and its forecast demand for a proposed new HSR, using aggregate data revealing how the air–rail modal split varies with the difference in generalized travel time between rail and air. The Sampers long distance model is also compared to a newly developed model applying Box–Cox transformations. The paper contributes to the empirical literature on long distance travel, long distance elasticities and HSR passenger demand forecasts. Results indicate that the Sampers model is indeed able to predict the demand for HSR reasonably well. The new non-linear model has even better model fit and also slightly higher elasticities.     

Private road competition and equilibrium with traffic equilibrium constraints

Toll road competition is one of the important issues under a build-operate-transfer (BOT) scheme, which is being encountered nowadays in many cities. When there are two or more competing firms and each firm operates a competitive toll road, their profits are interrelated due to the competitors' choices and demand inter-dependence in the network. In this paper we develop game-theoretic approaches to the study of the road network, on which multiple toll roads are operated by competitive private firms. The strategic interactions and market equilibria among the private firms are analyzed both in determining their supply (road capacity) and price (toll level) over the network. The toll road competition problems in general traffic equilibrium networks are formulated as an equilibrium program with equilibrium constraints or bi-level variational inequalities. Heuristic solution methods are proposed and their convergences are demonstrated with simple network examples. It is shown that private pricing and competition can be both profitable and welfare-improving.     

An optimization model of energy and transportation systems: Assessing the high-speed rail impacts in the United States

This paper presents a long-term investment planning model that co-optimizes infrastructure investments and operations across transportation and electric infrastructure systems for meeting the energy and transportation needs in the United States. The developed passenger transportation model is integrated within the modeling framework of a National Long-term Energy and Transportation Planning (NETPLAN) software, and the model is applied to investigate the impact of high-speed rail (HSR) investments on interstate passenger transportation portfolio, fuel and electricity consumption, and 40-year cost and carbon dioxide (CO₂) emissions. The results show that there are feasible scenarios under which significant HSR penetration can be achieved, leading to reasonable decrease in national long-term CO₂ emissions and costs. At higher HSR penetration of approximately 30% relative to no HSR in the portfolio promises a 40-year cost savings of up to $0.63 T, gasoline and jet fuel consumption reduction of up to 34% for interstate passenger trips, CO₂ emissions reduction by about 0.8 billion short tons, and increased resilience against petroleum price shocks. Additionally, sensitivity studies with respect to light-duty vehicle mode share reveal that in order to realize such long-term cost and emission benefits, a change in the passenger mode choice is essential to ensure higher ridership for HSR.     

Grand challenges for high-speed rail environmental assessment in the United States

The comprehensiveness of environmental assessments of future long-distance travel that include high-speed rail (HSR) are constrained by several methodological, institutional, and knowledge gaps that must and can be addressed. These gaps preclude a robust understanding of the changes in environmental, human health, resource, and climate change impacts that result from the implementation of HSR in the United States. The gaps are also inimical to an understanding of how HSR can be positioned for 21st century sustainability goals. Through a synthesis of environmental studies, the gaps are grouped into five overarching grand challenges. They include a spatial incompatibility between HSR and other long-distance modes that is often ignored, an environmental review process that obviates modal alternatives, siloed interest in particular environmental impacts, a dearth of data on future vehicle and energy sources, and a poor understanding of secondary impacts, particularly in land use. Recommendations are developed for institutional investment in multimodal research, knowledge and method building around several topics. Ultimately, the environmental assessment of HSR should be integrated in assessments that seek to understand the complementary and competitive configurations of transportation services, as well as future accessibility.     

Life cycle assessment of High Speed Rail in China

China has built the world’s largest High Speed Rail (HSR) network. Its environmental impacts have been examined by the means of life cycle assessment (LCA) which describes the whole picture of the HSR system instead of single stages, with a case study for the high-speed railway that links Beijing and Shanghai. The research employs the China-specific life cycle inventory database Chinese Core Life Cycle Database (CLCD). Vehicle operation dominates most impact categories, while vehicle manufacturing/maintenance/disposal and infrastructure construction contribute mostly to mineral consumption (43% and 38%) and organic compounds in water (54% for infrastructure construction). Several scenarios are developed to explore effects of changes in HSR development, utilization, electricity mix, and infrastructure planning and construction. Suggestions are provided for improving the life cycle environmental performance of China’s HSR systems.     

Does tourism degrade environmental quality? A comparative study of Eastern and Western European Union

The purpose of this paper is to investigate the effect of tourism on economic growth and carbon dioxide emissions in Eastern and Western European Union (EU) countries by incorporating FDI and trade in the production and CO₂ emission functions. We apply panel econometric techniques which account for cross-sectional dependence and heterogeneity. The results of Westerlund panel cointegration test confirm a long-run equilibrium relationship among the variables. Results from long-run elasticities suggest that tourism stimulates economic growth in Eastern and Western EU countries. However, tourism increases CO₂ emissions in Eastern EU but decreases in Western EU. This indicates that tourism has an adverse effect on the environment in Eastern EU. Finally, short-run heterogeneous panel causality test results suggest that tourism causes CO₂ emissions in Eastern EU while economic growth and CO₂ emissions cause tourism in Western EU. Overall, our findings suggest that tourism plays an important role in accelerating economic growth; however, its role on CO₂ emissions largely depends on the adaptation of sustainable tourism policies and efficient management.