The causal relationship between GDP and domestic air passenger traffic in Brazil

Abstract

This paper examines the causal relationship between economic growth and domestic air passenger transport in Brazil, using Granger's causality test. Total domestic passenger-kilometres are used as a proxy for air transport demand and gross domestic product as a proxy for economic growth. The test spans the period from 1966 to 2006. The results lead to the acceptance of the hypothesis that there is a unidirectional Granger causal relationship from economic growth to domestic air transport demand in Brazil, having a high elasticity in the short term.     

Causal linkages between highways and sector-level employment

While transport infrastructure investments have usually been viewed to have long-term impacts on employment, what is perhaps not immediately clear is the direction of causality. This paper has sought to disentangle the causal relationship between highway infrastructure and employment, using panel data for the 48 contiguous US states from 1984 to 1997. Of particular emphasis in this analysis is the sectoral differences in the causal and spatial effects of highway capacity expansions for employment growth in alternative sectors of the economy. The results indicate that lane-mile additions of own-state major highways could increase state employment growth in the services sector while reducing growth in manufacturing. However, the causal relationship is also found to work the other way around. That is, both the rapid growth in services employment and the slowdown in manufacturing jobs temporally lead to increases in roadway capacity of non-interstate major roads. Our analysis also shows that highway infrastructure could produce both positive and negative employment spillovers across states. We find that improvements in non-interstate major roads outside the state border are beneficial to the manufacturing sector which generally serves regional and national markets. For the services sector, however, employment gains from interstate highways in the same state may come at the expense of other states as there is clear evidence of negative employment spillovers from interstate lane-mile additions.     

Fuel demand,road transport pollution emissions and residents’ health losses in the transitional China

In recent years, China’s rapid economic growth resulted in serious air pollution, which caused substantial losses to economic development and residents’ health. In particular, the road transport sector has been blamed to be one of the major emitters. During the past decades, fluctuation in the international oil prices has imposed significant impacts on the China’s road transport sector. Therefore, inspired by Li and Zhou (2005), we propose an assumption that China’s provincial economies are independent “economic entities”. Based on this assumption, we investigate the China’s road transport fuel (i.e., gasoline and diesel) demand system by using the panel data of all 31 Chinese provinces except Hong Kong, Macau and Taiwan. To connect the fuel demand system and the air pollution emissions, we propose the concept of pollution emissions elasticities to estimate the air pollution emissions from the road transport sector, and residents’ health losses by a simplified approach consisting of air pollution concentrations and health loss assessment models under different scenarios based on real-world oil price fluctuations. Our framework, to the best of our knowledge, is the first attempt to address the transmission mechanism between the fuel demand system in road transport sector and residents’ health losses in the transitional China.     

Climate change and the contribution of transport: Basic facts and the role of aviation

There is a world-wide consensus that climate change policy has to be intensified to achieve reduction goals set for 2020 and 2050. But it is heavily debated which contribution should be expected from the transport sector. It is often argued that in the transportation sector CO₂ marginal mitigation costs are higher such that – together with high growth of transport activities – the reduction targets for this sector should be relaxed. Green transport policy is contrasting this view and underlines that considerable reductions of climate gases in the transport sector are possible without risking economic prosperity. The aviation industry is in the focus of this discussion and first attempts are being made in the European Union to integrate aviation in an emission trading system. It will be shown that the impact of this policy will be very low in the medium term and that additional measures are necessary to create enough incentives for the aviation industry to exploit their reduction potential.     

Breakthrough innovations in intermodal freight transport

Breakthrough innovations, whether technological, organizational or both, are a necessity if the market share of intermodal freight transport is to expand. The main growth potential lies in the markets for flows over short distances, for perishable and high-value commodities, for small consignments, and for flows that demand speed, reliability and flexibility. It will take radical innovations to produce a breakthrough in the modal split and allow these new markets to be conquered. This special issue is based on papers presented at an international conference on freight transport automation and multimodality, held in Delft in May 2002, that are illustrative of the direction of breakthrough research and development (R&D) aimed at increasing the market share for intermodal transport.     

Decouple transport CO2 emissions from China’s economic expansion: A temporal-spatial analysis

China’s transport industry is energy intensive and high-polluting. While with the surging urbanization and the development of service industry, China’s economic relies more and more on the transport sector. Therefore, exploring the relationship between transport energy-related carbon emission (TECE) and economic development is crucial to the realization of China’s “Post Paris” mitigation target. The paper carries out a decoupling research between TECE and Gross domestic product (GDP) at both national level and province level based on Logarithmic Mean Divisia Index (LMDI) decomposition analysis with the extended Kaya identity and Tapio decoupling model. The model quantifies eight factors’ effects on the relationship with focusing on external macro socio-economic related factors (i.e., spatial pattern, urbanization, per capita service industry output value, reciprocal of the service industry’s share of GDP, and demographic variable) successfully. The key conclusions are indicated as follows: (1) the national decoupling status was extensive coupling during 2004–2010 and then weak decoupling during 2010–2016. The progress can be attributed to the decline of energy intensity. (2) Per capita service output was always the prominent factor to promote carbon emissions growth in different time periods and provinces with inhibiting the advancement of decoupling process, followed by urbanization. (3) Scenario analysis shows that with the continuous growth of traffic demand and the promotion of urbanization, improving energy efficiency has become the key link to realize the decoupling between China’s TECE and its economy.     

Comparison of road freight transport trends in Europe. Coupling and decoupling factors from an Input–Output structural decomposition analysis

Decoupling road freight transport from economic growth has been acknowledged by the European Union as a key means to improving sustainability. It is therefore important to identify both the coupling and decoupling drivers of road freight transport demand in order to determine possible factors that may contribute to reduce road transport in the future without curbing economic development. This research proposes an Input–Output (IO) structural decomposition analysis (SDA) to explain road freight transport in terms of a set of key factors that have strongly influenced road freight demand in recent decades in European countries—such as economic growth, economic structure and the evolution of road transport intensity (including improvements in both supply and transport systems). This methodological approach allows us to quantify and compare their contribution in different European countries to either increase or decrease road freight transport demand. The empirical basis for this analysis is a dataset of nine European countries which have IO tables and road transport data available from 2000 to 2007, comprising data on domestic production, imports and exports as well as tonne-kms for 11 types of commodity classes. The results show that, as a whole, aggregate road transport demand has grown—driven mainly by economic activity—but this growth has been strongly curbed in some countries by changes in road freight transport intensity and moderately by the dematerialization of the economy. International transport has been also proven to be a key factor driving road freight transport volumes. Moreover, the increased penetration of foreign operators in national haulage markets appears to have reinforced the final decoupling levels observed in some cases.     

Long-run relationship among transport demand,income, and gasoline price for the US

Energy used in transport is a particularly important focus for environment-development studies because it is increasing in both developed and developing countries and is largely carbon-intensive. This paper examines whether a systemic, mutually causal, cointegrated relationship exists among mobility demand, gasoline price, income, and vehicle ownership using US data from 1946 to 2006. We find that those variables co-evolve in a transport system; and thus, they cannot be easily disentangled in the short-run. However, estimating a long-run relationship for motor fuel use per capita was difficult because of the efficacy of the CAFE standards to influence fleet fuel economy. The analysis shows that the fuel standards program was effective in improving the fuel economy of the US vehicle fleet and in temporarily lessening the impact on fuel use of increased mobility demand. Among the policy implications are a role for efficiency standards, a limited impact for fuel tax, and the necessity of using a number of levers simultaneously to influence transport systems.     

Transport infrastructure costs in low-carbon pathways

The rate and manner in which transport infrastructure (e.g. roads, railway tracks, airports) is deployed, will play an important role in determining energy demand, greenhouse gas emissions and the economic impact of the transport sector. This paper describes an exercise where the costs of infrastructure deployment for the transport sector have been incorporated into the IMACLIM-R Global E3 IAM. In addition to adding these costs, the modelling of the criteria for the deployment of infrastructure for roads has also been improved. It is found that this model recalibration results in a more accurate baseline as compared to historically observed data (2001–2013) for investments in energy demand, road infrastructure, and passenger kilometers travelled. Regarding macroeconomic effects, it is found that the imposition of a carbon emission trajectory to 2100 cause GDP to decrease relative to the newly calibrated baseline – this is a standard IAM result. However, when the deployment of infrastructure for roads and air travel is further constrained, the GDP loss is less than with a fixed carbon emission trajectory only. This is because early restriction of infrastructure for roads and air travel allows an expansion of public transport infrastructure which is adequate to meet low-carbon transport service demand whereas when less public transport infrastructure is available, more costly mitigation investments must be made in other parts of the economy. This suggests that restricting infrastructure deployment as a complementary policy to carbon pricing, lowers the cost of mitigation.     

A study of social and economic implications of mobile sources on air quality in Lebanon

The work presented in this paper is aimed at investigating the economic effects of air pollution from mobile sources on public health in Lebanon. It is part of the effort to implement MedPolicies Initiative of the Mediterranean Environmental Technical Assistance Program (METAP III whose objective is to encourage sustainable economic growth through the integration of environmental concerns in economic and fiscal policy-making in 13 Mediterranean countries. In each of these countries, the most significant sector is investigated. The transport sector in Lebanon is the predominant sector in terms of energy consumption and its associated air pollution impacts. A multidisciplinary effort is carried out for this purpose in which measurement and modeling of air pollution caused by motor vehicles, determination of the quantitative relationship between pollutants and public health, and an estimation of the effects of air pollution on public health have been carried out. This study is concluded by highlighting the mitigation options applicable for the country and for similar developing nations from social and economic points of view.     

Air itinerary shares estimation using multinomial logit models

ABSTRACT

The main goal of this study is the development of an aggregate air itinerary market share model. In order to achieve this, multinomial logit models are applied to distribute the city-pair passenger demand across the available itineraries. The models are developed at an aggregate level using open-source booking data for a large group of city-pairs within the US air transport system. Although there is a growing trend in the use of discrete choice models in the aviation industry, existing air itinerary share models are mostly focused on supporting carrier decision-making. Consequently, those studies define itineraries at a more disaggregate level using variables describing airlines and time preferences. In this study, we define itineraries at a more aggregate level, i.e. as a combination of flight segments between an origin and destination, without further insight into service preferences. Although results show some potential for this approach, there are challenges associated with prediction performance and computational intensity.     

Impacts of combining partial and general equilibrium modelling in freight transport analyses – a forest sector case study from Norway

Abstract

The forest sector in Norway is very transport intensive, accounting for approximately 14% of total domestic freight transport traffic on Norwegian roads. This paper presents an analysis linking a general equilibrium freight transport modelling tool with a partial equilibrium model of the forest sector. The freight transport model predicts transport costs, modal split and transport patterns, and the results are treated as inputs to the forest sector model. The objective of the paper is to analyse the modelling effect of taking forest sector model effects back into the freight transport model and treated as new demand. Compared to a base scenario for the year 2020, we compare analyses with and without this new demand from the forest sector model back into the freight transport modelling tool.     

The structure of intercity travel demands in Canada: Theory tests and empirical results

This paper presents results of an econometric study study of intercity travel demands in Canada, 1961–1976. A translog form of reciprocal indirect utility function is used to test the structure of preferences in five demand sectors: three travel modes, goods and other services. Travel sector preferences are found to be time- and season varying but independent of average weekly work hours. The aggregate results indicate that the demands for all three passenger modes are price-elastic; bus and rail exhibit moderate complementarity, while rail and air are weakly complementary. The most important result derived from our tests of separability was that the demand system for the three passenger modes is inextricably tied to the rest of the economy, and therefore, may not be studied in isolation from the goods and other services sectors.     

Transport economics: A personal view

The field of transportation attracts individuals from diverse backgrounds, seeking to make contributions to policy, planning, operations and strategy. Economists are one of the more visible subsets of players, who bring a specific focus to the transport problem. The key theme of this paper is economic efficiency and ways that transport economics seeks to achieve efficient outcomes in the presence of markets and institutions that to varying degrees distort the potential to fulfil this primary goal. We review some of the recent contributions to the literatures on institutional and market reform, travel choice and demand. As we enter the next century, there is a sense of promoting ‘back to basics’ (and redefinition of what skills transport specialists will require) in seeking a better understanding of the role of markets and institutions in guiding the destiny of the transport sector.     

Much Ado about Nothing? - An analysis of economic impacts and ecologic effects of the EU-emission trading scheme in the aviation industry

From 2012 on, all CO₂ emissions from flights departing from or arriving at airports within the European Union have to be offset. We analyze the economic and ecological impacts that are caused by an inclusion of the aviation industry into the proposed emissions trading scheme (ETS). Building on the now fixed system design we employ a simulation model to estimate the impacts of the scheme. Our results indicate that financial impacts are highly dependant on external settings, such as allowance prices and demand growth. We show that the financial burden on the aviation industry will be rather modest in the first years after the introduction of the system and therefore induce only low competition distortions. Likewise, emission reductions within air transportation will be comparably low. While aviation will induce a decline of emissions in other sectors, significant absolute reductions within air transportation can only be reached by a more restrictive system design.     

航空物流与区域经济高质量发展协同性——基于重庆的实证研究

自2017年十九大提出经济高质量发展以来,重庆根据中央部署,经济高质量发展取得了初步成功。在这一过程中,发现航空物流产业与区域经济高质量发展间存在正相关关系。为了研究重庆航空物流与区域经济高质量发展的协同性,采用数据包络分析(DEA)模型,对重庆市2008年至2018年GDP、航空货邮吞吐量等指标进行代入计算。结果表明,重庆航空物流与区域经济高质量发展存在较高的协同性,且呈现上升趋势,但由于航空物流和区域经济发展内部资源分配不合理,导致有效协同发展程度波动较大。结合重庆市实际情况,以资源配置优化为侧重点,提出提高二者协同性的建议。     

Economic effects of air transport market liberalization in Africa

Although the aviation industry is increasingly becoming important for Africa’s economic development and integration, the ability of airlines to access foreign markets remains hindered by restrictive regulatory policies. Attempts have been made to fully liberalize the intra-African air transport market. Except for general assertions about the merits/demerits of liberalization, our empirical understanding of the welfare effects of such polices in Africa remains rudimentary. This study empirically measures the economic effects of air transport liberalization, mainly on two supply side variables: fare and service quality, measured as departure frequency. The empirical models evaluate how air fares and departure frequency respond to measures of openness in air services agreements, while controlling for other determinants. The results show up to 40% increase in departure frequency in routes that experienced some type of liberalization compared to those governed by restrictive bilateral air service agreements. Furthermore, there is a relatively larger increase in departure frequency in routes which experienced partial liberalization compared to fully liberalized ones. This can be explained by the diminishing marginal effect of progressive liberalization on departure frequency. While the effect of liberalization is substantial in improving service quality, there is no evidence of its fare reducing effect.     

Imperfect reversibility of air transport demand: Effects of air fare,fuel prices and price transmission

There are recent evidence that air transport demand may not have a perfectly reversible relationship with income and jet fuel prices, as is assumed in most demand models. However, it is not known if the imperfectly reversible effects of jet fuel price are a result of asymmetries in the supply side, i.e., asymmetries in cost pass through from fuel prices to air fare, or of demand side behavioral asymmetries whereby people value gains and losses differently. This paper uses US time series data and decomposes air fare and fuel price into three component series to develop an econometric model of air transport demand that is capable of capturing the potential imperfectly reversible relationships and test for the presence or absence of reversibility. We find that air transport demand shows asymmetry with respect to air fare, indicating potential imperfect reversibility in consumer behavior. We also find evidence of asymmetry and hysteresis in cost pass-through from jet fuel prices to air fare, showing rapid increases in airfare when fuel prices increases but a slower response in the opposite direction.     

A scenario approach to airport evaluation in remote communities: with particular reference to the Pilbara region of Australia

Coordinated development of aviation facilities and services is critical for geographically remote communities. Improvements in aviation capability can be assisted by an analytical base for determining the implications of alternative configurations of air services in terms of links to be served, airport/aerodrome investment, type of flight equipment and flight frequency. We outline a method for identifying airport supply configurations to meet air service demand to and from the Pilbara region of north-west Australia. The approach emphasises minimum levels of demand required from a community in order to justify provision of air services of a given scenario. The method is influenced by the paucity of data on demand in remote communities, and the consequent risk of relying solely on demand-side forecasts of patronage levels. It is therefore particularly useful in assessing transport systems associated with remote resource development projects which are notable for the rapidity of change which they can bring. The approach has relevance to a wide range of transport applications.     

The asymmetric effects of income and fuel price on air transport demand

Forecasts of passenger demand are an important parameter for aviation planners. Air transport demand models typically assume a perfectly reversible impact of the demand drivers. However, there are reasons to believe that the impacts of some of the demand drivers such as fuel price or income on air transport demand may not be perfectly reversible. Two types of imperfect reversibility, namely asymmetry and hysteresis, are possible. Asymmetry refers to the differences in the demand impacts of a rising price or income from that of a falling price or income. Hysteresis refers to the dependence of the impacts of changing price or income on previous history, especially on previous maximum price or income. We use US time series data and decompose each of fuel price and income into three component series to develop an econometric model for air transport demand that is capable of capturing the potential imperfectly reversible relationships and test for the presence or absence of reversibility. We find statistical evidence of asymmetry and hysteresis – for both, prices and income – in air transport demand. Implications for policy and practice are then discussed.