Credible commitment and congestion pricing

Transportation analysts frequently assert that congestion pricing’s political obstacles can be overcome through astute use of the toll revenue pricing generates. Such “revenue recycling,” however, implies that the collectors of the toll revenue will not be its final recipients, meaning that any revenue recipient must believe that the revenue collector will honor promises to deliver the money. This raises the potential for credible commitment problems. Promises to spend revenue can solve one political problem, because revenue is an easy benefit to understand, but create another one, because revenue is easy to divert. Revenue recycling may therefore not be a promising way to build political support for congestion pricing. We highlight the role commitment problems have played efforts to implement congestion pricing, using examples from around the world and then focusing on California. Because congestion reduction is a more certain benefit than any particular use of the toll revenue, demonstration projects, rather than revenue promises, will be key to pricing’s political success.     

Vocational and academic approaches to maritime education and training (MET): Trends,challenges and opportunities

Traditional seafarer training has always focused on the acquisition and use of practical skills. The prevailing view is that, while this approach addresses a degree of cognitive skills, it focuses on and gives much more emphasis to the acquisition of hands-on practical skills for the performance of specific tasks. On the other hand, academic education has been seen to be much more focused on the development of in-depth analytical and critical thinking skills; cognitive skills that are less reliant on hands-on task-oriented training, but stress critical reading and discussion. The global trend in maritime education and training is increasingly to link an essentially vocational education that provides specific and restricted competence outcomes with more general or deeper academic components leading to an academic qualification. This trend has led to some dilemmas for curriculum development, for training legislation in a global industry, and for achieving desired learning outcomes in a professional setting (in the shipping industry). This paper discusses some of the challenges arising from this trend and the opportunities the trend offers.     

The cost saving potential of carsharing in a US context

Carsharing is a vehicle sharing service for those with occasional need of private transportation. Transportation planners are beginning to see great potential for carsharing in helping to create a more diversified and sustainable transport system. While it has grown quickly in the US in recent years, it is still far from the level where it can deliver significant aggregate benefits. A key element to the potential growth of carsharing is its ability to provide cost savings to those who adopt it in favor of vehicle ownership. This research seeks to quantify these potential cost savings. The costs of carsharing and vehicle ownership are compared based on actual vehicle usage patterns from a large survey of San Francisco Bay Area residents. The results of this analysis show that a significant minority of Bay Area households own a vehicle with a usage pattern that carsharing could accommodate at a lower cost. Further research is required to indentify how these cost savings translate to the adoption of carsharing.     

Examining the influence of firm performance on business risk-taking and the mediation effect of scale of operations in the container terminal industry

Container shipping and its related service sectors help accelerate globalization of the world economy. This industry has been experiencing rapid growth, prompting container terminal operators to increase their handling capacity in response. Providing container terminal services requires substantial capital investment in physical assets such as cargo handling facilities and information systems. On the other hand, operating container terminals is a long-term investment that typically spans several business cycles. Hence prudent asset management using appropriate tools is critical for container terminal operators to sustain their businesses. Generally, due to risk-adverseness, investors are unwilling to take more risk in their investment unless they can reap a higher return. Contrary to this argument, this study finds no direct influence of better firm performance as a proxy of higher return on business risk-taking by container terminal operators. Instead, scale of operations is positively associated with business risk-taking, suggesting that container terminal operators with a larger scale of operations are willing to take more business risk.     

The Bid-rent Land Use Model of the simple,efficient, elegant,and effective model of land use and transportation

Integrated land use/transportation forecasting models add significant policy and infrastructure alternatives analysis capabilities to the urban planning process. The financial, time, and staff requirements to develop these models has put them beyond the reach of most small to medium sized urban areas. This paper presents the land use allocation submodel of the Simple, Efficient, Elegant, and Effective model of land use and transportation (SE³M), an integrated land use and transportation forecasting model founded upon Economic Base Theory and Bid-rent Theory. The Bid-rent Land Use Model (BLUM) is an agent based, spatial competition model utilizing unique utility curves for willingness to pay and incomes for budget constrained abilities to pay for each agent. The model structure, estimation, calibration, implementation, and validation are presented. With a single year of land use data available, the validation approach used the Kappa Index of Agreement to spatially check model outputs against base year control data while controlling for agreement by chance. The U.S. territory of Guam is used as the case study/proof of concept implementation for this model framework. Once calibrated, BLUM could solve the spatial competition problem on Guam in less than two minutes of processing time with over 90% accuracy.     

The dynamic relationships between paper petroleum refining and physical trade of crude oil into the United States

This article examines the relationship between refinery margins traded on paper using petroleum futures (the paper refinery) and the physical trade of crude oil into the US. Computations of a 3:2:1 crack spread were constructed using daily observations of second- and third-nearby unleaded gasoline and heating oil futures contracts traded on the New York Mercantile Exchange (NY MEX) and spot Brent crude oil prices. The crack spread represents the margin between the cost of crude oil feed stock today and the value of the products produced by a refinery in the future. Unit root tests on each of the time series found crack spreads to be stationary while crude oil imports were found to be non-stationary. A s the two series were found to be integrated of different order, cointegration analysis of the two series was not deemed appropriate. Instead, linear relationships between crack spreads and imports were examined using causality tests. It was found that the 2-month 3:2:1 crack spread Granger-causes crude oil imports and that this causality is unidirectional. The significance of these findings lies in the fact that other industries like tanker shipping derive their demand from the demand for, and trade in, petroleum. Crack spreads, therefore, can provide a leading indicator for short term developments in tanker demand. For a chartering manager who has ships on the spot market, crack spreads can help him/her anticipate demand developments and influence vessel deployment and chartering decisions.