Assessing the energy and greenhouse gas emissions mitigation effectiveness of potential US modal freight policies

This paper estimates the total embodied energy and emissions modal freight requirements across the supply chain for each of over 400 sectors using Bureau of Transportation Statistics Commodity Flow Survey data and Bureau of Economic Analysis economic input-output tables for 2002. Across all sectors, direct domestic truck and rail transportation are similar in magnitude for embodied freight transportation of goods and services in terms of ton-km. However, the sectors differ significantly in energy consumption, greenhouse gas emissions, and costs per ton-km. Recent pressure to reduce energy consumption and emissions has motivated a search for more efficient freight mode choices. One solution would be to shift freight transportation away from modes that require more energy and emit more (e.g., truck) to modes that consume and emit less (e.g., rail and water).Our results show there are no individual sectors for which targeting changes would significantly decrease the total freight transportation energy and emissions, therefore we have also looked at the prospect of policies encouraging many sectors to shift modes. There are four scenarios analyzed: (1) shifting all truck to rail, shifting top 20% sector mode choice, (2) based on their emissions, (3) based on a multi-attribute analysis, and (4) increasing truck efficiency (e.g., mpg). Increasing truck efficiency by 10% results in similar energy and emissions reductions (approximately 7% for energy and 6% for emissions) as targeting the top 20% of sectors when selected based on emissions, whereas selecting the top 20% based on availability to shift from truck results in slightly less reductions of energy and emissions. Implementing policies to encourage higher efficiency in freight trucks may be a sufficient short term goal while efforts to reduce truck freight transportation through sectoral policies are implemented in the long term.     

The impact of coordinated policies on air pollution emissions from road transportation in China

Improving air quality across mainland China is an urgent policy challenge. While much of the problem is linked to China’s broader reliance on coal and other fossil fuels across the energy system, road transportation is an important and growing source of air pollution. Here we use an energy-economic model, embedded in a Regional Emissions Air Quality Climate and Health (REACH) integrated assessment framework, to analyze the impacts of implementing vehicle emissions standards (ES) together with a broader economy-wide climate policy on total air pollution in five species and 30 Chinese provinces. We find that full and immediate implementation of existing vehicle ES at China 3/III level or tighter will significantly reduce the contribution of transportation to degraded air quality by 2030. We further show that road transport ES function as an important complement to an economy-wide price on CO₂, which delivers significant co-benefits for air pollution reduction that are concentrated primarily in non-transportation sectors. Going forward, vehicle emissions standards and an economy-wide carbon price form a highly effective coordinated policy package that supports China’s air quality and climate change mitigation goals.     

Enhanced traffic information dissemination to facilitate toll road utilization: a nested logit model of a stated preference survey in Texas

This paper investigates the effects of the provision of traffic information on toll road usage based on a stated preference survey conducted in central Texas. Although many researchers have studied congestion pricing and traffic information dissemination extensively, most of them focused on the effects that these instruments individually produce on transportation system performance. Few studies have been conducted to elaborate on the impacts of traffic information dissemination on toll road utilization. In this study, 716 individuals completed a survey to measure representative public opinions and preferences for toll road usage in support of various traffic information dissemination classified by different modes, contents, and timeliness categories. A nested logit model was developed and estimated to identify the significant attributes of traffic information dissemination, traveler commuting patterns, routing behavior, and demographic characteristics, and analyze their impacts on toll road utilization. The results revealed that the travelers using dynamic message sign systems as their primary mode of receiving traffic information are more likely to choose toll roads. The potential toll road users also indicated their desire to obtain traffic information via internet. Information regarding accident locations, road hazard warnings, and congested roads is frequently sought by travelers. Furthermore, high-quality congested road information dissemination can significantly enhance travelers’ preferences of toll road usage. Specifically the study found that travelers anticipated an average travel time saving of about 11.3 min from better information; this is about 30 % of travelers’ average one-way commuting time. The mean value of the time savings was found to be about $11.82 per hour, close to ½ of the average Austin wage rate. The model specifications and result analyses provide in-depth insights in interpreting travelers’ behavioral tendencies of toll road utilization in support of traffic information. The results are also helpful to shape and develop future transportation toll system and transportation policy.     

A framework for evaluating the dynamic impacts of a congestion pricing policy for a transportation socioeconomic system

This paper provides a modeling framework based on the system dynamics approach by which policy makers can understand the dynamic and complex nature of traffic congestion within a transportation socioeconomic system representation of a metropolitan area. This framework offers policy makers an assessment platform that focuses on the short- and long-term system behaviors arising from an area-wide congestion pricing policy along with other congestion mitigation policies. Since only a few cities in the world have implemented congestion pricing and several are about to do so, a framework that helps policy makers to understand the impacts of congestion pricing is currently quite relevant. Within this framework, improved bus and metro capacities contribute to the supply dynamics which in turn affect the travel demand of individuals and their choice of different transportation modes. Work travel and social networking activities are assumed to generate additional travel demand dynamics that are affected by travelers’ perception of the level of service of the different transportation modes, their perception of the congestion level, and the associated traveling costs. It is assumed that the, population, tourism and employment growth are exogenous factors that affect demand. Furthermore, this paper builds on a previously formulated approach where fuzzy logic concepts are used to represent linguistic variables assumed to describe consumer perceptions about transportation conditions.     

Measuring foregone output under industry emission reduction target in the transportation sector

Numerous countries have implemented or are considering a range of policies to lower emissions from transportation. An analysis of the impacts of environmental regulation is a crucial issue, which has not been properly highlighted in the transportation literature, particularly in terms of the foregone output by such regulation. This study develops a novel DEA model that measures the foregone output when the industry emissions target is imposed. This model reflects the real regulatory process more appropriately than other models in that the authority in charge sets the emission reduction target first, and the transport operators respond to it. In addition, the model can test the industrywide impacts over a wide range of emission target values, which can help policy makers determine the optimal emission target. Finally, the proposed model was applied to the port industry in Korea. The results suggest that Korean ports can reduce their emissions by a maximum of 239,850 tons of CO₂, which accounts for 13% of the total emissions in 2010. The 13% reduction in emission, however, would result in $ 91,109,000 of foregone cargo traffic to the Korean economy. In addition, the foregone cargo traffic increases at much faster rate than the emission reduction rate. For example, the shadow price of emission differs by 2.25 times between the most moderate and strictest emission targets. This suggests that the government needs to impose moderate emission targets at the initial stages if it decides to minimize the regulatory impacts on the industry.     

Transportation and income inequality in China: 1978–2007

This paper mainly studies how various types of transportation modes are associated with income inequality in China for the years between 1978 and 2007. Gini coefficients are used to measure the income inequality nationwide, and within urban and rural areas of China. Factors other than transportation are also considered in the regression model, including a few demographic variables and major economic indicators. We contribute to the literature by examining the income redistributive effects of transport infrastructure and services, and providing transport planning and policy guidance which may alter the orientation of public policy and help alleviate the growing social and economic imbalance in China.     

The spatial productivity of transportation infrastructure

Transportation infrastructure services may cause an impact on the economy of the region in which they are located and, additionally, they are likely to have an impact on other regions. This effect has been labeled the spillover effect. In this study, the existence of direct and spillover effects of road, railway, airport and seaport infrastructure projects is tested by estimating a production function. Together with this primary objective, two common concerns in the literature are addressed: the lack of theoretical foundations for spatial econometrics models and the likely endogenous relationship between transport infrastructure and economic development. The estimated production function takes the form of a Spatial Durbin Model and is estimated using panel data from the 47 peninsular Spanish provinces by alternatively applying a Maximum Likelihood estimator and Instrumental Variables/Generalized Method of Moments estimators. According to the estimates, road transport infrastructure positively affects the output of the region in which the infrastructure is located and its neighboring provinces, while the remaining modes of transportation projects cause no significant impacts on average.     

Simulating deep CO2 emission reduction in transport in a general equilibrium framework: The GEM-E3T model

Transport sector restructuring to achieve deep GHG emission cuts has attracted much attention because transportation is important for the economy and inflexible in greenhouse gas emission reduction. The aim of this paper is to simulate transition towards low carbon transportation in the European Union until 2050 and to assess the ensuing macroeconomic and sectorial impacts. Transport restructuring is dynamically simulated using a new transport-oriented version of the computable general equilibrium model GEM-E3 which is linked with the PRIMES-TREMOVE energy and transport sectors model. The analysis draws from comparing a reference scenario projection for the EU member-states up to 2050 to alternative transport policy scenarios and sensitivities which involve deep cutting of CO₂ emissions. The simulations show that transport restructuring affects the economy through multiple channels, including investment in infrastructure, the purchasing and manufacturing of new technology vehicles, the production of alternative fuels, such as biofuels and electricity. The analysis identifies positive impacts of industrial activity and other sectors stemming from these activities. However, the implied costs of freight and passenger transportation are of crucial importance for the net impact on GDP and income. Should the transport sector transformation imply high unit costs of transport services, crowding out effects in the economy can offset the benefits. This implies that the technology and productivity progress assumptions can be decisive for the sign of GDP impacts. A robust conclusion is that the transport sector decarbonisation, is likely to have only small negative impacts on the EU GDP compared to business as usual.     

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.     

An integrated transportation decision support system for transportation policy decisions: The case of Turkey

From the point of view of the feasibility of providing growth in road capacity parallel to the predicted growth in traffic as well in terms of impact on the environment and health, current trends in transportation are unsustainable. Transport problems are expected to worsen due to the fact that worldwide automobile ownership tripled between 1970 and 2000, and the movement of goods is projected to increase by 50% by 2010. Similar trends can be seen in an even more dramatic way in Turkey. The Turkish transport network has not followed a planned growth strategy, due to political factors. There is no transportation master plan which aims to integrate the transport modes in order to provide a balanced, multimodal system. This study proposes a decision support system that guides transportation policy makers in their future strategic decisions and facilitates analysis of the possible consequences of a specific policy on changing the share of transportation modes for both passenger and freight transportation. For this purpose, based on the wide spectrum of critical issues encountered in the transportation sector, several scenarios have been built and analysed.     

An empirical analysis of freight transport traffic modes in Brazil, 1996–2012

This paper analyses the performance of freight transportation modes in Brazil – namely air, water, rail and road – from February 1996 to August 2012 by investigating their long memory properties using fractional integration and autoregressive models on monthly tonnage data. Two important features are analysed: the degree of dependence of transportation traffic across time and its seasonal structure over the period. Furthermore, the stability of parameters across the sample period is investigated, incorporating potential structural breaks in the data, which describe discontinuity in freight transportation traffic. Some policy implications are derived.     

Coal transportation: An undervalued aspect of energy modeling?

Changes in the supply of, and demand for, energy are reflected by the spatial pattern of energy flows. Review of energy modeling research indicates that while supply and demand variables are highly disaggregated, other aspects, such as transportation, are represented in more generalized form. Consistent economic and geographic scales are vital to the successful application of energy models to policy formulation and decision-making. Consistency of scale is examined between models and within models. Internal inconsistency of scale is demonstrated in two complex coal models which fail to provide sufficient detail on transportation characteristics. Since transportation characteristics are a major influence on the allocation of coal, insufficient disaggregation introduces error components that result in regional bias. Solutions may be found in improved model specification, transportation submodels, and rigorous sensitivity analysis of spatial error distribution.     

The underground economy: Tracking the higher-order economic impacts of the São Paulo Subway System

Over one million workers commute daily to São Paulo City center, using different modes of transportation. The São Paulo subway network reaches 74.2 km of length and is involved in around 20% of the commuting trips by public transportation, enhancing mobility and productivity of workers. This paper uses an integrated framework to assess the higher-order economic impacts of the existing underground metro infrastructure. We consider links between mobility, accessibility and labor productivity in the context of a detailed metropolitan system embedded in the national economy. Simulation results from a spatial computable general equilibrium model integrated to a transportation model suggest positive economic impacts that go beyond the city limits. While 32% of the impacts accrue to the city of São Paulo, the remaining 68% benefit other municipalities in the metropolitan area (11%), in the State of São Paulo (12.0%) and in the rest of the country (45%).     

The analysis of travel and emission impacts of travel demand management strategies using activity-based models

This paper demonstrates, tests and shows the value of activity-based travel demand models and household sample enumeration forecasting techniques in evaluating the transportation and air quality impacts of travel demand management strategies. Using data from the Portland, Oregon metropolitan area, three transportation policies were evaluated both individually and in combination: transit improvements, pricing, and telecommunications. The activity-based models used in this testing represents a significant improvement to today's "four-step" sequential model systems by providing a deeper insight into the individual decision making process in response to transportation policies. A wider range of impacts is predicted, and indirect effects as well as synergistic effects of such policies are taken into consideration. These models are capable of providing the information needed to improve the linkage of transportation models with emissions and air quality analysis methodologies by improving the prediction of variables that are important to accurately estimating emissions and air quality impacts of transportation actions.     

Efficiency of European Funds in the Accession Countries: The Case of Transport Infrastructure Investments in Latvia

ABSTRACT

A transport initiative, like any kind of public action, has an impact on the monetary cost, time cost, efficiency and comfort of the transportation of goods and people, in particular transport infrastructure investments. All such initiatives are subject to cost benefit analyses at the national and EU level to know whether the present value of total net benefits including environmental impacts exceeds their cost. However, several important policy issues remain unresolved in standard evaluation procedures. One issue is whether the so-called direct measurement of user benefit, which consists of quantifying changes in surplus of the users of the transport system, captures all welfare generated in the economy. Another issue is how the gains (or possibly losses) of a transport initiative are distributed among regions. The aim of this article is to perform a systematic and quantitative analysis of the socio-economic and spatial impacts of alternative transport investments by carrying out scenario simulations in order to improve the understanding of the impact of transportation policies on the short- and long-term spatial development in Latvia. The general result from the scenario simulations is that rail projects seem to be more effective in terms of promoting regional economic activity than road projects.     

A decision analysis framework for intermodal transport: Comparing fuel price increases and the internalisation of external costs

This paper presents the impact of fuel price increases on the market area of intermodal transport terminals. Aim of this research is to determine whether an increase in fuel prices is sufficient enough to raise the market area of intermodal transport to the same degree that would be accomplished by stimulating intermodal transport through policy instruments. Therefore, several fuel price scenarios are analysed in order to verify the impact of different fuel price evolutions on the market area of unimodal road transport compared to intermodal transport in Belgium. The LAMBIT-model (Location Analysis for Belgian Intermodal Terminals), which is a GIS-based model (Macharis and Pekin, 2008), is used to analyse the different fuel price increases and enables a visualisation of the impact on the market area. The LAMBIT model incorporates the different network layers for each transport mode by setting up a GIS network that includes four different layers: the road network, the rail network, the inland waterways network and the final haulage network. The geographic locations of the intermodal terminals and the port of Antwerp are added as nodes in the network and the Belgian municipality centres are defined and connected to the different network layers. Based on the different fuel price scenarios representing respectively a fuel price increase with 10% (low price case), 50% (business as usual case) and 90% (high price case), the results of the LAMBIT model show that the market areas rise in favour of intermodal barge/road and intermodal rail/road. Depending on the scenario, the degree of modal shift however differs. Additionally, in order to compare policy measures with the effect of a fuel price increase, the internalisation of the external costs is analysed with the LAMBIT model. For some years, the European Commission is supporting the idea that transportation costs should reflect the true impacts on environment and society, and is relentlessly pushing towards the so called ‘internalisation of external costs’ as a policy instrument in order to establish fair and efficient pricing of different transport modes. This requires monetarizing the external effects of transport and adding them to the already internalized costs in order to give the correct price signals. Results of this comparative analysis performed with the LAMBIT model are also presented in this paper.     

Economic resilience to transportation failure: a computable general equilibrium analysis

This study develops and applies a multimodal computable general equilibrium (CGE) framework to investigate the role of resilience in the economic consequences of transportation system failures. Vulnerability and economic resilience of different modes of transportation infrastructure, including air, road, rail, water and local transit, are assessed using a CGE model that incorporates various resilience tactics including modal substitution, trip conservation, excess capacity, relocation/rerouting, and service recapture. The linkages between accessibility, vulnerability, and resilience are analyzed. The model is applied to the transportation system failures in the aftermath of Hurricane Katrina to illustrate its capabilities. The analytical framework, however, has broader applications and can provide insights for resource allocations to enhance emergent responses to unexpected events and to improve resilient design of transportation infrastructure systems.     

External costs of the Belgian interurban freight traffic: a network analysis of their internalisation

The strong expansion of freight road transports throughout Europe is an important source of congestion and pollution, as well as a cause of many accidents. To solve this problem will require the conjunction of many different remedies. One element of solution would be the promotion and substitution of transportation modes with less negative effects. This paper is focused on this solution. It presents some results obtained from a detailed GIS modelling of the Belgian multimodal freight transport network inserted within the overall trans-European network. It outlines the results of a simulation of the flows over the Belgian network in 1995 which allows to estimate some of the costs of several external effects of freight transports: the costs of pollution, congestion, accidents, noise and road damages. This paper provides also the simulated impacts on modal choice of a marginal external cost internalisation, and an estimation of the corresponding external cost savings.     

A highway capacity function in Korea: Measurement and calibration

Capacity functions are important in the model that accounts for the user's route choice behavior based on the traveller's perception of the travel time. This is because a capacity function represents the relationship between the traffic volume and the travel time on the link. The capacity function developed by the U.S. Bureau of Public Roads (BPR) has been used in many countries, including Korea, without much effort to calibrate the parameters for its own transportation environment. Countries other than the United States, however, have distinctive demographic, economic, cultural, and behavioral characteristics; and they might need unique capacity functions for their own environments. Thus, it is important for Korea to have its own capacity function that can appropriately represent the Korea highway environment. Any attempt to model the Korean highway system without using a suitable capacity function might result in inappropriate solutions, because most modeling activities are crucially based on link travel time, and it is the capacity function that furnishes those link travel time. A link capacity function for Korea is calibrated based on a BPR type formula utilizing an alternative method. The alternative method is developed in a bilevel programming framework that uses link volume counts instead of link flow and travel time data. Detailed calibration results are reported.     

Commercially managed road funds: managing roads like a business,not like a bureaucracy

Nearly all countries are seriously short of revenues for investment and maintenance of roads. Improving utilization of the existing road budget has helped to narrow, but not eliminate, this financing gap. Requests for additional resources from the government's budget have fallen on deaf ears, because the road sector has grown too large to be fully-financed through general tax revenues. Government tax systems were not designed to finance major economic sectors like roads. Faced with an acute shortage of funds, many road agencies have introduced tolls on high-volume roads and have invited the private sector to build and operate such roads under concession agreements. Although this has narrowed the financing gap, tolling is only economic on a small part of the road network. Tolls have thus had a relatively small impact on the financing gap. Against this background, and mindful of the fact that roads are now 'big business' on the scale of the Fortune Global 500, a growing number of countries have started to 'bring roads into the market place, put them on a fee-for-service basis and manage them like a business.' The fee-for-service concept, though superficially like the user-pay principle and the associated road funds which became popular during the 1950s, differs from user-pay in a number of important respects. The key differences are that: (i) only road user charges go into the road fund (i.e., there are no earmarked taxes); (ii) the fund is managed by a representative board with half or more members representing road users and the business community; (iii) members are nominated by the constituencies they represent and there is an independent chairperson; (iv) financing arrangements are designed to ensure that money is not diverted from other sectors; (v) funds are managed pro-actively by a small secretariat; (vi) there are published financial regulations governing the way funds are managed; (vii) charges are adjusted regularly to meet agreed expenditure targets; and (viii) there are regular technical and financial audits. Other important characteristics are that most commercially managed road funds are managed through a separate road fund administration, funds are channeled to all roads (sometimes even to unclassified roads) and they are introduced as part of a wider agenda to commercialize road management. Some of these road funds have been set up as road public utilities under a board with powers to set their own tariffs.