Refocusing the Modelling of Freight Distribution: Development of an Economic-Based Framework to Evaluate Supply Chain Behaviour in Response to Congestion Charging

The distribution of freight is a major contributor to the levels of traffic congestion in cities. However it is much neglected in the research and planning activities of government, where the focus is disproportionately on passenger vehicle movements. Despite the recent recognition of the contribution of freight transportation to the performance of urban areas under the rubric of city logistics, we see a void in the study of how the stakeholders in the supply chain might cooperate through participation in distribution networks, to reduce the costs associated with traffic congestion. Given that transport costs are typically over 45 of all distribution costs, with congestion a major contributor in the urban setting, the importance of establishing ways in which supply chain partnerships might cooperate to reduce levels of freight vehicle movements has much merit. This paper sets out a framework to investigate how agents in a retail supply chain might interact more effectively to reduce the costs of urban freight distribution. We propose an interactive agency choice method as a way of formalising a framework for studying the preferences of participants in the supply chain to support specific policy initiatives. Such a framework is a powerful way of investigating the behavioural response of each agent to many policies, including congestion pricing, as a way of improving the efficient flow of traffic in cities.     

The implications on willingness to pay of respondents ignoring specific attributes

Individuals processing the information in a stated choice experiment are typically assumed to evaluate each and every attribute offered within and between alternatives, and to choose their most preferred alternative. However, it has always been thought that some attributes are ignored in this process for many reasons, including a coping strategy to handle ones perception of the complexity of the choice task. Nonetheless, analysts typically proceed to estimate discrete choice models as if all attributes have influenced the outcome to some degree. The cognitive processes used to evaluate trade-offs are complex with boundaries often placed on the task to assist the respondent. These boundaries can include prioritising attributes and ignoring specific attributes. In this paper we investigate the implications of bounding the information processing task by attribute elimination through ignoring one or more attributes. Using a sample of car commuters in Sydney we estimate mixed logit models that assume all attributes are candidate contributors, and models that assume certain attributes are ignored, the latter based on supplementary information provided by respondents. We compare the value of travel time savings under the alternative attribute processing regimes. Assuming that all attributes are not ignored and duly processed, leads to estimates of parameters which produce significantly different willingness to pay (WTP) to that obtained when the exclusion rule is invoked.     

Estimating the willingness to pay and value of risk reduction for car occupants in the road environment

In recent years there has been a re-focus on the valuation of a statistical life from the ex post or human capital method to an ex ante willingness to pay (WTP) approach. This is in part a recognition that we may have been undervaluing the cost of fatalities and injuries to society associated with crashes, but also a strong belief in the need to focus on establishing the amount, ex ante, that individuals are willing to pay to reduce the risk of exposure to circumstances that might lead to death or degree of injury on the road network. This study has developed a framework in which to identify the degree of preference heterogeneity in willingness to pay by individuals who are drivers or passengers in cars to avoid being killed or injured. A stated choice experiment approach is developed. The empirical setting is a choice of route for a particular trip that a sample of individuals periodically undertakes in Australia. The particular trip is described in enough detail to provide the respondent with a familiar market environment, providing all the relevant background information required for making a decision. Mixed logit models are estimated to obtain the marginal (dis)utilities associated with each influence on the choice amongst the attribute packages offered in the stated choice scenarios. These estimates are used to obtain the WTP distributions for fatality and injury avoidance, which are then aggregated to obtain estimates of the value of risk reduction (VRR), of which the fatality class is also known as the value of a statistical life (VSL).     

CO2 emissions: Are land-use changes enough for California to reduce VMT? Specification of a two-part model with instrumental variables

With vehicle miles of travel increasing at a faster pace than population, one strategy being actively pursued by both state and local governments is compact development. California recently passed legislation that aggressively promotes sustainability by endorsing and rewarding compact development. Likewise, the California Air Resources Board has set a statewide reduction target of 5MMT of greenhouse gas reductions from land use, based largely on achieving compact development patterns. In this paper, we use a multivariate two-part model with instrumental variables, which corrects for residential location self-selection bias. We use a much larger and more geographically representative travel survey on household travel patterns and socio-economic characteristics than represented in previous California studies; this allows us to robustly consider other influences on travel. Our results indicate that, all else equal, a 10% in residential density would reduce VMT by 1.9%. This elasticity is larger than the reported in previous econometric studies for the US, and specifically for California. However, as we show, the magnitude of this impact is still low considering reasonable ranges for policies aimed to increase residential density.     

Work and home location: Possible role of social networks

This research explores to what extent people’s work locations are similar to that of those who live around them. Using the Longitudinal Employer-Household Dynamics data set and the 2000 decennial census, we investigate the home and work locations of different census block residents in the Twin Cities (Minneapolis-St. Paul) metropolitan area. Our aim is to investigate if people who share a residence neighborhood also share work locations to a degree beyond what would be explained by distanhe observed patterns is the role neighborhood level and work place social networks play in locating jobs and residences respectively.     

The impact of strategic management and fleet planning on airline efficiency - A random effects Tobit model based on DEA efficiency scores

As a result of the liberalisation of airline markets; the strong growth of low cost carriers; the high volatility in fuel prices; and the recent global financial crisis, the cost pressure that airlines face is very substantial. In order to survive in these very competitive environments, information on what factors impact on costs and efficiency of airlines is crucial in guiding strategic change. To evaluate key determinants of 58 passenger airlines’ efficiency, this paper applies a two-stage Data Envelopment Analysis (DEA) approach, with partially bootstrapped random effects Tobit regressions in the second stage. Our results suggest that the effects of route optimisation, in the sense of average stage length of the fleet, are limited to airline technical efficiency. We show that airline size and key fleet mix characteristics, such as aircraft size and number of different aircraft families in the fleet, are more relevant to successful cost management of airlines since they have significant impacts on all three types of airline efficiency: technical, allocative and, ultimately, cost efficiency. Our results also show that despite the fuel saving benefits of younger aircraft, the age of an airline’s fleet has no significant impact on its technical efficiency, but does have a positive impact on its allocative and cost efficiency.     

Scientific research about climate change mitigation in transport: A critical review

This paper seeks to develop a deeper understanding of the research on climate change mitigation in transport. We suggest that work to date has focused on the effects of improvements in transport technologies, changes in the price of transport, physical infrastructure provision, behavioural change and alternative institutional arrangements for governing transport systems. In terms of research methodologies, positivist and quantitative analysis prevails, although there are signs of experimentation with non-positivist epistemologies and participatory methods. These particular engagements with climate change mitigation reflect mutually reinforcing tendencies within and beyond the academic transport community. We first draw on a revised version of Thomas Kuhn’s philosophy of science to explore the path dependencies within transport studies, which are at least partly responsible for the predisposition towards quantitative modelling and technology, pricing and infrastructure oriented interventions in transport systems. We then employ the governmentality perspective to examine how transport academics’ engagements with climate change mitigation depend on and align with more general understandings of climate change in UK society and beyond. The analysis makes clear that ecological modernisation and neo-liberal governmentality more generally provide the context for the current focus on and belief in technological, behaviour change, and especially market-based mitigation strategies. While current research trajectories are important and insightful, we believe that a deeper engagement with theoretical insights from the social sciences will produce richer understandings of transport mitigation in transport and briefly outline some of the contributions thinking on socio-technical transitions and practice theories can make.     

Accident cost saving and highway attributes

Two semi-logarithmic regression models are developed to estimate accident rates and accident costs, respectively, for rural non-interstate highways in the state of Iowa. Data on 21,224 accidents occurring between 1989 and 1991 on 17,767 road segments are used in the analysis. Seven road attributes of these road segments are included as predictor variables. Applying the resulting regression models to a rather typical highway upgrade situation, the present value of the accident cost saving is computed. The sensitivity of the estimated cost saving to values for fatal, personal injury, and property damage only accidents is tested.Because factors other than road characteristics greatly influence accident costs, the models developed in this research explain a limited amount of the variance in these costs among road segments. Results of the analysis indicate that the most important attribute associated with accident costs is average daily traffic per lane, followed by conditions requiring passing restrictions and the sharpness of curves. Varying the values for the three categories of accidents shows that results are far more sensitive to the value of personal injuries than fatalities. The feasibility of using predictive models of accident costs in benefit-cost analyses of highway investments is demonstrated.     

An alternative formulation of the simultaneous route and departure-time choice equilibrium problem

Traditional (static) network equilibrium models have always been formulated in a route-based fashion rather than a vehicle-based fashion. That is, the decision variables have been the number of vehicles using each route rather than the route choices of each vehicle. Given the success of this approach, it is not surprising that recent “dynamic” network equilibrium models have been formulated in a similar way. That is, the decision variables in these models are usually the route-specific departure rates over time. In this paper, we develop a vehicle-based equilibrium model of simultaneous route and departure-time choice and discuss the possible advantages of this approach. We then describe a heuristic for solving this model and demonstrate its effectiveness on several small examples.     

Autonomous and conventional bus fleet optimization for fixed-route operations considering demand uncertainty

Transportation - The emerging technology of autonomous vehicles has been widely recognized as a promising urban mobility solution in the future. This paper considers the integration of autonomous...