Effects of train speed on airline demand and price: Theory and empirical evidence from a natural experiment

Wang, Kun; Xia, Wenyi; Zhang, Anming; Zhang, Qiong

doi:10.1016/j.trb.2018.05.017

Cited by 81 publications

(27 citation statements)

References 48 publications

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“…Zhang and Lu (2013) and Wang et al (2018) find that China's LCCs have the effect of reducing the airfares and promoting the demand for air travel, but they are not game changers as China's aviation policy is overly protective of the state-owned airlines, and the LCCs do have access to most of the profitable markets Yu et al, 2019;Wu et al, 2020).…”

Section: Econometric Modelmentioning

confidence: 99%

“…As a good substitute for air, the entry of HSR is expected to increase competition when an origin and destination market definition includes both HSR and air transport. Previous literature has well documented that the air-HSR substitutability varies largely upon route distance (Wan et al, 2016;Wang et al, 2018). Following Wang et al (2018), we group the routes into two categories: shorter than 850 km and longer than 850 km.…”

Section: Coefficient Of Variationmentioning

confidence: 99%

“…Previous literature has well documented that the air-HSR substitutability varies largely upon route distance (Wan et al, 2016;Wang et al, 2018). Following Wang et al (2018), we group the routes into two categories: shorter than 850 km and longer than 850 km. To get a preliminary picture of the change in price dispersion after the HSR entry, a two-way ANOVA was conducted on a sample of 24,534 observations to examine the effects of route distance and HSR entry on the coefficient of variation.…”

Section: Coefficient Of Variationmentioning

confidence: 99%

“…A good survey of such studies can be found in . A large volume of literature reports that HSR has exerted downward pressure on airfares, flight frequencies, and air traffic (e.g., Wardman et al, 2002;Campos and de Rus, 2009;Albalate and Bel, 2012;Givoni and Dobruszkes, 2013;Dobruszkes et al, 2014;Albalate et al, 2015;Wan et al, 2016;Chen, 2017;Wang et al, 2018;. However, studies on the impact of China's HSR on airline pricing are relatively under-researched.…”

Section: Introductionmentioning

confidence: 99%

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Understanding airline price dispersion in the presence of high-speed rail

Wang

Yang

et al. 2020

Transport Policy

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This paper examines the price dispersion among China's "Big Three", namely, Air China, China Eastern and China Southern in the presence of high-speed rail (HSR). It has been found that HSR is positively and significantly associated with airline price dispersion on the longhaul routes, which may suggest that the presence of HSR can facilitate airline cooperation in setting prices and outputs, thereby leading to greater price dispersion. However, on the shorthaul routes where HSR is highly substitutable, the HSR competition effect dominates, and smaller price dispersion is observed. All the market structure and competition variables included in this study support the conclusion that price dispersion is greater in more concentrated and more densely travelled markets. The contribution of airline cost to price dispersion is limited.

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Section: Econometric Modelmentioning

confidence: 99%

Section: Coefficient Of Variationmentioning

confidence: 99%

Section: Coefficient Of Variationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Understanding airline price dispersion in the presence of high-speed rail

Wang

Yang

et al. 2020

Transport Policy

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“…High-speed rail (HSR) is different from conventional rail because of its high speed, comfortable ride and higher fare, which raise the need to differentiate them in mode choice modeling [30]. The development of HSR also influences the complementary and competitive relationship among intercity modes [31,32]. However, although a few exceptions can be quoted [33,34], previous studies of intercity mode choice have usually mixed these two modes up as one mode [17,[35][36][37][38][39][40][41][42][43][44][45].…”

Section: Literature Reviewmentioning

confidence: 99%

The Implication of Road Toll Discount for Mode Choice: Intercity Travel during the Chinese Spring Festival Holiday

et al. 2018

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Intercity travel congestion during the main national holidays takes place every year at different places around the world. Charge reduction measurements on existing toll roads have been implemented to promote an efficient use of the expressways and to reduce congestion on the public transit networks. However, some of these policies have had negative effects. A more comprehensive understanding of the determinants of holiday intercity travel patterns is critical for better policymaking. This paper aims to investigate the effectiveness of the road toll discount policy on mode choice behavior for intercity travel. A mixed logit model is developed to model the mode choices of intercity travelers, which is estimated based on survey data about intercity journeys from Beijing during the 2017 Chinese Spring Festival holiday. The policy impact is further discussed by elasticity and scenario simulations. The results indicate that the expressway toll discount does increase the car use and decrease the public transit usage. Given the decreased toll on expressways, the demand tends to shift from car to public transit, in an order of coach, high-speed rail, conventional rail, and airplane. When it comes to its effect on socio-demographic groups, men and lower-income travelers are identified to be more likely to change mode in response to variation of road toll. Finally, policy effectiveness is found to vary for travelers in different travel distance groups. Conclusions provide useful insights on road pricing management.

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Studies of the effectiveness of transport sector interventions in low‐ and middle‐income countries: An evidence and gap map

Malhotra

White

Cruz³

et al. 2021

Campbell Systematic Reviews

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Background There are great disparities in the quantity and quality of infrastructure. European countries such as Denmark, Germany, Switzerland, and the UK have close to 200 km of road per 100 km2, and the Netherlands over 300 km per 100 km2. By contrast, Kenya and Indonesia have <30, Laos and Morocco <20, Tanzania and Bolivia <10, and Mauritania only 1 km per 100 km2. As these figures show, there is a significant backlog of transport infrastructure investment in both rural and urban areas, especially in sub‐Saharan Africa. This situation is often exacerbated by weak governance and an inadequate regulatory framework with poor enforcement which lead to high costs and defective construction. The wellbeing of many poor people is constrained by lack of transport, which is called “transport poverty”. Lucas et al. suggest that up to 90% of the world's population are transport poor when defined as meeting at least one of the following criteria: (1) lack of available suitable transport, (2) lack of transport to necessary destinations, (3) cost of necessary transport puts household below the income poverty line, (4) excessive travel time, or (5) unsafe or unhealthy travel conditions. Objectives The aim of this evidence and gap map (EGM) is to identify, map, and describe existing evidence from studies reporting the quantitative effects of transport sector interventions related to all means of transport (roads, rail, trams and monorail, ports, shipping, and inland waterways, and air transport). Methods The intervention framework of this EGM reframes Berg et al's three categories (infrastructure, prices, and regulations) broadly as infrastructure, incentives, and institutions as subcategories for each intervention category which are each mode of transport (road, rail trams and monorail, ports, shipping, and inlands waterways, and air transport). This EGM identifies the area where intervention studies have been conducted as well as the current gaps in the evidence base. This EGM includes ongoing and completed impact evaluations and systematic reviews (SRs) of the effectiveness of transport sector interventions. This is a map of effectiveness studies (impact evaluations). The impact evaluations include experimental designs, nonexperimental designs, and regression designs. We have not included the before versus after studies and qualitative studies in this map. The search strategies included both academic and grey literature search on organisational websites, bibliographic searches and hand search of journals. An EGM is a table or matrix which provides a visual presentation of the evidence in a particular sector or a subsector. The map is presented as a matrix in which rows are intervention categories (e.g., roads) and subcategories (e.g., infrastructure) and the column outcome domains (e.g., environment) and subcategories as (e.g., air quality). Each cell contains studies of the corresponding intervention for the relevant outcome, with links to the available studies. Included studies were coded according to the interve...

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Effects of train speed on airline demand and price: Theory and empirical evidence from a natural experiment

Cited by 81 publications

References 48 publications

Understanding airline price dispersion in the presence of high-speed rail

Understanding airline price dispersion in the presence of high-speed rail

The Implication of Road Toll Discount for Mode Choice: Intercity Travel during the Chinese Spring Festival Holiday

Studies of the effectiveness of transport sector interventions in low‐ and middle‐income countries: An evidence and gap map

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