Transportation policy for high-speed rail competing with airlines

Tsunoda, Yushi

doi:10.1016/j.tra.2018.06.030

Cited by 17 publications

(9 citation statements)

References 22 publications

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“…China and Spain accounted for 27% and 13% of the published articles, respectively. Several authors included multiple countries in their analysis [12,41,44,47,63,73,76,101]. In those cases, the articles were mapped to multiple regions.…”

Section: Location Distributionmentioning

confidence: 99%

Literature Review of Socioeconomic and Environmental Impacts of High-Speed Rail in the World

et al. 2021

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Countries considering high-speed rail (HSR) developments face enormous challenges because of their high deployment cost, environmental obstacles, political opposition, and their potentially adverse effects on society. Nevertheless, HSR services are importantly sustainable that can have positive and transformative effects on the economic growth of a nation. This paper systematically reviews and classifies impact areas of HSR deployments around the world as well as the analytical methods used to evaluate those impacts. We have utilized the scholarly scientific database to find articles in HSR systems. By defining some rules, we select 116 articles between 1997 and March 2020. The approach revealed interesting patterns and trends in space, time, and sentiment of the analyzed impacts on society, the economy, and the environment. The findings can inform decision-making about HSR developments and deployments, and the gaps identified in the literature can propose new research opportunities for future studies.

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Section: Location Distributionmentioning

confidence: 99%

Literature Review of Socioeconomic and Environmental Impacts of High-Speed Rail in the World

et al. 2021

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“…Yonghwa and Hun (2006) [22] The rapid development of HSR had prominent impacts on civil aviation. HSR has had a significant impact on airfares, profits, and social welfare in both the long and short term [6][7][8][9]. For example, after the opening of the Beijing-Shanghai HSR, the civil aviation passenger load factor reduced by 4%, and the ticket price dropped by 15-20%.…”

Section: Hsr and Air Transportmentioning

confidence: 99%

The Influence of the Air Cargo Network on the Regional Economy under the Impact of High-Speed Rail in China

Hao

Zhang

et al. 2020

Sustainability

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There is little research on the impact of air cargo networks on regional economic development, which is especially notable considering that Chinese airlines gradually adjusted their networks after the introduction of high-speed rail (HSR). This empirical study aims to fill this research gap. Firstly, we used the Ordinary Least Squares (OLS) method to study the effect of the air cargo network on the regional economy. The results show that, in eastern and central China, the higher the clustering coefficient of the domestic air cargo network, the more significant their promotion effect becomes on the GDP per capita, with cities in eastern China benefitting the most from this effect. However, for super-scale cities, the clustering coefficient of the domestic air cargo network has a significant negative effect on the GDP per capita, which is likely because both the air and HSR passenger services crowd out the development opportunities for air cargo. Secondly, we applied the Difference-in-Difference (DID) method in order to measure the impact on the regional economy caused by air cargo under the impact of HSR. The results show that the aviation network adjusted for the impact of HSR produces heterogeneous effects on cities for different regions and scales, and that the international aviation network has greater impacts on cities than the domestic network. In eastern China, HSR and air cargo (both international and domestic networks) promote economic growth simultaneously; in central China, only domestic air cargo has a positive effect on the regional economy; in western China, neither HSR nor air cargo has an obvious effect on the regional economy. Policy implications—such as encouraging the cooperation of HSR and civil aviation—are discussed, and could help bring the functions of the air cargo network in regional economic development into full play.

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“…A further comparison of the social welfare with and without price discrimination in the airline industry showed that implementing a low-cost strategy in airlines can benefit the social welfare of FSR. Tsunoda (2018) built on the research of Yang and Zhang (2012) and proposed a two-stage model, where the welfare-maximizing government determines the optimal weight on the welfare relative to the FSR's profit (referred to as the degree of regulation in their study) for the FSR operator in the first stage, while the FSA and FSR operators determine their fares in the second stage. They found that the passenger benefits play a crucial role.…”

Section: Social Welfare and Competitionmentioning

confidence: 99%

Effects of introducing low-cost high-speed rail on air-rail competition: Modelling and numerical analysis for Paris-Marseille

et al. 2020

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Given the trend of railway liberalization in Europe and Asia, we explore the effects of introducing low-cost highspeed rail as an answer to the railway reform on air-rail competition. In particular, by proposing a vertically differentiated model, we first derive the optimal pricing policies as well as the corresponding profits and market shares for low-cost high-speed rail (LCR), full-service high-speed rail (FSR) and air transport (Air). We do so for two types of LCR entrants, namely the incumbent owned entrant (to the FSR company) and the independently owned entrants. For both situations, we prove analytically that introducing LCR leads to reduced FSR and Air fares as well as to reduced Air traffic. The fare and traffic reductions increase with the passenger's time value and with the LCR travel time, while they decrease with the Air unit seat cost. Moreover, all LCR effects are stronger for an independently operated LCR. We apply our model to the Paris-Marseille route, based on data collected from publicly available sources. It is found that introducing an independently owned (incumbent owned) LCR on this route leads to 39% (33%) less air traffic, 20% (14%) less FSR traffic and a 37% (29%) increase in total rail traffic. Furthermore, this comes with increases of 2% (8%) in combined railway profit and 6% (5%) in total social welfare. These results support the decision of French policy makers to have LCR and FSR operated by the same company, as it comes with much higher combined railway profits and almost the same welfare increase as independently owned LCR. Further sensitivity analyses suggest that most LCR passengers would otherwise have traveled by FSR or Air, although LCR also attracts new passengers. In addition, offering a low-cost alternative is more effective if passengers value time more highly. Implications in terms of methodology and industry are provided.

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Transportation policy for high-speed rail competing with airlines

Cited by 17 publications

References 22 publications

Literature Review of Socioeconomic and Environmental Impacts of High-Speed Rail in the World

Literature Review of Socioeconomic and Environmental Impacts of High-Speed Rail in the World

The Influence of the Air Cargo Network on the Regional Economy under the Impact of High-Speed Rail in China

Effects of introducing low-cost high-speed rail on air-rail competition: Modelling and numerical analysis for Paris-Marseille

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