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Using spatial equilibrium models to analyze transportation rates: an application to steam coal in the United States

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  • Dennis, Scott M.

Abstract

This paper uses the implications of Samuelson's spatial equilibrium model to analyze transportation rates for steam coal delivered to electric utilities in the United States. The analysis indicates that transportation rates declined in every year but two since railroads were substantially deregulated in 1980. While some utilities may have experienced some rate increases, coal-fired electric utilities as a whole have clearly benefited from lower transportation rates, and economic welfare has increased. The methodology in this study may be used in other instances where reliable data on transportation rates are not available, but data on delivered prices are available.

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  • Dennis, Scott M., 1999. "Using spatial equilibrium models to analyze transportation rates: an application to steam coal in the United States," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 35(3), pages 145-154, September.
    • Handle: RePEc:eee:transe:v:35:y:1999:i:3:p:145-154
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    Cited by:

    1. Langyintuo, Augustine S., 2010. "Grain Distribution in Ghana under Imperfectly Competitive Market Conditions," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96166, African Association of Agricultural Economists (AAAE).
    2. Holler Branco, José Eduardo & Bartholomeu, Daniela Bacchi & Alves Junior, Paulo Nocera & Caixeta Filho, José Vicente, 2022. "Evaluation of the economic and environmental impacts from the addition of new railways to the brazilian's transportation network: An application of a network equilibrium model," Transport Policy, Elsevier, vol. 124(C), pages 61-69.
    3. Bruce Blonigen & Anca Cristea, 2013. "The Effects of the Interstate Commerce Act on Transport Costs: Evidence from Wheat Prices," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 43(1), pages 41-62, August.

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