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UK Freight Demand: Elasticities and Decoupling

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  • Paolo Agnolucci
  • David Bonilla
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    Abstract

    The aim of this study is to estimate road freight demand in the UK for the period 1956-2003 and to assess the occurrence of decoupling between economic activity and freight demand as discussed in McKinnon (2006). As models with a deterministic trend cannot accommodate a long-run relationship between the variables in the freight demand, one needs to model a relationship between growth rates rather than between the levels of the variables. Models with a stochastic trend gave better results and confirmed that the pace decoupling during the last years of the sample period increased. Price and income elasticities were estimated to be about 18 per cent and 65 per cent, respectively. ? 2009 LSE and the University of Bath

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    Bibliographic Info

    Article provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy (JTEP).

    Volume (Year): 43 (2009)
    Issue (Month): 3 (September)
    Pages: 317-344

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    Handle: RePEc:tpe:jtecpo:v:43:y:2009:i:3:p:317-344

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    Web page: http://www.bath.ac.uk/e-journals/jtep

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    Cited by:
    1. Vierth , Inge, 2013. "Why do CO2 emissions from heavy road freight transports increase in spite of higher fuel prices?," Working papers in Transport Economics 2013:4, CTS - Centre for Transport Studies Stockholm (KTH and VTI).

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