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Integrating a Computable General Equilibrium model with empirically calibrated transportation models for border crossing investment analysis

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  • Shahrokhi Shahraki, Hamed
  • Bachmann, Chris

Abstract

Computable General Equilibrium (CGE) models have been used extensively for assessing the economic impacts of transportation policies and projects. Most freight-related applications use stylistic representations of trade flows, commodity flows, and vehicles flows. This study proposes a framework that migrates from a stylistic CGE modelling approach by explicitly linking empirically calibrated transportation models of border crossing activities to a CGE model of the global economy. The framework incorporates stochastic queuing and mode choice modelling to comprehensively measure the impacts of border crossing investments. Border crossing scenarios include a 35% reduction in delay; a 4-min reduction in delay; and a reduction in delay resulting from the addition of one extra lane of capacity to each Canadian border crossing. Results suggest that the effects of border crossing investments and priorities are highly sensitive to delay modelling and mode splits, and less sensitive to mode shifts that result from investments. The proposed approach suggests Ambassador Bridge, Sarnia, and Fort Erie are the three most important border crossings for Canada's export competitiveness. A comparative analysis reveals that disregarding the real-world characteristics of the transportation system can result in large errors in the estimated impacts of border crossing investments on Canada's exports.

Suggested Citation

  • Shahrokhi Shahraki, Hamed & Bachmann, Chris, 2019. "Integrating a Computable General Equilibrium model with empirically calibrated transportation models for border crossing investment analysis," Research in Transportation Economics, Elsevier, vol. 78(C).
  • Handle: RePEc:eee:retrec:v:78:y:2019:i:c:s0739885919302793
    DOI: 10.1016/j.retrec.2019.100767
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    References listed on IDEAS

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    1. Dirk Willenbockel, 2014. "A General Equilibrium Analysis of the COMESA-EAC-SADC Tripartite FTA," EcoMod2014 7232, EcoMod.
    2. Avetisyan, Misak & Heatwole, Nathaniel & Rose, Adam & Roberts, Bryan, 2015. "Competitiveness and macroeconomic impacts of reduced wait times at U.S. land freight border crossings," Transportation Research Part A: Policy and Practice, Elsevier, vol. 78(C), pages 84-101.
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    Citations

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    Cited by:

    1. Ulengin, Fusun & Cekyay, Bora & Isik, Mine & Ozaydin, Ozay & Kabak, Özgür & Toktaş-Palut, Peral & Ekici, Sule Onsel & Topcu, Y. Ilker, 2021. "A simulation-based approach for improving the largest border crossing between Europe and Turkey," Transport Policy, Elsevier, vol. 114(C), pages 350-363.
    2. Deriu, S. & Cassar, I.P. & Pretaroli, R. & Socci, C., 2022. "The economic impact of Covid-19 pandemic in Sardinia," Research in Transportation Economics, Elsevier, vol. 93(C).
    3. Cui, Qiang & Li, Xin-yi, 2021. "Investigating the Profit Pollution Abatement Costs difference before and after the “Carbon neutral growth from 2020” strategy was proposed," Research in Transportation Economics, Elsevier, vol. 90(C).
    4. Zhang, Jinbo & Liu, Lirong & Xie, Yulei & Han, Dengcheng & Zhang, Yang & Li, Zheng & Guo, Huaicheng, 2023. "Revealing the impact of an energy–water–carbon nexus–based joint tax management policy on the environ-economic system," Applied Energy, Elsevier, vol. 331(C).

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    More about this item

    Keywords

    Transport policy; Infrastructure investment optimization; Economic impact analysis; Transport economics; Border crossing; Computable general equilibrium;
    All these keywords.

    JEL classification:

    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy

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