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Air transport and high-speed rail competition: Environmental implications and mitigation strategies

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  • D’Alfonso, Tiziana
  • Jiang, Changmin
  • Bracaglia, Valentina

Abstract

We build a duopoly model to shed light on the environmental impact of HSR-air transport competition, capturing the effects of induced demand, schedule frequency and HSR speed. The net environmental effect can be negative since there is a the trade-off between the substitution effect – how many passengers using the HSR are shifted from air transport – and the traffic generation effect – how much new demand is generated by the HSR. We conduct a simulation study based on the London-Paris market where HSR has served 70% of the market. The introduction of HSR is detrimental to LAP, while it is beneficial to GHG emissions. HSR entry increases neither LAP nor GHG emissions when the ratio between HSR and air transport emissions is relatively low. Moreover, competition is more likely to be detrimental to the environment when the weight of the social welfare in HSR objective function is high. Since the magnitude of the environmental friendliness of HSR compared to air transport hinges on the mix of energy sources used to generate the electricity (which is heavily constrained by the country in which HSR operates), regulators should assess the implications of HSR entry taking into account the energy policy and mitigation strategies available to transport modes.

Suggested Citation

  • D’Alfonso, Tiziana & Jiang, Changmin & Bracaglia, Valentina, 2016. "Air transport and high-speed rail competition: Environmental implications and mitigation strategies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 261-276.
  • Handle: RePEc:eee:transa:v:92:y:2016:i:c:p:261-276
    DOI: 10.1016/j.tra.2016.06.009
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    Cited by:

    1. Maertens, Sven, 2018. "A metric to assess the competitive position of airlines and airline groups in the intra-European air transport market," Research in Transportation Economics, Elsevier, vol. 72(C), pages 65-73.
    2. Avenali, Alessandro & Bracaglia, Valentina & D'Alfonso, Tiziana & Reverberi, Pierfrancesco, 2018. "Strategic formation and welfare effects of airline-high speed rail agreements," Transportation Research Part B: Methodological, Elsevier, vol. 117(PA), pages 393-411.
    3. Cartenì, Armando & Pariota, Luigi & Henke, Ilaria, 2017. "Hedonic value of high-speed rail services: Quantitative analysis of the students’ domestic tourist attractiveness of the main Italian cities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 100(C), pages 348-365.
    4. Xia, Wenyi & Jiang, Changmin & Wang, Kun & Zhang, Anming, 2019. "Air-rail revenue sharing in a multi-airport system: Effects on traffic and social welfare," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 304-319.
    5. Wang, Kun & Xia, Wenyi & Zhang, Anming & Zhang, Qiong, 2018. "Effects of train speed on airline demand and price: Theory and empirical evidence from a natural experiment," Transportation Research Part B: Methodological, Elsevier, vol. 114(C), pages 99-130.
    6. Wan, Yulai & Ha, Hun-Koo & Yoshida, Yuichiro & Zhang, Anming, 2016. "Airlines’ reaction to high-speed rail entries: Empirical study of the Northeast Asian market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 532-557.
    7. Jiang, Changmin & D'Alfonso, Tiziana & Wan, Yulai, 2017. "Air-rail cooperation: Partnership level, market structure and welfare implications," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 461-482.
    8. Hu, Rong & Xiao, Yi-bin & Jiang, Changmin, 2018. "Jet fuel hedging, operational fuel efficiency improvement and carbon tax," Transportation Research Part B: Methodological, Elsevier, vol. 116(C), pages 103-123.
    9. Zhang, Anming & Wan, Yulai & Yang, Hangjun, 2019. "Impacts of high-speed rail on airlines, airports and regional economies: A survey of recent research," Transport Policy, Elsevier, vol. 81(C), pages 1-19.
    10. Sheng, Dian & Li, Zhi-Chun & Fu, Xiaowen, 2019. "Modeling the effects of airline slot hoarding behavior under the grandfather rights with use-it-or-lose-it rule," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 48-61.
    11. Li, Xue-yan & Li, Xue-mei & Li, Xue-wei & Qiu, He-ting, 2017. "Multi-agent fare optimization model of two modes problem and its analysis based on edge of chaos," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 469(C), pages 405-419.

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