IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v13y2025i3p65-d1603336.html

Assessment of Socio-Economic Impacts of Hyperloop Technology on European Trade Routes

Author

Listed:
  • Aleksejs Vesjolijs

    (Transport and Telecommunication Institute, Accenture, 1 Grand Canal Square, D02 P820 Dublin, Ireland)

  • Yulia Stukalina

    (Transport and Telecommunication Institute, Accenture, 1 Grand Canal Square, D02 P820 Dublin, Ireland)

  • Olga Zervina

    (Transport and Telecommunication Institute, 2 Lauvas street, LV-1019 Riga, Latvia)

Abstract

This study investigates the possible socio-economic impacts of Hyperloop technology on establishing and reshaping EU trade routes. Hyperloop—a novel ultra-high-speed transportation system—demonstrates the capability to achieve supersonic speeds to move cargo and passengers. Delivering goods in a faster and sustainable way could change the existing trade routes and offer new opportunities for the development of international trade. This research focuses on assessing how Hyperloop may influence existing EU trade routes by improving delivery times and reducing energy usage/carbon emissions (these terms will be used interchangeably throughout the paper where both reducing long-terms costs and meeting climate goals are equally impacted by this technology). Further objectives include evaluating potential new trade routes that could emerge due to Hyperloop’s capabilities. In this paper, twelve different scenarios are constructed and compared; these scenarios contain the description of current EU trade routes that could be influenced by Hyperloop and those that could be introduced given the improved delivery times and sustainable business opportunities. The gravity model is proposed and an equation is estimated using the PPML (Poisson Pseudo Maximum Likelihood) method based on Eurostat and IMF open data. Based on the research results, different socio-economic outcomes for different layers of EU trade, including negative and positive impacts, are identified. The findings suggest that deploying Hyperloop technology would result in a 15% increase in exports and a 10% increase in imports for European trade. Both positive and negative socio-economic impacts are identified, highlighting the complexities of adopting such a disruptive technology. The research results could be used in the process of decision-making for estimating risks and performing economic analysis on various aspects of the EU trade policy. The study results could also guide EU decision-makers in assessing the main impacts of Hyperloop technology on the transportation industry, on the environment, and on society, in the context of further developing EU trade routes.

Suggested Citation

  • Aleksejs Vesjolijs & Yulia Stukalina & Olga Zervina, 2025. "Assessment of Socio-Economic Impacts of Hyperloop Technology on European Trade Routes," Economies, MDPI, vol. 13(3), pages 1-21, March.
    • Handle: RePEc:gam:jecomi:v:13:y:2025:i:3:p:65-:d:1603336
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/13/3/65/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/13/3/65/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Latifi, Albina & Naboka-Krell, Viktoriia & Tillmann, Peter & Winker, Peter, 2024. "Fiscal policy in the Bundestag: Textual analysis and macroeconomic effects," European Economic Review, Elsevier, vol. 168(C).
    2. Frensch, Richard & Fidrmuc, Jarko & Rindler, Michael, 2023. "Topography, borders, and trade across Europe," Journal of Comparative Economics, Elsevier, vol. 51(3), pages 816-832.
    3. Yang, Yichen & Liu, Wen, 2024. "Free trade agreements and domestic value added in exports: An analysis from the network perspective," Economic Modelling, Elsevier, vol. 132(C).
    4. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    5. Max Werner & Klaus Eißing & Sebastian Langton, 2016. "Shared Value Potential of Transporting Cargo via Hyperloop," Working Paper 166/2016, Helmut Schmidt University, Hamburg.
    6. Tan, Zhijia & Shao, Shuai & Zhang, Di & Shang, Wen-Long & Ochieng, Washington & Han, Yi, 2024. "Decarbonizing the inland container fleet with carbon cap-and-trade scheme," Applied Energy, Elsevier, vol. 376(PB).
    7. Aizenman, Joshua & Lindahl, Robert & Stenvall, David & Uddin, Gazi Salah, 2024. "Geopolitical shocks and commodity market dynamics: New evidence from the Russia-Ukraine conflict," European Journal of Political Economy, Elsevier, vol. 85(C).
    8. Yu, Yu & Ma, Daipeng & Zhu, Weiwei, 2023. "Resilience assessment of international cobalt trade network," Resources Policy, Elsevier, vol. 83(C).
    9. Hayo, Bernd & Roth, Duncan H.W., 2024. "The perceived impact of immigration on native workers’ labour market outcomes," European Journal of Political Economy, Elsevier, vol. 85(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mastac Lavinia, 2025. "Digitalization And Informality In The Eu: A Pestle-Based Cluster Analysis," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 155-167, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rodolfo G. Campos & Benedikt Heid & Jacopo Timini, 2024. "The Economic Consequences of Geopolitical Fragmentation: Evidence from the Cold War," CESifo Working Paper Series 11057, CESifo.
    2. Bunte, Jonas B. & Kinne, Brandon J., 2025. "Strategic interdependence in sovereign lending," European Journal of Political Economy, Elsevier, vol. 89(C).
    3. Jong Woo Kang & Joshua Anthony O. Gapay, 2024. "Indirect channel of trade agreements in deepening global value chains," The World Economy, Wiley Blackwell, vol. 47(8), pages 3511-3550, August.
    4. Heiland, Inga & Šváb, Patrik, 2025. "Estimating gravity equations for trade in value added: A structural perspective," Economics Letters, Elsevier, vol. 254(C).
    5. Nicolas Péridy, 2005. "Towards a New Trade Policy Between the USA and Middle‐East Countries:Estimating Trade Resistance and Export Potential," The World Economy, Wiley Blackwell, vol. 28(4), pages 491-518, April.
    6. Lisandra Flach & Fabian Gräf, 2020. "The impact of trade agreements on world export prices," Review of International Economics, Wiley Blackwell, vol. 28(1), pages 168-208, February.
    7. Yann Duval & Chorthip Utoktham, 2011. "Trade Facilitation in Asia and the Pacific: Which Policies and Measures affect Trade Costs the Most?," Working Paper Series 111, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    8. Mariya Aleksynska & Giovanni Peri, 2014. "Isolating the Network Effect of Immigrants on Trade," The World Economy, Wiley Blackwell, vol. 37(3), pages 434-455, March.
    9. Jean Balié & Davide Del Prete & Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci, 2017. "Agriculture and Food Global Value Chains in Sub-Saharan Africa: Does bilateral trade policy impact on backward and forward participation?," Working Papers 4/17, Sapienza University of Rome, DISS.
    10. Sunder Ramaswamy & Abishek Choutagunta & Santhosh K. Sahu, 2016. "Evaluating Asian FTAs: What do Gravity Equation Models Tell Us?," Working Papers id:11377, eSocialSciences.
    11. Leibovici, Fernando & Waugh, Michael E., 2019. "International trade and intertemporal substitution," Journal of International Economics, Elsevier, vol. 117(C), pages 158-174.
    12. Mkandawire, Petros, 2023. "Do environmental provisions in preferential trade agreements affect climate protection performance?," 2023 Seventh AAAE/60th AEASA Conference, September 18-21, 2023, Durban, South Africa 365880, African Association of Agricultural Economists (AAAE).
    13. Bert Minne & Dinand Webbink, 2008. "Raising teacher supply: An assessment of three options for increasing wages," CPB Memorandum 194.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    14. Oh, Chang Hoon & Travis Selmier, W. & Lien, Donald, 2011. "International trade, foreign direct investment, and transaction costs in languages," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 732-735.
    15. repec:bjc:journl:v:12:y:2025:i:11:p:1677-1691 is not listed on IDEAS
    16. Amelie Guillin & Isabelle Rabaud & Chahir Zaki, 2023. "Does the depth of trade agreements matter for trade in services?," The World Economy, Wiley Blackwell, vol. 46(12), pages 3616-3653, December.
    17. Thomas L. Vollrath & Mark J. Gehlhar & Charles B. Hallahan, 2009. "Bilateral Import Protection, Free Trade Agreements, and Other Factors Influencing Trade Flows in Agriculture and Clothing," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 298-317, June.
    18. Edmond Noubissi & Boker Poumie & Hilaire Nkengfack, 2021. "Effect of environmental policies on exports from sub‐Saharan African countries," African Development Review, African Development Bank, vol. 33(4), pages 688-702, December.
    19. Joseph Francois & Julia Woerz, 0000. "Rags in the High Rent District: the Evolution of Quota Rents in Textiles and Clothing," Tinbergen Institute Discussion Papers 06-007/2, Tinbergen Institute.
    20. Beestermöller, Matthias, 2017. "Striking Evidence? Demand Persistence for Inter-City Buses from German Railway Strikes," Discussion Papers in Economics 31768, University of Munich, Department of Economics.
    21. Luis Marcelo Florensa & Laura M uez-Ramos & Inmaculada Mart󹑺-Zarzoso & Mar𨁌uisa Recalde, 2015. "Regional versus global production networks: where does Latin America stand?," Applied Economics, Taylor & Francis Journals, vol. 47(37), pages 3938-3956, August.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:13:y:2025:i:3:p:65-:d:1603336. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.