A Cross Sectional Study of Freight Transport Demand and Rail-Truck Competition in Canada
This article derives a rail-truck freight demand model that is consistent with the economic theory of modal choice in the price-speed-reliability space. The translog model is estimated from the cross sectional data of Canadian interregional freight flows for the eight selected commodities. Major empirical findings are: (i) The quality attributes of service significantly influence modal choice only for the relatively high-value commodities. (ii) Both the price and quality elasticities of demand and the elasticity of rail-truck substitution vary substantially from route to route as well as from commodity to commodity. This implies that CES models including Cobb-Douglas form should not be used for freight demand studies. (iii) For the relatively high-value commodities, short-haul traffic is largely dominated by the truck mode, and significant rail-truck competition exists only in the medium and long-haul markets. (iv) For the relatively low-value commodities, effective rail-truck competition exists only in the short-haul markets. Hence, the medium and long-haul markets are largely rail-dominated.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 10 (1979)
Issue (Month): 2 (Autumn)
|Contact details of provider:|| Web page: http://www.rje.org|
|Order Information:||Web: https://editorialexpress.com/cgi-bin/rje_online.cgi|
When requesting a correction, please mention this item's handle: RePEc:rje:bellje:v:10:y:1979:i:autumn:p:463-482. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.