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Designing computable general equilibrium models for transportation applications

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  • Hamed Shahrokhi Shahraki
  • Chris Bachmann

Abstract

This paper presents a review of Computable General Equilibrium (CGE) model applications for spatial economic and transport interaction modelling. This paper has three objectives (1) To deliver an up to date and comprehensive literature review on applications of CGE models in transportation, (2) To analyze the different methodological approaches and their theoretical and practical advantages and disadvantages, and (3) To ultimately provide guidance on designing CGE models for various transportation analyses. The content of the paper is as follows: first, a brief introduction to CGE models is provided. The history of CGE models is traced, ranging from their origins and seminal applications in economics, to their eventual adoption in transportation research. This is followed by a comprehensive review of the application of CGE models to transport projects and policies. Various applications in transportation are reviewed in terms of their intended application, as well as their treatment of space and time. Finally, these applications are contrasted with respect to their methodological approaches, with a close examination of various influential model choices. Here, the essential design choices made within these model applications are explained and debated, to clearly elaborate on the workings of the models and the design choices facing CGE model developers.

Suggested Citation

  • Hamed Shahrokhi Shahraki & Chris Bachmann, 2018. "Designing computable general equilibrium models for transportation applications," Transport Reviews, Taylor & Francis Journals, vol. 38(6), pages 737-764, November.
  • Handle: RePEc:taf:transr:v:38:y:2018:i:6:p:737-764
    DOI: 10.1080/01441647.2018.1426651
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    Cited by:

    1. Luyuan Xu & Wei Wang, 2021. "A Quantitative Relationship Analysis of Industry Shifts and Trade Restructuring in ASEAN Based on Multiregional Computable General Equilibrium Models," Complexity, Hindawi, vol. 2021, pages 1-12, February.
    2. Ioannis Charalampidis & Panagiotis Karkatsoulis & Pantelis Capros, 2019. "A Regional Economy-Energy-Transport Model of the EU for Assessing Decarbonization in Transport," Energies, MDPI, vol. 12(16), pages 1-27, August.
    3. Tobias Mueller & Steven Gronau, 2023. "Fostering Macroeconomic Research on Hydrogen-Powered Aviation: A Systematic Literature Review on General Equilibrium Models," Energies, MDPI, vol. 16(3), pages 1-33, February.
    4. Betarelli, Admir Antonio & Domingues, Edson Paulo & Hewings, Geoffrey John Dennis, 2020. "Transport policy, rail freight sector and market structure: The economic effects in Brazil," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 1-23.
    5. Zhang, Qiang & Tong, Qiong, 2021. "The economic impacts of traffic consumption during the COVID-19 pandemic in China: A CGE analysis," Transport Policy, Elsevier, vol. 114(C), pages 330-337.
    6. Alabi, Oluwafisayo & Turner, Karen & Katris, Antonios & Calvillo, Christian, 2022. "Can network spending to support the shift to electric vehicles deliver wider economy gains? The role of domestic supply chain, price, and real wage effects," Energy Economics, Elsevier, vol. 110(C).
    7. Siroos Shahriari & Edward N. Robson & Jason Wang & Vinayak V. Dixit & S. Travis Waller & Taha H. Rashidi, 2023. "Integrating a computable general equilibrium model with the four-step framework," Transportation, Springer, vol. 50(4), pages 1213-1260, August.
    8. Proque, Andressa Lemes & Betarelli Junior, Admir Antonio & Perobelli, Fernando Salgueiro, 2022. "Fuel tax, cross subsidy and transport: Assessing the effects on income and consumption distribution in Brazil," Research in Transportation Economics, Elsevier, vol. 95(C).
    9. 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).
    10. Bartlomiej Rokicki & Eduardo A. Haddad & Jonathan M. Horridge & Marcin Stępniak, 2021. "Accessibility in the regional CGE framework: the effects of major transport infrastructure investments in Poland," Transportation, Springer, vol. 48(2), pages 747-772, April.

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