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Representing travel cost variation in large-scale models of long-distance passenger transport

Author

Listed:
  • Kristoffersson, Ida

    (Research Programme in Transport Economics)

  • Daly, Andrew

    (University of Leeds)

  • Algers, Staffan

    (TPMod)

  • Svalgård-Jarcem, Stehn

    (WSP Advisory)

Abstract

In this paper we show that travel cost variation for long-distance travel is often substantial, even within a given mode, and we discuss why it is likely to increase further in the future. Thus, the current praxis in large-scale models to set one single travel cost for a combination of origin, destination, mode, and purpose, has potential for improvement. To tackle this issue, we develop ways of accounting for cost variation in model estimation and forecasting. For public transport, two methods are developed, where the first method focuses on improving the average fare, whereas the second method incorporates a submodel for choice of fare alternative within a demand model structure. Only the second method is consistent with random utility theory. For car, cost variation is related to long run decisions such as car type choice and employment location. Handling car cost variation therefore implies considering car type choice and workplace choice rather than different options related to a specific trip. These long-term choices can be considered using a car fleet model.

Suggested Citation

  • Kristoffersson, Ida & Daly, Andrew & Algers, Staffan & Svalgård-Jarcem, Stehn, 2020. "Representing travel cost variation in large-scale models of long-distance passenger transport," Papers 2020:6, Research Programme in Transport Economics.
  • Handle: RePEc:hhs:trnspr:2020_006
    as

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    File URL: https://www.transportportal.se/transportekonomi-org/WP-2020-6.pdf
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    References listed on IDEAS

    as
    1. Beser Hugosson, Muriel & Algers, Staffan & Habibi, Shiva & Sundbergh, Pia, 2016. "Evaluation of the Swedish car fleet model using recent applications," Transport Policy, Elsevier, vol. 49(C), pages 30-40.
    2. Berglund, Svante & Kristoffersson, Ida, 2020. "Anslutningsresor : en deskriptiv analys," Papers 2020:3, Research Programme in Transport Economics.
    3. Vigren, Andreas, 2017. "Competition in Swedish passenger railway: Entry in an open access market and its effect on prices," Economics of Transportation, Elsevier, vol. 11, pages 49-59.
    4. Anders F. Jensen & Elisabetta Cherchi & Stefan L. Mabit & Juan de Dios Ortúzar, 2017. "Predicting the Potential Market for Electric Vehicles," Transportation Science, INFORMS, vol. 51(2), pages 427-440, May.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Andersson, Angelica & Engelson, Leonid & Börjesson, Maria & Daly, Andrew & Kristoffersson, Ida, 2021. "Long-distance mode choice model estimation using mobile phone network data," Papers 2021:1, Research Programme in Transport Economics.

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    More about this item

    Keywords

    Long-distance travel; Travel cost; Travel fare; Large-scale model; Demand model;
    All these keywords.

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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