Page 1

Contents7

Contents Introduction 5

Part I  Organization of the Transport Sector 1 The Traffic and Transport System 1 Preliminaries

21

2  The traffic and transportation system 2.1  The difference between traffic and transportation 2.2  Transportation subsystems 2.2.1  Classification by type of load 2.2.2  Classification by mode 2.2.3  Scheduled and non-scheduled transportation 2.2.4  Own-account transportation versus professional transportation 2.3  Measuring traffic and transportation performance 2.3.1  Traffic performance versus transportation performance 2.3.2  Capacity Utilization Ratio

23 23 23 24 28 38 38 39 39 53

Bibliography 54

2 Regulation in the Transport Sector 1  Introductory remarks

59

2  Regulation of road haulage 2.1  Own-account transportation 2.2  Third-party haulage 2.2.1  Admission to the occupation 2.2.2  Access to the market 2.2.3  Social harmonization 2.2.4  Technical harmonization 2.2.5  Pricing 2.2.6  Tolls and user charges

60 60 60 60 62 66 69 70 71

3  Regulation in rail transport

75


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Transport Economics

4 Regulation of inland waterway transport 4.1 Own-account transportation 4.2 Third-party transport 4.2.1 International versus national transport 4.2.2 Technical requirements with which vessels must comply 4.2.3 Access to the occupation of carrier of goods by waterway 4.2.4 Conditions for obtaining boatmasters’ certificates 4.2.5 Social harmonization 4.2.6  European rationalization 4.2.7  The market mechanism and pricing 4.2.8  Aid Regulations

85 85 85 85 86 87 88 89 90 94 95

Footnotes 96 Bibliography 96

Part II  Economics of Transport Management 3 Logistical Costs 1 The concept of business logistics

113

2  Transportation costs

115

3  Handling costs

116

4  Inventory costs 4.1  Cycle stock 4.2  In-transit inventory 4.3  Safety stock 4.3.1 Calculating v 4.3.2 Setting K 4.4  Speculative stock 4.5  Seasonal stock 4.6  Dead stock

116 119 121 122 126 128 132 133 133

5  Stock-out costs

133

6  Packaging costs

135

7  Costs of order processing and administration

135

8  Start-up costs

136


Contents9

9  Costs of customer service

136

10 Location costs

137

11 Just-in-time supply and zero stocks 11.1 Just-in-time supply 11.2 Zero stock

137 138 139

Footnotes 141 Bibliography 141

4 Transport Decisions from a Logistical Perspective 1 Square root law

145

2 Optimal order size in inland waterways 2.1 Survey of the data 2.2 Simplified calculation of optimal order quantity 2.3 Exact calculation of optimal order quantity

149 150 151 154

3 Optimal order quantity in road transport 3.1 Survey of the data 3.2 Simplified calculation of optimal order quantity 3.3 Exact calculation of optimal order quantity

157 157 158 160

4 Choice of transport mode

161

5 Stock consolidation 5.1 Savings of safety stock 5.2 Savings of cycle stock 5.3 Savings of fixed costs per consignment 5.4 Limits of consolidation

165 165 167 168 168

Footnotes 169 Bibliography 169

5 Cost Calculation in a Transport Firm 1 Time costs and distance costs

173

2 Hour coefficient and kilometre coefficient 2.1 Cost coefficients in road transportation

176 177


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2.2 Cost coefficients for inland waterway transportation 2.3 Economies of scale

180 181

3 Variable costs

182

4  Common costs

183

5  Costs for peak and off-peak periods

186

Footnotes 187 Bibliography 187

6 Waiting Time in Transport Firms 1  The standard queueing model

191

2  The Pollaczek-Khintchine correction

194

3  Parallel service channels

196

4  Monte-Carlo simulation

198

5  Special Cases 5.1 Waiting time in scheduled transport services 5.2 Waiting for the tide

199 199 201

Footnotes 204 Bibliography 204

7 Routing 1 Shortest-path method

207

2 Vehicle routing problems

212

3 Assignment of origins to destination

219

4 Further applications

221

Footnotes 222 Bibliography 222


Contents11

8 Pricing in a Transportation Firm 1  Specific circumstances 1.1  Short-term or long-term decisions 1.2  Quantity adjustment or pricing by the operator 1.3  Equal or differentiated feasibility 1.4  Single or joint products 1.5  Dealing with capacity shortage

228 228 228 229 231 231

2 A simple case

231

3 Rate setting by the operator

238

4 Joint products

240

5 Further applications

245

Footnotes 246 Bibliography 246

9 Investing in Vehicles 1  Optimal size and composition of the vehicle fleet

251

2  Optimal replacement 2.1 Three approaches to optimal replacement 2.1.1 Optimal replacement age 2.1.2 The optimal repair limit 2.1.3 Optimal repair limits with maximum replacement age 2.2 Cost data 2.2.1 Purchase of new vehicles 2.2.2 Maintenance costs 2.2.3 Interest costs 2.2.4 Failure costs and quality deterioration 2.2.5 Taxes 2.3 Calculation without interest costs 2.4 Calculation with interest costs 2.5 Future prices 2.6 Replacement by a different type of vehicle 2.7 Replacement by a second-hand vehicle 2.8 Conclusions regarding the calculation of time and distance costs 2.9 Taxation

254 254 255 255 255 257 257 258 261 261 262 262 264 268 268 269 270 272

Footnotes 274 Bibliography 274


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Transport Economics

Part III  Transport Supply and Demand 10 Demand for Transport 1 Introduction

281

2 Aggregate models 2.1 The Methodological Framework 2.2 Trip generation 2.2.1 Trip generation in passenger transport 2.2.2 Trip generation in freight transport 2.3 Trip distribution 2.3.1 Distribution of passenger traffic 2.3.2 Distribution in freight transport 2.4 Modal split 2.4.1  The modal split in passenger traffic 2.4.2 The modal split in freight transport 2.5 Traffic conversion 2.6 Assignment to infrastructure

282 282 286 286 288 289 289 294 295 296 297 299 299

3 The microeconomic approach to transport-choice behaviour

301

4 The activity-based approach

304

5 An empirical application: freight transport in Europe 5.1 The framework 5.2 Economic activity and freight transport, measured empirically 5.3 Using the empirical findings

305 305 306 308

6 Some concluding remarks on demand analysis

309

Bibliography 310

11 Transport Supply 1 Introduction

317

2 Output, inputs, heterogeneity and calculation 2.1 The output unit in transport 2.2 Inputs in the production of transport 2.3 The heterogeneity of transportation supply 2.4 Cost allocation in joint production processes 2.4.1 Joint products 2.4.2 Allocation keys for joint costs 2.4.3 Fluctuations in transportation demand

318 318 319 320 323 323 323 324


Contents13

3 The use of cost functions 325 3.1 The cost concept and methods of cost analysis 325 3.2 Econometric cost functions 326 3.2.1 Linear or quadratic functions 326 3.2.2 A theoretically specified underlying production technology 327 3.2.3 The translog cost function 328 3.2.4 The hedonic transport cost function 329 3.2.5 Evolutions in the literature 329 3.3 Calculating the relevant indicators 331 3.3.1 Economies of scale 331 3.3.2 Economies of density 332 3.3.3 Economies of scope 332 3.4 Supply and policy: a public transport application 333 4 Empirical findings: building blocks for transport policy

337

Bibliography 343

12 Equilibrium and Market Structure 1 The vicious circle of public transport 1.1 Lagged response 1.2 Theory of the vicious circle 1.3 Application: frequency proportional to the number of passengers 1.4 Application: assignment with feedback 1.5 Partial analysis with transport price 1.6 A general analysis

349 349 350 353 355 356 357

2 Market structures in the transport sector 2.1 Modelling market structures 2.2 An application: liner shipping

358 358 364

Footnote 367 Bibliography 367

Part IV  Transport Policy 13 Transport Policy as Part of General Policy 1 Transport as the favoured tool 1.1 Objectives of regional development 1.2  Social objectives

376 379 382


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1.3 Employment objectives 1.4 One-sided planning

384 385

2 First best: exclusively direct measures

386

3 Second best: exceptional indirect measures

390

Footnote 392 Bibliography 392

14 Charging for External Costs 1 Justification of charges for external costs

395

2 Composition of the marginal external cost

399

3 Marginal congestion costs 3.1 Speed/flow relationships 3.2 Queueing analysis

402 402 405

4 Marginal infrastructure costs

417

5 Marginal environmental costs 5.1 Noise 5.2 Air pollution

419 420 423

6 Marginal accident costs

424

7 Second-best solutions 7.1 No congestion tax on road traffic 7.2 Budgetary constraints 7.3 Other second-best considerations

427 427 431 435

Footnotes 437 Bibliography 437


Contents15

15 Taxation Methods and Alternative Measures 1 Survey of taxation methods 1.1 Electronic toll collection 1.2 Local licences 1.3 Parking levies 1.4 Variabilization of automobile tax

441 442 444 445 445

2 Costs and benefits of a levy

446

3 Measures besides taxation 3.1 Quantity measures 3.2 Cost-reduction measures

451 451 453

4 The path of equilibrium

455

5 Second-best solutions

459

Footnotes 461 Bibliography 461

16 Pricing Policy 1 Short-term or long-term?

467

2 Capacity restrictions

468

3 Stochastic fluctuations in demand

469

4 Joint supply

470

5 Decreasing costs

470

6 Second-best solutions 6.1 Inadequate charging for external costs 6.2 Budget constraints 6.3 Distortions in prices of competing modes 6.4 Employment 6.5 Social grants or subsidies to sectors of industry

474 474 474 479 480 482

Footnotes 483 Bibliography 483


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Transport Economics

17 Infrastructure Policy 1 Direct costs and benefits 1.1 Benefits: area under the demand curve for products 1.1.1 A new toll road 1.1.2 Improving the quality of an existing toll road, at constant toll level 1.1.3 Improving the quality of an existing toll road and raising the toll 1.1.4 Increasing the capacity of an infrastructure 1.2 Costs: area under the supply curve of inputs

488 489 490

2 Indirect costs and benefits 2.1 Erroneous calculations 2.2 Congestion relief in road traffic as an indirect benefit 2.3 Employment as an indirect benefit

498 498 499 500

3 Measuring willingness to pay

503

4 Discounting 4.1 Interest rate on government bonds 4.2 Corporate rate of return 4.3 Social versus personal discount rate 4.4 Pigouvian discount rate 4.5 Conclusion

507 508 509 510 510 510

5 Project Selection 5.1 Misleading rules of thumb 5.1.1 Pay-back period 5.1.2 Internal rate of return 5.1.3 Benefit-to-cost ratio 5.2 Overview of correct criteria 5.2.1 Static criterion for independent projects 5.2.2 Static criterion for mutually exclusive projects 5.2.3 Static criterion for fully interdependent projects 5.2.4 Dynamic criterion

511 512 512 513 514 514 514 517 521 522

6 Multicriteria analysis

523

492 494 495 496

Footnotes 525 Bibliography 525

Index 

529

Transport economics inhoudsopgave  
Transport economics inhoudsopgave