A New Spatial Equilibrium Model Including Passenger Transportation: An Accessibility Perspective

Abstract

This paper investigates a new way to identify how comprehensive transport network affects trade flow and economic cooperation between regions. Based on literature reviews on spatial equilibrium model, a new spatial equilibrium model including both passenger and freight transportation is developed. It is an improvement of the classic spatial equilibrium model, in which passenger transportation was not taken into account. A concept of passenger-support-measure is proposed to illustrate passenger transportation's significant impact upon trade flows among different regions. From accessibility perspective, travel time is a key factor for passenger transportation. A numerical example is used to validate the new model. The result shows that trade among different regions needs both inexpensive freight transportation and accessible passenger transportation.