Abstract

Congestion before the Three Gorges Dam has been an obstacle to the sustainable development of the Yangtze River. Water–land transshipment can be a better way to alleviate congestion. Consequently, the government started to offer subsidies to evacuate ships’ traffic flow through transshipment despite that it increases environmental pollution. In this paper, we analyze the effects of subsidies on carriers’ adoption behavioral strategies, congestion and transshipment on the environment, and subsidies on pricing considering environmental emissions. Two different models are constructed, and a simulation analysis is carried out with different scenarios by varying the values of different parameters. The results show that subsidies can affect carriers’ behavioral strategies. Both lockage and transshipment modes can increase environmental emissions. Pricing under the subsidy scenario can be more competitive with profit maximization. The results offer important implications to policymakers, carriers, shippers.

Highlights

  • Yangtze River, known as Golden Channel in China, plays an important role in inland waterway transportation and is characterized by its large channel capacity, low transportation cost, and environment-friendliness

  • The Three Gorges Dam (TGD), which is located in the upper stream of the Yangtze River, has brought many benefits such as power generation, flood prevention, and navigation capacity [2]

  • It has become a bottleneck due to the growing traffic volume of inland ships and insufficient navigation capacity of the lockage. This has hindered the sustainable development of inland waterway transportation on the Yangtze River

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Summary

Introduction

Yangtze River, known as Golden Channel in China, plays an important role in inland waterway transportation and is characterized by its large channel capacity, low transportation cost, and environment-friendliness. The Three Gorges Dam (TGD), which is located in the upper stream of the Yangtze River, has brought many benefits such as power generation, flood prevention, and navigation capacity [2]. It has become a bottleneck due to the growing traffic volume of inland ships and insufficient navigation capacity of the lockage. The Three Gorges Dam (TGD), which is located in the upper stream of the Yangtze River, has brought many benefits such as power generation, flood prevention, and navigation capacity [2] since commencing.

Freight
Literature Review
Formulation of the Basic Model
Formulation of Mathematical Components
Optimization Model Under the Transshipment Mode
Results and Analyses
Conclusions
Policy Implications
Full Text
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