Transport Pricing Research Articles

Carbon pricing in Germany's road transport and housing sector: Options for reimbursing carbon revenues

In 2021, Germany launched a national emissions trading system (ETS) in its road transport and housing sectors that increases the cost burden of consumers of fossil fuels, the major source of carbon dioxide (CO2) emissions. A promising approach to secure public acceptance for such a carbon pricing would be to entirely reallocate the resulting “carbon” revenues to consumers. This article discusses three alternatives that were discussed in the political arena prior to the introduction of the national carbon pricing: a) a per-capita reallocation to private households, b) the reduction of electricity prices by, e.g., decreasing the electricity tax, as well as c) targeted financial aid for vulnerable consumers, such as increasing housing benefits. To estimate both the revenues originating from carbon pricing and the resulting emission savings, we employ a partial equilibrium approach that is based on price elasticity estimates on individual fossil fuel consumption from the empirical literature. Most effective with respect to alleviating the burden of poor households would be increasing housing benefits. While this measure would not require large monetary resources, we argue that the remaining revenues should be preferably employed to reduce Germany's electricity tax, which becomes more and more obsolete given the steadily increasing amount of electricity generated by renewable energy technologies.

Israel: Is COVID-19 Expected More Than a War? (The Increase in Customs Value in Israel, Due to the COVID-19 Increase in Transport Prices - The Problem, and the Solution)

Sea freight prices have risen sharply, due to the COVID-19 crisis, global shortages of ships, declining competition in the field, and containers of contagious demand. The increase in transportation costs leads to the increase in the value of goods for customs purposes, and to a further collection of customs duties. The Israeli law allows the state to facilitate importers and waive the extra customs duties, and similar and other facilitations have been made in the past. Therefore, all that is required is the flexibility and activation of goodwill on the part of the state, when interpreting the law.

Pricing and quality setting strategy in maritime transportation: Considering empty repositioning and demand uncertainty

Imbalanced international trade and the limited number of containers in the maritime transportation industry have resulted in considerable costs and decreased profits for shipping firms. To manage these issues, this study utilizes price management techniques to control empty container repositioning in a transportation system. In this system, there is a firm providing transportation services between two ports in both directions. Each direction has its own uncertain potential demand that can be affected by the prices and the quality set by the firm. We develop a mathematical formulation to set the quality and prices of the service in order to maximize the firm's profit. Due to demand uncertainty, we analyze different states of demand realization and discuss optimal policies for each state. These policies are then analyzed to develop a robust pricing and quality setting strategy under uncertainty. In addition, in order to easily implement the developed strategy, we propose an algorithm to convert the obtained results into a practical procedure that can be implemented by the shipping firm. Lastly, we investigate the impact of several factors on the firm's profit and demonstrate that not only the firm's profit but also the imposed regret depend on both internal and external factors such as the potential demands, price sensitivity, empty and loaded movement cost, and uncertainty control parameter.

ISRAEL: TRANSPORT COSTS AND CUSTOMS DUTY — IS ON YOU THE INCREASE IN CUSTOMS VALUE IN ISRAEL, DUE TO THE INCREASE IN TRANSPORT PRICES – THE PROBLEM, AND THE WAY TO THE SOLUTION

This article discusses transport costs and customs duties, namely the problems and solutions to the increase in customs value in Israel due to the increase in transport prices

Competitiveness of Price in International Road Freight Transport

Over the last 30 years, the competition in road transport has increased significantly. For a transport company to maintain its position in the road freight transport market, the knowledge of the accurate costs arising from the transportation process is an important tool in the current competitive struggle. Carriers quantify the transportation costs in the process of price creation using the routes utilization coefficient, also taking into account routes with an empty vehicle. The value is usually set as a constant in the range from 0 to 1. The purpose of this paper is to show that it is more appropriate and economically feasible to consider this as a variable which depends on the direction as well as on the time of the transportation. In this analysis, a twofactor ANOVA model was applied to actual data of transport offers to Slovakia from 18 different countries recorded on a daily basis in a period of one year. The analysis shows that the direction of transportation is a significant factor in the offer, and therefore it is appropriate to include this factor in the price creation. The results of this analysis are in practice directly applicable to modify the calculation procedures and thus gain a competitive advantage for the transport operator in calculating the transportation price. Using this methodology, the carrier can determine the price more accurately and achieve greater price competitiveness in road transport in the common EU market.

STRUKTUR BIAYA DAN PENENTUAN HARGA ANGKUT TBS KELAPA SAWIT OLEH KONTRAKTOR

Transporting F resh Fruit Bunches (F FB ) is an important activity in oil palm plantation companies. The FFB that is harvested, must be transported to the mill on the same day. The contractor is one of the parties who collaborates in transporting FFB. This study examine d the structure of the cost of transporting FFB by contractors, determining the transport price and the benefits obtained. This research was a case study at PT SINP (Surya Indah Nusantara Pagi) Pangkut Village, Arut Utara District, Kotawaringin Barat District, Central Kalimantan Province. There were 7 contractors working together in transporting FFB. The economic analysis includes fixed costs and variable costs, as well as determi ned the transportation price based on the distance to the palm oil mill The results showed that t he structure of the transportation costs incurred by the contractor consists of fixed costs (depreciation costs, capital interest costs, maintenance costs and vehicle taxes) while the variable costs include fuel costs, driver fees, FFB loading and unloading fees, and income tax costs. The cost of transportation for FFB contractors transporting FFB from afdeling close to PKS was IDR 20.09 / kg, and those far from the palm oil mill was IDR 31.75 / kg. The contractor's profit was higher if it transports FFB from afdeling closer to the palm oil mill

TEDARİK ZİNCİRİNDE KURU DÖKME VE GENEL YÜK TERMİNALLERİ: ALİAĞA İÇİN BİR DELPHI ÇALIŞMASI

Maritime transportation plays a vital role in the flow of various cargoes within a supply chain system. In this context, seaports have also started undertaking the provision of value-added services in the supply chain management, where logistics costs and service effectiveness are vital. Terminals that handle dry bulk cargoes which have low unit prices and high elasticity to transportation prices, and general cargoes that require different planning and management for almost each operation have significant roles in the chain as well. This study aims to determine and evaluate the role of dry bulk and general cargo terminals in the supply chain with the value-added logistic services by focusing on Aliağa Region. Delphi technique has been employed to shed light on the role of the dry bulk and general cargo terminals and manufacturers in the scope of supply-chain and logistics-based components. Findings indicate that service effectiveness is important as well as operational efficiency in such terminals and service characteristics should be improved to become more supply-chain oriented. Value-added services are considered as a differentiation factor where customers pay great attention.

A Bi-Level Model for Green Freight Transportation Pricing Strategy Considering Enterprise Profit and Carbon Emissions

Due to the impact of COVID-19, enterprises need effective pricing strategies to improve profits and viability. In order to fill research gaps in the literature relating to market competition among different freight modes and to adjust the freight transportation structure by optimizing transportation prices, we propose a multi-objective bi-level programming pricing model that considers market competition and the carbon emissions of the freight system in China. First, an objective function in upper-level planning was used to improve logistics enterprise profits and reduce the total carbon emissions of the freight system. Then, a generalized cost function for the freight transportation mode was designed to quantify the market competition among different transportation modes, and a user equilibrium assignment model was established to obtain the results of cargo flow assignment in lower-level planning. To solve the model, a sensitivity analysis algorithm was designed, and a logistics network example was used to verify the effectiveness of the model. The experimental results show that reasonable freight price adjustment can effectively increase enterprise profits and reduce the total carbon emissions of the freight system. In this paper, we provide a new method for freight pricing research, considering the market competition of multiple transportation modes, and provide a new idea for adjusting the transportation structure through freight price optimization, which will play a positive role in promoting the development of green freight.

Minimizing Greenhouse Gas Emissions From Ships Using a Pareto Multi-Objective Optimization Approach

Abstract To confront climate change, decarbonization strategies must change the global economy. According to statements made as part of the European Green Deal, maritime transport should also become drastically less polluting. As a result, the price of transport must reflect the impact it has on the environment and on health. In such a framework, the purpose of this paper is to suggest a novel method for minimizing emissions from ships, based on so-called Pareto multi-objective optimization. For a given voyage by a ship, the problem is to minimize emissions on the one hand and minimize fuel consumption or passage time on the other. Minimizing emissions is considered as the preferred objective. Therefore, the objective of minimizing fuel consumption or passage time needs to be reformulated as a constraint. Solving such a problem consists of finding most favourable path and speed for the ship and satisfying the optimization criteria. Relatively new systems such as hybrid diesel–electric systems have the potential to offer significant emissions benefits. A hybrid power supply utilizes the maximum efficiency of the direct mechanical drive and the flexibility of a combination of combustion power from the prime mover and stored power from energy storage from an electrical supply, at part load and overload. A new report by the American Bureau of Shipping suggests that maritime transport is likely to meet the International Maritime Organization’s target by 2030, solely by using current technology and operational measures. However, this would not be enough to attain the target of reducing CO2 emissions by 2050 by at least 50% compared to 2008. New technologies and operational methods must be applied.

Structural Equation Modeling (SEM) untuk Mengukur Pengaruh Pelayanan, Harga, dan Keselamatan terhadap Tingkat Kepuasan Pengguna Jasa Angkutan Umum Selama Pandemi Covid-19 di Kota Ambon

<p>Structural Equation Modeling (SEM) is a statistical analysis technique used to build and test statistical models in the form of causal models. Large-Scale Social Restrictions (PSBB) are government policies to break the chain of spreading the corona virus (Covid-19). This policy certainly has an impact on drivers of public transport services. This research shows that the passengers are very satisfied with the travel safety factor. Meanwhile, service factors and passenger public transport fares are in the satisfied category. Furthermore, the variable service quality (MP), the price of public transportation (H), and passenger safety (KP) have an influence on passenger satisfaction. Because the <em>t</em>-value is greater than 1.96 (for the real level of 5%). The influence of service quality, price and safety variables on passenger satisfaction is 78.1%, the remaining 21.9% is influenced by other variables outside the research.</p><strong>Keywords: </strong>covid-19, structural equation modeling, satisfaction.

Multimodal pricing model in a deficit public transport market: Implication of informal transport

This article explores one of the most important segments of public transport in developing countries, namely informal transport and its relation to the pricing system of public transport. This paper is an extension of the work of Tirachini, A. and Hensher, D.A., who have developed a model to analyze the impact of non-motorized transport on an optimal public transport pricing policy. We are looking at three congested modes of transportation, and we introduce informal transport as an independent mode of transport instead of non-motorized transport in this analysis. Informal transport has never been incorporated into an intercity transport pricing analysis and this is the first one that informal transport has been considered an autonomous mode in a pricing model. We tried to show how the pricing policy would change by considering or ignoring the Informal Transport. We propose three congested modes (Public transport, particular vehicular and informal transport) pricing model that incorporates informal transport and reconstruct the impact of a capacity constraint on optimal public transport prices. Pricing model were developed explaining the first best and second best prices and the changes effects of capacities and frequency of public transport bus.

Do iron ore, scrap steel, carbon emission allowance, and seaborne transportation prices drive steel price fluctuations?

We examine the sensitivity of China's steel price movements to iron ore, scrap steel, carbon emission allowance, and seaborne transportation prices over the period 2010–2020. More specifically, the price spillover, the dependence structure, and the spillover risk between iron ore, scrap steel, carbon emission allowance, seaborne transportation, and China's steel prices are analyzed in a multivariate framework, vine copula, and conditional risk setup. Our results demonstrate that before and after the implementation of China's policy to cut overcapacity in steelmaking, China's steel prices are mainly subject to iron ore prices. Our results have potential implications for policymakers to exploit market incentives to regulate steelmakers' investments and capacity in steelmaking.

New paradigms of quantification of economic efficiency in the transport sector

Research background: In determining the prices in road transport, carriers usually use the calculations based on a so-called routes utilisation coefficient, which allows the carrier to also take the possibility of the return rides without load into account. Currently, it is usually used as a constant from the interval from zero to one.
 Purpose of the article: Considering a different offer of return transport from individual European Union (EU) countries, it can be assumed that the routes utilisation coefficient should have different values because there is a varying level of non-zero probability that the vehicle will return without a load. This study therefore proposes a new approach to determining the value of this coefficient based on transport direction. The study also aims to identify clusters of EU countries, for which the common value of the coefficient should be set.
 Methods: The Analysis of Variance (ANOVA) test was used to verify the assumption of the differences among the means of transport offers. Cluster analysis was used to identify the aforementioned groups of countries. This analysis is based on real data on transport offers to Slovakia from 18 different EU countries.
 Findings & value added: The results of the analysis can also be used in other EU countries because if significant differences in transport offers to Slovakia exist in individual countries, there is a reasonable assumption that this conclusion will also be valid in other countries. The analysis demonstrated that it is more appropriate to use the routes utilisation coefficient with various values, dependent on the transport direction. For the transport companies, implementation of the obtained results into practice is beneficial to increase their competitiveness through the more precise setting of transport prices, but also to the optimisation of the transport price itself with regard to the expected costs.

Effects of Venezuelan Migration on Colombian Price Level

This study evaluates the causal impact of the Venezuelan migration on the price level of goods and services in Colombian host cities. The inflow of migrants to a city have a demand shock through an increase in consumption levels, and a supply shock through a decrease in the production costs. I use an Enclave instrumental variable strategy, which exploits the tendency of migrants to settle in places with previous migrant networks. I find that the Venezuelan migration increases averages prices in the non-tradable sector and has no effect on the price of food, tradable goods, transport and energy sectors. I provide evidence that this result may be related to the effect migration has on the price of education and housing. My estimates suggests that a 1 percentage point increase in the migration rate is associated with an 0.913% average increase in the price of the nontradables. This result is consistent with a demand side shock.

Asymmetric pass‐through between oil and transport prices: Evidence from a nonlinear analysis

The present study focuses on a widely discussed phenomenon, Asymmetric Price Transmission, which refers to the nonlinear behavior of prices when they are evaluated at their crests and troughs. The underlying study attempts to capture this behavior, giving special emphasis to the transportation sector of Pakistan. By employing monthly data of retail oil prices spanning between 1990 and 2016, we have tried to empirically investigate the existence of this phenomenon in a sector directly linked with oil price variations. This sector has been often overlooked in terms of its evaluation within the given context. Our study employs a recently developed nonlinear autoregressive distributed lag model (NARDL), to examine the pass‐through of oil prices into the fares of the transportation sector. This model allows us to capture short‐run and long‐run estimates simultaneously and also offers an opportunity to determine the magnitude of respective positive and negative oil price shocks. In addition, this study categorizes the transport sector into subsegments of LTVs and HTVs and finds differential patterns in the response of these two categories against oil price variations. The obtained results indicate that oil prices affect the fares of the transportation sector asymmetrically. The findings of the study are instrumental for identifying the pass‐through of oil prices to the subsegments of transport sectors. This identification about the differential impact/pass upon the various segments of the transport sector can be helpful for policymakers, especially if they are concerned about devising a trickle‐down policy in periods of oil price decline.

Cost and Performance Optimisation in the Technological Phase of Parcel Delivery – A Literature Review

The present review paper provides a systematic insight into the studies published so far when it comes to the research on the cost and performance optimisation in the parcel delivery phase. Globalisation, as well as the new trends, such as selling online, directly influences the demands for the delivery of goods. Demand for the delivery of goods proportionally affects the transport prices. A great majority of deliveries is carried out in densely populated urban areas. In terms of costs, the greatest part in the courier organisations costs is observed in the technological phase of parcel delivery, which is at the same time the least efficient. For that reason, significant improvement of performance and cost optimisation in the very delivery phase is a rather challenging field for the researchers. New algorithm-based technologies, innovations in the logistics and outsourcing of individual technological phases are ways by means of which one strives to enhance the delivery efficiency, to improve performance and quality, but also - to optimise the costs in the last phase of delivery. The aim of the present paper is to offer a systematic review into the most recent research in the field of technology, innovations and outsourcing models with the aim of reducing the cost and enhancing the productivity and quality in parcel delivery.

Online Transportation Price War: Indonesian Style

Thanks to the brilliant innovation of the expanding online transportation companies, the Indonesian people are able to obtain an affordable means of transportation. This three major ride-sharing companies (Go-Jek, Grab, and Uber) provide services which not only limited to transportation service but also providing services for food delivery, courier service, and even shopping assistance by utilizing gigantic armada of motorbikes and cars which owned by their ‘driver partners’. These companies are competing to gain market share by implementing the same strategy which is offering the lowest price. This paper would discuss the Indonesian online transportation price war by using price comparison analysis between three companies. The analysis revealed that Uber was the winner of the price war, however, their ‘lowest price strategy’ would lead to their downfall not only in Indonesia but in all of South East Asia.

A Game-Theoretic Approach to the Freight Transportation Pricing Problem in the Presence of Intermodal Service Providers in a Competitive Market

This article studies a competitive freight transportation pricing problem in the presence of two Intermodal Service Providers (ISPs) and a Direct Transportation System (DTS). The ISPs apply both rail and road transportation modes to carry the demands of a network of customers. The DTS uses only roads to carry the demands, without any transhipment at a distribution center. Each customer chooses its best transportation service based on the prices offered by the ISPs and the expenses of using the DTS. The ISPs determine their prices to maximize their profits, considering the customers’ choice behaviour. In order to determine the equilibrium decisions, a non-cooperative game-theoretic approach based on Stackelberg leader-follower competition is applied. Mixed-integer linear programming models are proposed to formulate this competition. A real-life case study is also conducted to demonstrate the validity of the models. We find that a barrier pricing strategy from the leader to deter the entrance of the follower ISP is not recommended for both of them because it may even lead to a negative value of profits for the leader. Finally, some sustainability objectives of the government, as the strategic decision maker, are examined. The results could help the government assess the effects of its policies on the transportation market, the environment, and the society.

Transport prices, touristic flow and policy: the case of the high-speed-railway in Andalusia (Spain)

The Spanish high-speed train, known as AVE, has been the commitment in Spain's transport infrastructure for the past 25 years. Along the first twenty years of use, however, the use of this means of transport has presented some figures of utilization well below than anticipated, and very far from other countries'—such as Japan or France—figures. In this work, through descriptive and econometric analysis, we demonstrate how certain political decisions, based on the pricing model mainly, have managed to change the trend and maintain a stable growth process in the number of passengers, favouring tourist flows in a country very dependent on tourism such as Spain.

Welfare Analysis of Cities: Urban Sprawl, Transportation Pricing, and the Optimal Rawlsian Town

Welfare Analysis of Cities: Urban Sprawl, Transportation Pricing, and the Optimal Rawlsian Town