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Transport policy, rail freight sector and market structure: The economic effects in Brazil

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  • Betarelli, Admir Antonio
  • Domingues, Edson Paulo
  • Hewings, Geoffrey John Dennis

Abstract

After fifteen years of railway concessions in Brazil, the rail freight sector became responsible for over 26% of the total transported volume in the country, an increase of 20% during this period. This Brazilian experience led a recovery in productivity and investment levels, with an improvement in service quality and modernization of the sector. Nevertheless, the rail price control mechanisms were almost unrestricted, allowing the concessionaires keep prices at very high levels. Just in 2012, it was held the first revision of price cap regulation of the sector. In this paper, we analyze the long-turn economic impacts of the rail freight sector tariff review policy in Brazil through the use of a dynamic general equilibrium model. The model incorporates some forms of market imperfections within its theoretical structure. Regardless the assumptions attributed to productive system, the main findings suggest that tariff policies promote positive effects on GDP growth, exports, and investments, as well as on other sectors, such as those most intensive in freight railways. However, the projections seem to confirm an onus on rail freight sector, with fall on its supply, return rate and private investment.

Suggested Citation

  • Betarelli, Admir Antonio & Domingues, Edson Paulo & Hewings, Geoffrey John Dennis, 2020. "Transport policy, rail freight sector and market structure: The economic effects in Brazil," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 1-23.
    • Handle: RePEc:eee:transa:v:135:y:2020:i:c:p:1-23
    DOI: 10.1016/j.tra.2020.02.018
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    Cited by:

    1. Betarelli Junior, Admir Antonio & Domingues, Edson & Faria, Weslem & Magalhães, Aline & Proque, Andressa, 2022. "Tax elimination on terminal handling charges of the sectoral importers: assessing the economic effects in Brazil," Conference papers 333481, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Betarelli Junior, Admir Antonio & Faria, Weslem Rodrigues & Gonçalves Montenegro, Rosa Livia & Bahia, Domitila Santos & Gonçalves, Eduardo, 2020. "Research and development, productive structure and economic effects: Assessing the role of public financing in Brazil," Economic Modelling, Elsevier, vol. 90(C), pages 235-253.
    3. William Costa & Britaldo Soares-Filho & Rodrigo Nobrega, 2022. "Can the Brazilian National Logistics Plan Induce Port Competitiveness by Reshaping the Port Service Areas?," Sustainability, MDPI, vol. 14(21), pages 1-18, November.
    4. Francisco Gildemir Ferreira da Silva & Renata Lúcia Magalhães de Oliveira & Marin Marinov, 2020. "An Analysis of the Effects on Rail Operational Efficiency Due to a Merger between Brazilian Rail Companies: The Case of RUMO-ALL," Sustainability, MDPI, vol. 12(12), pages 1-23, June.
    5. Betarelli Junior, Admir Antonio & Faria, Weslem Rodrigues & Proque, Andressa Lemes & Perobelli, Fernando Salgueiro & de Almeida Vale, Vinicius, 2021. "COVID-19, public agglomerations and economic effects: Assessing the recovery time of passenger transport services in Brazil," Transport Policy, Elsevier, vol. 110(C), pages 254-272.
    6. Melo dos Santos, Marcos Eduardo & Nem Singh, Jewellord & Castro, Rui & Santos, Hugo & Costa, Hirdan Katarina de Medeiros & dos Santos, Edmilson Moutinho, 2024. "SWOT analysis of Brazilian energy policy: A comparative panel data analysis of the twenty largest economies," Energy Policy, Elsevier, vol. 191(C).
    7. Cui, Qi & He, Ling & Liu, Yu & Zheng, Yanting & Wei, Wei & Yang, Bo & Zhou, Meifang, 2021. "The impacts of COVID-19 pandemic on China’s transport sectors based on the CGE model coupled with a decomposition analysis approach," Transport Policy, Elsevier, vol. 103(C), pages 103-115.
    8. Elżbieta Szaruga & Elżbieta Załoga & Arkadiusz Drewnowski & Paulina Dąbrosz-Drewnowska, 2023. "Convergence of Energy Intensity of the Export of Goods by Rail Transport: Linkages with the Spatial Integration and Economic Condition of Countries," Energies, MDPI, vol. 16(9), pages 1-24, April.

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    More about this item

    Keywords

    Tariff policy; Rail freight transport; Imperfect competition; CGE model;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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