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Estimating Freight Transport Price Elasticity in Multi-mode Studies: A Review and Additional Results from a Multimodal Network Model

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  • Michel Beuthe
  • Bart Jourquin
  • Natalie Urbain

Abstract

The paper presents a detailed comparative review of price/cost elasticity estimates published in a number of studies on multi-mode freight transport demands. It attempts to determine which factors could explain the wide diversity of estimates: data aggregation, diversity of markets, and methodology. It also presents new estimates for rail, road, and waterway modes, derived from a multimodal freight network model of the Rhine area market. Direct and cross-elasticities are estimated for 11 groups of commodities and per distance category. The results are critically assessed by comparison with the reviewed studies. The paper concludes with a few recommendations about meaningful uses of existing estimates and the need for additional experiments with different methodologies applied on a common data basis.

Suggested Citation

  • Michel Beuthe & Bart Jourquin & Natalie Urbain, 2014. "Estimating Freight Transport Price Elasticity in Multi-mode Studies: A Review and Additional Results from a Multimodal Network Model," Transport Reviews, Taylor & Francis Journals, vol. 34(5), pages 626-644, September.
    • Handle: RePEc:taf:transr:v:34:y:2014:i:5:p:626-644
    DOI: 10.1080/01441647.2014.946459
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    References listed on IDEAS

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    Cited by:

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    2. Jourquin, Bart & Beuthe, Michel, 2019. "Cost, transit time and speed elasticity calculations for the European continental freight transport," Transport Policy, Elsevier, vol. 83(C), pages 1-12.
    3. Pedinotti-Castelle, Marianne & Pineau, Pierre-Olivier & Vaillancourt, Kathleen & Amor, Ben, 2022. "Freight transport modal shifts in a TIMES energy model: Impacts of endogenous and exogenous modeling choice," Applied Energy, Elsevier, vol. 324(C).
    4. Johansson, Magnus & Vierth, Inge & Holmgren, Kristina & Cullinane, Kevin, 2023. "How will electrification and increased use of new fuels affect the effectiveness of freight modal shift policies?," Working Papers 2023:4, Swedish National Road & Transport Research Institute (VTI).
    5. Merkel, Axel & Lindgren, Samuel, 2022. "Effects of fairway dues on the deployment and utilization of vessels: Lessons from a regression discontinuity design," Transport Policy, Elsevier, vol. 126(C), pages 204-214.
    6. Chaoda Xie & Xifu Wang & Daisuke Fukuda, 2020. "On the Pricing of Urban Rail Transit with Track Sharing Freight Service," Sustainability, MDPI, vol. 12(7), pages 1-29, April.
    7. Wang, Xiaokun Cara & Kim, Woojung & Zhang, Dapeng, 2023. "What to do in response to toll increases: A behavioral analysis of freight carriers in New York State," Transportation Research Part A: Policy and Practice, Elsevier, vol. 173(C).

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