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Free Content An Analysis of Travel Demand in Japan's Intercity Market

Empirical Estimation and Policy Simulation

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This study estimates a travel demand model in Japan's intercity market with aggregate OD data. The estimated model is used to estimate the effects of introducing super high-speed-rail (HSR), and alternative levels of CO2 emission taxation on the demands for airline and HSR modes. It is found that: (a) there is clear product differentiation between air and rail travel; (b) Japanese consumers are sensitive to travel time and frequency; (c) the proposed Tokyo–Osaka HSR services would drive airlines out of the route while stimulating substantial new traffic; and (d) CO2 taxation would have a moderate impact on modal shift.
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Document Type: Research Article

Publication date: 01 January 2014

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