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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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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.
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Keywords: freight transport; logistics; multi-mode; network model; price elasticity

Document Type: Research Article

Affiliations: UCLouvain Mons, GTM, 151 Ch. de Binche, Mons, B-7000, Belgium

Publication date: September 3, 2014

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