Intermodal competition between high-speed rail and air transport in Spain. (August 2017)

• Record Type: Journal Article
• Authors: Gundelfinger-Casar, Javier; Coto-Millán, Pablo
• Is Part Of: Utilities policy. Volume 47(2018)
• Page Start: 12
• Page End: 17
• Publication Date: 2017-08
• Subjects: Generalised cost -- High-speed rail -- Air transport; Public utilities -- United States -- Periodicals; Public utilities -- Government policy -- United States -- Periodicals; 363.6
• DOI: 10.1016/j.jup.2017.06.001
• Languages: English
• ISSNs: 0957-1787

Abstract

Abstract: This paper analyses generalised passenger transport costs for the period 2005 to 2014, following the launch of high-speed rail in Spain for routes on which this mode competes with air travel. Demand functions for air links are analysed using an empirical methodology. Demand functions depend on income, generalised cost of air transport, and the price of alternative means of transport. The research is original in that, to our knowledge, these cross elasticities for the ten-year study period have not previously been estimated. The findings suggest that demand for air travel has fallen due to increased competition from high-speed rail. Highlights: This paper analyses generalised passenger transport costs since the launch of high-speed rail in Spain vs. air travel. The time horizon of this study – January 2005-December 2014 – is justified by the availability of data. Demand functions for air mode between Madrid-Barcelona and Madrid-Valencia will be analysed using an empirical methodology. Using an econometric method of the weighted least squares technique for both demand equations. We demonstrate that passenger demand for air travel has fallen due to increased competition from high-speed rail transport.