Title: Air and high-speed rail competition and cooperation: Recent theoretical and empirical analyses
Abstract: This lecture provides an interpretative survey of research studies on the interactions between high-speed rail (HSR) and air transportation. Both modal competition and cooperation issues will be discussed. The lecture starts with an overview of the HSR developments, especially the dramatic growth of HSR in China. It proceeds with a review of the theoretical studies on the HSR-air transport interactions. It is then followed by empirical studies. Finally, the presenter will discuss a specific study* that illustrates both the theoretical and empirical approaches to the issues.
* A useful Reference: Wang, K., W. Xia, A. Zhang and Q. Zhang (2018), “Effects of train speed on airline demand and price: Theory and empirical evidence from a natural experiment,” Transportation Research Part B: Methodological, 114, 99-130.(The work in other important papers may also be touched on during the seminar.)
Title: Adaptation to Climate Change Effects and CompetitionBetween Ports: Invest Now or Later?
Abstract: In this paper, we ask whether ports should invest in adaptation to climate change effects earlieror later in a competitive market. We develop a two-period economic model with two "landlord"ports, each consisting of a port authority (PA) and a downstream terminal operator company(TOC). The two PAs compete with each other at the upstream level, and the two TOCs downstream.The model assumes an accumulation of information over time, allowing decision-makersto improve efficiency of adaptation investments. The results show that information accumulationreduces the ports’ investment size, while improving the discounted welfare associated with lateinvestments. When competition is intensified, it is optimal for ports to invest earlier than later.However, immediate investments are less preferred when competition is weak, even lesser in thepresence of information accumulation. Waiting is also a better option if the disaster occurrenceprobability is low or if the shippers’ expected disaster losses are negligible. Otherwise, the ports’investment decisions depend on the trade-off between the expected damage costs, information accumulationand the market conditions. These results hold for both the private and public ports.In most cases, social welfare is much higher with immediate investments, mainly because of theassociated positive spillover effects on the surrounding areas and other sectors of economy.
Dr Anming Zhang is a Full Professor of Operations and Logistics and holds Vancouver International Airport Authority Chair Professor in Air Transportation at Sauder School of Business, University of British Columbia (UBC). He served as the Chair of the Operations and Logistics Division, Sauder School of Business (2003-2005), and as the Director of UBC’s Centre for Transport Studies (2003-2004). He was the Vice President (Academic & Program) for the World Air Transport Research Society (2006-2017). He is the recipient of the “WCTR-Society Prize”, awarded to the overall best paper of the 8th World Conference on Transportation Research in Antwerp, Belgium, in 1998. Professor Zhang has published papers and books in the areas of transportation, logistics, industrial organization, and Chinese economy.