Analyzing the effect of government subsidy on shippers’ mode switching behavior in the Belt and Road strategic context

Tanmoy Kundu and Jiuh-Biing Sheu

Transportation Research Part E: Logistics and Transportation Review, 2019, vol. 129, issue C, 175-202

Abstract: The Chinese government is offering subsidies to promote the recently developed China-Europe rail freight corridor under its Belt and Road Initiative (BRI). Despite significant subsidies, the rail mode (China Railway Express) continues to struggle with low load factor. Accordingly, a competition model (rail vs. maritime) grounded on game-theoretic technique is proposed to analyze the effect of the government subsidy on shippers’ mode switching (from maritime to rail) behavior. Analytical results based on a case of China-Germany rail freight transportation describe shippers’ mode switching patterns in response to a mode subsidy and suggest a subsidy scheme for the government.

Keywords: Belt and Road Initiative; Mode switching behavior; Mode subsidy; China-Europe freight; Game theory (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S136655451930273X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:129:y:2019:i:c:p:175-202

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic
http://www.elsevier. ... 600244/bibliographic

DOI: 10.1016/j.tre.2019.08.007

Access Statistics for this article

Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().