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Airport Economics in Latin America and the Caribbean
Traditionally, air transport infrastructure in Latin America and the Caribbean (LAC) was exclusively under government ownership and management. Starting in the late 1990s, several Latin American countries implemented innovative public-private partnerships (PPP) that transferred the financing and management of air transport sector infrastructure to the private sector. This book presents the findings of a first-ever, comprehensive study of how LAC region airports have evolved during this notable period of transition in airport ownership. It is an unbiased, positive analysis of what happened, rather than a normative analysis of what should be done to reform the airport sector or to attract private participation. It takes the first step in response to the need for more conclusive information about the influence of airport ownership on economic performance. The book is centered around the study of three dimensions of performance: productive efficiency, institutional set up for the governance of the sector, and financing of airport PPPs.Using rigorous analytical tools, this book answer a series of key questions to evaluate the introduction of private sector participation in the Latin American airport sector: Are LAC airports technically efficient? How has efficiency evolved in the last decade? Are privately-run airports more efficient than state-operated airports? How do independent regulators compare with government agencies in accountability, transparency, and autonomy? How has the level and structure of aeronautical tariffs changed in recent years? The main audience of this book are air transport practitioners, transport regulators, decisionmakers in transport ministries, and PPP units and academics.
eBook
Assessing Vulnerability of Transportation Networks for Disaster Response Operations
Transportation networks and systems are vulnerable to natural disasters. During disaster response operations, the degraded functionality of the system can negatively impact the affected population because disrupting relief activitiesincreases human suffering resulting from the lack of access to essential goods or services. Mathematical formulations for assessing transportation network vulnerability do not generally consider this lack of access or deprivation costs, and can lead to inappropriate strategies for humanitarian assistance. This paper proposes a transportation network vulnerability assessment model that allows identifying critical links for the development of high impact disaster response operations. The model is based on an economic analysis that considers the logistical costs of the distribution operations and the external effects derived from the delays in the provision of basic supplies (deprivation costs). The approach is particularly useful for planning resilient disaster response plans in the preparednessstage, prioritizing investment for mitigation and adaptation, and prioritizing the rehabilitation (access restoration) of the disrupted links in the response and recovery stages. In addition to numerical experiments using case study networks, the authors implemented the model to the coffee-producing region of Colombia, which was hit by an earthquake in 1999.
Journal Article
Total cost minimizing transit route structures considering trips towards CBD and periphery
The total cost minimizing approach to design transit systems is extended here beyond the usual dimensions of fleet (frequency) and vehicle size in order to examine the most appropriate spatial setting of transit lines as well. Motivated by the case of large cities in Latin America, characterized by high volumes of relatively long urban trips, we analyze the best ways to provide public transport services in a simplified urban setting represented by an extended cross-shaped network, where short trips (periphery–center) and long trips (periphery–periphery) coexist, generating economies of density. Three families of strategic lines structures are compared: mostly direct, feeder–trunk and hub and spoke. For each structure fleet and vehicle sizes are optimized, considering total (users’ and operators’) costs. The best structure is found parametrically in total passenger volume, the proportion of long trips and the value of the transfer penalty. The advantages of each dominating structure are explained in terms of factors like idle capacity, waiting or in-vehicle times and number of transfers.
Journal Article
Incentivizing alternative fuel vehicles: the influence of transport policies, attitudes and perceptions
This paper aims to evaluate the influence of policies, attitudes and perceptions when incentivizing alternative fuel vehicles. The impact of possible policies such as gasoline taxes increases, purchase price subsidies, tax exemptions, and increases in fuel recharging station availability for alternative fuelled vehicles is evaluated using hybrid choice models. The models also allow assessing the sensitivity of latent variables (i.e., attitudes and perceptions) in the car purchase behaviour. The models are estimated using data from a stated choice survey collected in five Colombian cities. The latent variables are obtained from the rating of statements related to the transport system, environmental concern, vehicle preferences, and technology. The modelling approach includes regression between latent variables. Results show that environmental concern and the support for green transport policies have a positive influence on the intention to purchase alternative fuel vehicles. Meanwhile, people who reveal to be car-dependent prefer to buy standard fuelled vehicles. The analysis among cities shows similar trends in individual behaviour, although there are differences in attribute sensitivities. The policy scenario analysis revealed high sensitivity to capital cost and the need for extensive investments in refuelling stations for alternative fuel vehicles to become attractive. Nevertheless, all policies should not only be directed at infrastructure and vehicles but also be focused on user awareness and acceptance of the alternative fuel vehicles. The analysis suggests that in an environmentally conscious market, people prefer alternative fuels. However, if the transport policies support private transport, the market shares of alternative fuel vehicles will decrease.
Journal Article
Efficiency and Substitutability of Transit Subsidies and Other Urban Transport Policies
This paper analyzes the efficiency of and the substitutability between three urban congestion management policies: transit subsidization, car congestion pricing, and dedicated bus lanes. The model features user heterogeneity, cross-congestion effects between cars and transit, intertemporal and total transport demand elasticities, and is simulated using data for London, UK and Santiago, Chile. We find that the substitutability between policies is large and, in particular, the marginal contribution of increased transit subsidies, as other policies are implemented first, diminishes rapidly. Bus lanes are an attractive way to increase frequencies and decrease fares without injecting public funds.
Journal Article
Impact of Private Sector Participation in Infrastructure
Infrastructure plays a key role in fostering growth and productivity and has been linked to improved earnings, health, and education levels for the poor. Yet Latin America is currently faced with a dangerous combination of relatively low public and private infrastructure investment. Those investment levels must increase, and it can be done. If Latin American and Caribbean governments are to increase infrastructure investment in politically feasible ways, it is critical that they learn from experience and have an accurate idea of future impacts. This book contributes to this aim by producing what is arguably the most comprehensive privatization impact analysis in the region to date, drawing on an extremely comprehensive dataset.
eBook
Investment in the Shadow of Conflict: Globalization, Capital Control, and State Repression
In conflict-prone societies, the fear of expropriation that accompanies a regime change reduces capital investment. These reductions in investments, in turn, harm the economy, amplifying the likelihood of regime change. This article studies the implications of these feedback channels on the interactions between globalization, capital control, state repression, and regime change. I show that processes that facilitate capital movements (e.g., globalization, economic modernization, and technologies that reduce transportation costs) amplify the likelihood of regime change in conflict-prone societies and strengthen the elite’s demand for a strong coercive state. In particular, to limit their collective action problem and manage the political risk of regime change, capitalists support a state that imposes capital control. We identify two conflicting forces, the Boix Effect and the Marx Effect, which determine when capital control and state repression become complements (Nazi Germany) or substitutes (Latin American military regimes) in right-wing regimes.
Journal Article
The influence of passenger load, driving cycle, fuel price and different types of buses on the cost of transport service in the BRT system in Curitiba, Brazil
This study analyses the influence of passenger load, driving cycle, fuel price and four different types of buses on the cost of transport service for one bus rapid transit (BRT) route in Curitiba, Brazil. First, the energy use is estimated for different passenger loads and driving cycles for a conventional bi-articulated bus (ConvBi), a hybrid-electric two-axle bus (HybTw), a hybrid-electric articulated bus (HybAr) and a plug-in hybrid-electric two-axle bus (PlugTw). Then, the fuel cost and uncertainty are estimated considering the fuel price trends in the past. Based on this and additional cost data, replacement scenarios for the currently operated ConvBi fleet are determined using a techno-economic optimisation model. The lowest fuel cost ranges for the passenger load are estimated for PlugTw amounting to (0.198–0.289) USD/km, followed by (0.255–0.315) USD/km for HybTw, (0.298–0.375) USD/km for HybAr and (0.552–0.809) USD/km for ConvBi. In contrast, the coefficient of variation (
C
v
) of the combined standard uncertainty is the highest for PlugTw (
C
v
: 15–17%) due to stronger sensitivity to varying bus driver behaviour, whereas it is the least for ConvBi (
C
v
: 8%). The scenario analysis shows that a complete replacement of the ConvBi fleet leads to considerable higher cost of transport service on the BRT route, amounting to an increase by 64% to 139%, depending on the bus fleet composition. Meanwhile, the service quality is improved resulting in 42% up to 64% less waiting time for passengers at a bus stop.
Journal Article
Road safety: Challenges and opportunities in Latin America and the Caribbean
An estimated 1.3 million people die in traffic accidents each year worldwide and millions more are injured, with developing countries disproportionately affected. It is predicted that the number of global traffic deaths will be around 1.8 million annually by 2030, making it the eight cause of death in the world. This paper provides an overview of salient road safety issues in the Latin America and Caribbean (LAC) region. It also reviews existing theoretical and causal empirical evidence of interventions to improve road safety outcomes, concentrating on three core areas: safer roads and mobility, safer vehicles, and safer road users. Despite the existence of potentially cost-effective and life-saving interventions, there is surprisingly little rigorous evidence on the effectiveness of road safety programs in the LAC context. This paper discusses promising areas for policy experimentation and future research.
Journal Article