Welfare implications for air passengers in China in the era of high-speed rail
Article
Article Title | Welfare implications for air passengers in China in the era of high-speed rail |
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ERA Journal ID | 40708 |
Article Category | Article |
Authors | Yang, Hangjun (Author), Ma, Wenliang (Author), Wang, Qiang (Author), Wang, Kun (Author) and Zhang, Yahua (Author) |
Journal Title | Transport Policy |
Journal Citation | 95, pp. A1-A13 |
Number of Pages | 13 |
Year | 2020 |
Publisher | Elsevier |
Place of Publication | United Kingdom |
ISSN | 0967-070X |
1879-310X | |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.tranpol.2020.04.007 |
Web Address (URL) | https://www.sciencedirect.com/science/article/pii/S0967070X19309850 |
Abstract | Despite facing the rapid expansion of high-speed rail (HSR) services, China’s airline industry has experienced substantial growth in the last decade. Using panel data from 2007 to 2016, this paper assesses the welfare changes for both economy- and business-class air passengers in China due to the HSR entry. We found that the demand for air travel is inelastic and that the HSR entry has led to significant welfare changes for air passengers. Specifically, air passengers in the short-distance markets were worse off, largely driven by a dramatic cut in flight frequency. However, over time, their welfare could improve when flight frequencies were restored. In contrast, in the medium- and long-distance markets, air passengers could be better off immediately after the HSR entry, thanks to the lower airfare and insignificant drop in flight frequency. However, a reduction in welfare was observed in the long run, after airlines gradually reduced the flight frequency. |
Keywords | Airline competition; high-speed rail; welfare analysis; business class; economy class |
ANZSRC Field of Research 2020 | 350901. Air transportation and freight services |
380109. Industry economics and industrial organisation | |
380117. Transport economics | |
Public Notes | File reproduced in accordance with the copyright policy of the publisher/author. |
Byline Affiliations | University of International Business and Economics, China |
Capital University of Economics and Business, China | |
School of Commerce | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q5y18/welfare-implications-for-air-passengers-in-china-in-the-era-of-high-speed-rail
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