D5 Annex report WP 3: ETIS Database methodology ... - ETIS plus
D5 Annex report WP 3: ETIS Database methodology ... - ETIS plus
D5 Annex report WP 3: ETIS Database methodology ... - ETIS plus
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<strong>D5</strong> <strong>Annex</strong> <strong>WP</strong> 3: DATABASE METHODOLOGY AND DATABASE USER<br />
MANUAL – FREIGHT TRANSPORT DEMAND<br />
O 2 ΣO 2<br />
Total ΣD 1 ΣD 2 ΣD 3 ΣD 1..3 (= ΣO 1..2 )<br />
In this example, the sets of ‘O’s and ‘D’s belong to specific countries. Country to country totals are<br />
known, as are regions to/from country totals for a significant proportion of EU and accession<br />
countries.<br />
The solution attempted within CASSS was to derive a set of gravity models, one for each SITC<br />
commodity relating the volume of traffic in a given O/D cell to the distance between the origin and<br />
destination, and the size of the regions, measured by the total volumes of the commodity produced<br />
and consumed. Other measures of region ‘mass’ could be hypothesised, but in the CASSS study<br />
most were found to be closely correlated to the total import and export volumes.<br />
The functional form used was:<br />
T p = d n e md E p I p<br />
Where:<br />
T p<br />
d<br />
E p<br />
I p<br />
n,m<br />
= tonnes of product ‘p’ lifted<br />
= distance (kms)<br />
= Exports of product ‘p’<br />
= Imports of product ‘p’<br />
are the parameters to be estimated<br />
The use of a function that combines the exponential and powern (where n is negative) curves<br />
provides greater control in circumstances where distance is close to zero, than would be the case if<br />
only the powern curve were used. This is important if the parameters are being estimated for zone<br />
pairs where the distances are relatively high and then transferred to zone pairs where the distances<br />
could be small.<br />
The intention was to develop a technique that could estimate parameters for, potentially, a highly<br />
disaggregated set of commodities, and in which a number of nonlinear functions could be tested<br />
and compared. The parameters would be estimated at the national level, for which large volumes<br />
of data are available, using regional information where possible. The same parameters would then<br />
be transferred to compute values at a regionregion scale. So, for example, if at a national scale, the<br />
propensity to trade ( T p /E p I p ) for Portugal and Spain is higher than for Portugal and Finland, for a<br />
given product, it seems sensible to conclude that the propensity to trade for adjacent Portuguese and<br />
Spanish regions may be higher than for distant Portuguese and Spanish regions.<br />
It also appears sensible to distinguish between product groups, as, for example, any distance decay<br />
effects may be more significant for low value, high volume goods than for higher value densities.<br />
This is exemplified using results from the 1996/7 study, for two contrasting commodities.<br />
Document2<br />
27 May 2004<br />
53