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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

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