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China Railway Freight Price Reform Analysis: Based on Price Elasticity of Freight Demand

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IEIS2019

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Abstract

Railway freight demand is a part of the railway freight market, so the understanding of this demand is the basis for the market-oriented reform of railway freight prices. The price elasticity of railway freight demand is one of the important tools to understand this demand. Therefore, based on a more reasonable freight rate calculation method and commodity demand indicator, this paper estimates the price elasticity of railway freight demand for some goods according to the commodities category of railway freight rate rules. Estimates show that the freight demand for coal and coke is inelastic while the non-metallic ore, cement and grain is elastic, which is mainly caused by the difference in transportation distance. Based on the estimated elasticity, this paper provides suggestions for the market-oriented reform of railway freight rate.

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Author information

Authors and Affiliations

  1. School of Economics and Management, Beijing Jiaotong University, Beijing, China

    Bingsong Zhang & Zhaoxia Kang

Authors
  1. Bingsong Zhang
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  2. Zhaoxia Kang
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Corresponding author

Correspondence to Bingsong Zhang .

Editor information

Editors and Affiliations

  1. School of Economics and Management, Beijing Jiaotong University, Beijing, Beijing, China

    Menggang Li

  2. Logistics, Business and Public Policy, University of Maryland, Baltimore, MD, USA

    Martin Dresner

  3. School of Economics and Management, Beijing Jiaotong University, Beijing, Beijing, China

    Runtong Zhang

  4. School of Economics and Management, Beijing Jiaotong University, Beijing, Beijing, China

    Guowei Hua

  5. School of Economics and Management, Beijing Jiaotong University, Beijing, Beijing, China

    Xiaopu Shang

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Zhang, B., Kang, Z. (2020). China Railway Freight Price Reform Analysis: Based on Price Elasticity of Freight Demand. In: Li, M., Dresner, M., Zhang, R., Hua, G., Shang, X. (eds) IEIS2019. Springer, Singapore. https://doi.org/10.1007/978-981-15-5660-9_43

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