Analyzing the welfare economic of freight transport companies with disaggregated data for Brazilian states

Abstract

Efficient use of transport systems can increase well-being and ensure benefits for society. Reducing the costs involved in transport operations can occur through management, investments, or using more efficient infrastructures. Well-being gains are weighted based on economic theory, particularly with the classical welfare function that measures consumer surplus gains. Therefore, this article aims to analyse the economic well-being of freight transport companies with disaggregated data for Brazilian states. Data from a stated preference survey were used for the entire Brazilian territory. We estimate logit models to determine the value of travel time, and a logsum measure was used to calculate differences in well-being for freight transport companies. The results show the heterogeneity of Brazilian shippers when choosing the mode of mode of transport for freight transport companies. Research deepens the investigations underway in Brazil, disaggregating the analysis at the state level and simulating different scenarios to describe well-being and the value of travel time. The results show significant differences in the choice of road modes compared to their competing modes by region in Brazil. The findings indicate that states may have greater marginal benefits in well-being with changes in transport costs, transport time, delivery reliability, and flexibility.