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

• Published in: Case studies on transport policy 2024-09, Vol.17, p.101250, Article 101250
• Main Authors: Gildemir Ferreira da Silva, Francisco, Kelli de Oliveira, Leise, Herszon Meira, Leonardo, Kopperschmidt de Oliveira, Isabela
• Format: Article
• Language: English
• Subjects: Economic welfare; Freight transport; Logarithmic sum; Travel time measurement
• ISSN: 2213-624X
• DOI: 10.1016/j.cstp.2024.101250

•Regional Heterogeneity: The study unveils significant disparities in the value of travel time (VTT) and welfare outcomes among Brazilian states, emphasizing the imperative for tailored region-specific policy considerations in the freight transport sector.•Mode Choice and Infrastructure: Emphasizing the pivotal role of infrastructure and modal diversity, particularly in states with elevated VTT, the study underscores the influence of these factors on transport choices and overall well-being of freight transport companies.•Consumer Surplus Implications: The research reveals varying impacts on consumer surplus resulting from changes in transport costs and delivery reliability. These findings have crucial implications for policymakers aiming to enhance economic welfare through targeted interventions.•Policy Implications: The study advocates for regional integration in Brazilian logistics policy, emphasizing the significance of infrastructure development and modal diversification. Specific states, such as Amazonia, Acre, Roraima, and Amapá, are identified as key targets for policy interventions with the potential for substantial gains in consumer surplus and economic welfare.•Sustainable Product Flow: By focusing on the enhancement of distribution systems for vital products like soybeans, the study proposes strategies to improve sustainability and competitiveness in the international market. 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