Impact of subsidy strategies on the optimization of container intermodal transport route selection

Abstract

To achieve carbon neutrality goal, addressing environmental impact of the transportation sector is crucial, and intermodal transport may be a good option. Therefore, government is trying to promote the development of intermodal transport by providing subsidies to lower the costs of clean transport modes. This paper primarily discusses how to establish uniform interprovincial subsidy standards for effective emission reduction policies following the government’s proposal of various subsidy policies, and explores how carriers can select the optimal routes under these policies. A bi-level model is established, with the upper-level model being the decision-making of subsidy policies to achieve the highest emission reduction benefits, while the lower-level one being the optimization of intermodal transport routes. Transportation demand in the Yangtze River Delta region, covering short and medium to long distances to Yangshan Port, is used as case studies to investigate the issue of intermodal transport route selection under four subsidy schemes. In both cases, subsidies for railway transport are used, which increases the proportion of railway in the optimal transport route and reduced carbon emissions. However, the two cases employ different types of subsidies, and the choice of subsidy type might be influenced by the varying distances of transport. It also discusses the impact of changes in waterway freight rates and carbon taxes on the scheme and route selection under these four subsidy schemes, aiding the government and carriers in better understanding the influence of subsidy policies on route selection and providing support for carbon emission reduction decisions.