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This study explores the characteristics of high-speed rail (HSR) and air transportation networks in China based on the weighted complex network approach. Previous related studies have largely implemented unweighted (binary) network analysis, or have constructed a weighted network, limited by unweighted centrality measures. This study applies weighted centrality measures (mean association [MA], triangle betweenness centrality [TBC], and weighted harmonic centrality [WHC]) to represent traffic dynamics in HSR and air transportation weighted networks, where nodes represent cities and links represent passenger traffic. The spatial distribution of centrality results is visualized by using ArcGIS 10.2. Moreover, we analyze the network robustness of HSR, air transportation, and multimodal networks by measuring weighted efficiency (WE) subjected to the highest weighted centrality node attacks. In the HSR network, centrality results show that cities with a higher MA are concentrated in the Yangtze River Delta and the Pearl River Delta; cities with a higher TBC are mostly provincial capitals or regional centers; and cities with a higher WHC are grouped in eastern and central regions. Furthermore, spatial differentiation of centrality results is found between HSR and air transportation networks. There is a little bit of difference in eastern cities; cities in the central region have complementary roles in HSR and air transportation networks, but air transport is still dominant in western cities. The robustness analysis results show that the multimodal network, which includes both airports and high-speed rail stations, has the best connectivity and shows robustness.

This chapter reviews three main issues in the interactions between air transport and high-speed rail (HSR) in China, namely the interaction between low-cost carriers (LCCs) and HSR, HSR speed effect on airlines, and airline–HSR integration. Studies on these three aspects of airline–HSR interactions have yet been well reviewed, and our chapter aims to fill in this gap. In this chapter, we comprehensively survey literature on the topics, especially studies on Chinese markets that have recently witnessed major HSR developments (and have planned further large-scale HSR expansion in the coming years). Our review shows that, first, compared to full-service carriers, LCCs face fiercer competition from HSR. However, the expansion of HSR network in China can be better coordinated with LCC development. Second, HSR speed exerts two countervailing effects on airline demand and price (the “travel-time” effect and “safety” effect, respectively). Specifically, an HSR speed reduction can have a positive effect on airlines due to longer HSR travel time, but a negative effect on airlines due to improved perception on HSR safety. Third, airline–HSR integration can be implemented through cooperation between airlines and HSR operators and through co-location of airports and HSR stations and can have important implications for intermodal transport and social welfare.

This chapter provides a critical discussion of air to rail mode substitution. Environmental impacts, intermodal competition and integration are considered, examining advantages and disadvantages as well as opportunities and constraints.

Both operation and life-cycle analysis perspectives show that high-speed rail (HSR) is much ‘greener’ than air transport (per seat-km or per passenger-km) provided that the former achieves high load factors and the latter lower load factors and that freed runway capacity is not reused. HSR travel time is its main competitive advantage against air transport, and a 600-km flight is arguably the current limit for robust intermodal effects.

The potential for air–HSR integration at the airport relies on various service, business and technical constraints. Even when it is successful, its environmental benefit appears to be marginal, if not negative, if airport capacity is reused for longer flights. In the current context, such integration appears more like a business opportunity for airlines, airports and train operators rather than a sustainable option. Yet the environmental benefit of integration may be larger within potential integrated transport policies.

In this chapter, we will review the history, deregulation, policy reforms, and airline consolidations and mergers of the Chinese airline industry. The measurement of airline competition in China’s domestic market will also be discussed. Although air deregulation is still ongoing, the Chinese airline industry has become a market-driven business subject to some mild regulations. Then, we will review the impressive development of the high-speed rail (HSR) network in China and its effects on the domestic civil aviation market. In general, previous studies have found that the introduction of HSR services has a significant negative impact on airfare and air travel demand in China. The rapidly expanding network of HSR has important policy implications for Chinese airlines.

High-speed rail, as a distinct subset of rail systems, has been in operation since 1964, first introduced in Japan and subsequently adopted widely in heavily populated countries across Europe and Asia with plans in place to extend to America and Australia. Development of technologies has been continuous such that maximum speed in service operation has safely increased from 210 to 350 km/h with further advances to come in the next decade. Its economic and social effect through reducing journey time between cities while also offering very high capacity, reliability and safety with a low-carbon footprint means it is no longer considered by sponsoring governments on its merits as a transport system but rather as part of a wider set of strategic policies around housing settlement and employment. Analysis techniques continue to be developed to estimate true benefits alongside construction, environmental impact and operational costs.

Rede Alta Velocidade, SA (RAVE), the state-owned company responsible for planning and developing a major high-speed rail project in Portugal, must persuade both public officials and lenders that the project is worth undertaking. It must also make a recommendation on the appropriate organizational form for the enterprise. Specifically, it must determine the role of the Portuguese government in financing and operating the high-speed rail network, with options ranging from full development and management of the project by the public sector to completely private development and management. Lying in between these two polar cases were a variety of hybrid models, often referred to as public-private partnerships (PPPs). Using data in the case, students have the opportunity to perform a benefit-cost analysis of the project. They also must think carefully about the optimal role of the government in a major new infrastructure project.

After analyzing and discussing the case, students will be able to:

• Understand the nature of a global public good

• Perform a back-of-the-envelope benefit-cost analysis of polio eradication

• Discuss the appropriate strategy for eradicating an infectious disease

• Apply game theory to analyzing which countries would be likely to contribute funds toward global polio eradication

• Discuss the role of private organizations in the provision of global public goods

Understand the nature of a global public good

Perform a back-of-the-envelope benefit-cost analysis of polio eradication

Discuss the appropriate strategy for eradicating an infectious disease

Apply game theory to analyzing which countries would be likely to contribute funds toward global polio eradication

Discuss the role of private organizations in the provision of global public goods

The purpose of this paper is to describe, as a case study, the recent developments in high‐speed rail (HSR) technological development and economic and business development in China.

The authors use a descriptive case study design examining the factors behind the importation of foreign HSR technology and its development within the Chinese context. Various secondary sourced data are used to build the case that educational development in transportation technologies and strategic focus at the national level have created the ability to pursue the development and creation of a national strategic competency in HSR technology for the Chinese.

The authors find that a major factor behind HSR development in China appears to be the result of a need for the Chinese Government to build the competencies of strategic technologies at the national level. Given present usage levels of HSR, the internal development of HSR systems is not justified by the economic rationales of cheaper and more efficient transportation for the Chinese. However, the case does point out the importance of technological leapfrogging (or “hopping” over the competition, to use the analogy in the title). It is apparent in the case that Chinese engineering has advanced in such a way that it is not inconceivable that China may lead advanced technological state‐of‐the‐art designs in the near future. This building of national core competencies appears to be related to the increase in world‐class educational efforts. As such, the authors argue that the Chinese efforts in HSR are now described by fact‐based education and derivational innovation practices as illustrated in the staged model of innovation by Johnson and Weiss.

The case study is one of the first published in the academic management literature. It demonstrates the process of development of HSR in China and provides preliminary evidence of the importance of the educational and innovation practices in China on the development of an indigenous technological industry in the country.