A game theoretic approach to sustainable freight transportation: competition between green, non-green and semi-green transportation networks under government sustainable policies.

Isfahan (Iran); Tehran (Iran)

Sustainable development in freight transportation networks is becoming increasingly important due to its significant role in the economic development process and its impacts on the environment. Governments usually improve sustainability dimensions in freight transportation by imposing taxes on transportation networks. Therefore, they should extend their knowledge of interactions between sustainability dimensions and how their interventions affect the sustainability of the transportation sector. In this regard, we analyze duopoly competition in three freight transportation networks in the context of government intervention. These networks include green, semi-green, and non-green modes, where the green and semi-green networks are regarded as environmentally sustainable networks. In this paper, two bi-level mathematical models are proposed, in which a government, as a Stackelberg leader, levies fuel consumption taxes based on environmental and economic concerns. A Nash game was built at the lower level to examine price competitiveness in the transportation market. A case study was conducted in the Tehran-Esfahan freight transportation networks (Iran). Due to the complexity of the bi-level models, the Karush–Kuhn–Tucker approach was adopted to unify the models. Finally, the relevant calculations were performed based on actual information. The results of the problems in the case study showed the economic and environmental dimensions are contradictory and that the government's minimization of economic risks aids in ensuring environmental sustainability. Also, improving energy efficiency in transportation networks can have negative environmental consequences. However, when accompanied by government intervention, improving energy efficiency effectively reduces the fuel consumption rate. Moreover, government support will reduce total fuel consumption by reducing green vehicle fuel taxes. [ABSTRACT FROM AUTHOR]

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