Analysing Dynamic Demand for Tomato and Rice Trnasport from Booshehr Province

  The objective of this study is to analysis demand for tomato and rice transportation from Booshehr province to Tehran, Isfahan, Fars and Khoozestan provinces. To get the purpose, dynamic demand function was estimated. Impact of increased transportation price on welfare of agents demanding transportation was evaluated using two price increment scenarios of 15 and 25 percent. Panel data was applied for period of 1997-2007.   The findings showed that tomato and rice demand is elastic with respect to price in both of short and long run. It was also found that in the case of tomato, welfare loss is more considerable as compared to that of the rice. Welfare loss of transportation price increase occurred for Tehran is higher than other provinces due to long distance of Tehran from Booshehr comparing to other provinces. Improving air transport system and investment in transportation infrastructures as well as investigation to find optimal scale of load transportation was presented as policy suggestions.     Jel Classification: Q33, Q11, R43, R41