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Urban agglomeration benefits from public transit improvements: Extending and implementing the Venables model

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  • Hazledine, Tim
  • Donovan, Stuart
  • Mak, Christine

Abstract

In the Venables model, commuting costs determine the size of the Central Business District (CBD) workforce and thus the productivity and wage premium generated by agglomeration economies in the CBD. Improvements in public transit modes increase numbers willing to commute to work in the CBD, and generate additional productivity gains. The resulting efficiencies can greatly exceed estimates of direct travel time savings from the PT innovation. The Venables model is operationalised and extended, and applied illustratively to two actual PT innovations in Auckland: improved bus lanes, and improved rail service.

Suggested Citation

  • Hazledine, Tim & Donovan, Stuart & Mak, Christine, 2017. "Urban agglomeration benefits from public transit improvements: Extending and implementing the Venables model," Research in Transportation Economics, Elsevier, vol. 66(C), pages 36-45.
    • Handle: RePEc:eee:retrec:v:66:y:2017:i:c:p:36-45
    DOI: 10.1016/j.retrec.2017.09.002
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    References listed on IDEAS

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    1. Nicholas Crafts, 2009. "Transport infrastructure investment: implications for growth and productivity," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 25(3), pages 327-343, Autumn.
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    Cited by:

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    2. Yang, Xing-Qi & Huang, Hai-Jun, 2022. "Effects of HSR station location on urban spatial structure: A spatial equilibrium analysis for a two-city system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 166(C).
    3. Nir Sharav & Yoram Shiftan, 2021. "Optimal Urban Transit Investment Model and Its Application," Sustainability, MDPI, vol. 13(16), pages 1-29, August.

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    More about this item

    Keywords

    Venables model; Commuting; Commuting costs; Agglomeration economies; Urban wage premia; Public transit; Public transit innovations; Public transport; Public transport innovations;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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