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Does building new roads really create extra traffic? Some new evidence

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  • A. B. Prakash
  • E. H. D'A. Oliver
  • K. Balcombe

Abstract

The debate that expenditure on new or existing roads induces more traffic has intensified during the 1990s in most developed countries. In this paper the controversy is readdressed from a UK perspective, using the method of Granger noncausality. Results indicate that aggregate expenditure on new and existing roads does not induce additional traffic in the Granger sense. Conversely, the results found that traffic Granger causes road expenditure. The importance of these results, along with issues concerning the selection and specification of dynamic models, are discussed.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 33 (2001)
Issue (Month): 12 ()
Pages: 1579-1585

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Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1579-1585

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Cited by:
  1. González, Rosa Marina & Marrero, Gustavo A., 2012. "Induced road traffic in Spanish regions: A dynamic panel data model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(3), pages 435-445.
  2. Phil Goodwin & Robert Noland, 2003. "Building new roads really does create extra traffic: a response to Prakash et al," Applied Economics, Taylor & Francis Journals, vol. 35(13), pages 1451-1457.
  3. Devine, Jon & Plastina, Alejandro S. & Theriault, Veronique, 2012. "Cotton Market Integration across Countries, among Qualities, and through Time," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124962, Agricultural and Applied Economics Association.
  4. Santos, Georgina & Behrendt, Hannah & Teytelboym, Alexander, 2010. "Part II: Policy instruments for sustainable road transport," Research in Transportation Economics, Elsevier, vol. 28(1), pages 46-91.
  5. Concas, Sisinnio, 2012. "Highway capital expenditures and induced vehicle travel," MPRA Paper 40757, University Library of Munich, Germany, revised 12 Aug 2012.

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