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Modelling the Economy, Transport and Environment Triangle, with an Application to Dutch Maglev Projects

In: Road Pricing, the Economy and the Environment

Author

Listed:
  • Jan Oosterhaven

    (University of Groningen)

  • J. Paul Elhorst

    (University of Groningen)

Abstract

This chapter discusses modelling the ETE triangle from the perspective of the welfare consequences of local and regional policy measures. It argues that the interaction between the economy and the transport system needs to be modelled using sectors, household types, transport modes and spatial zones. For urban agglomerations, using a land-use/transportation interaction type of model should be weighed against using a spatial computable general equilibrium type of model. For interregional applications, a spatial equilibrium approach is superior because it enables the incorporation of economies of scale, substitution between inputs and heterogeneity of outputs. Furthermore, it is argued that — at the local and regional level — environmental externalities may be modelled without taking account of feedback effects on the economy and the transport systems. The modelling philosophy is applied to four Dutch magnetic levitation rail proposals showing that the location and trajectory of new transport infrastructures have an important impact on the size and mix of its direct transport effects, indirect economic effects and external environmental effects.

Suggested Citation

  • Jan Oosterhaven & J. Paul Elhorst, 2008. "Modelling the Economy, Transport and Environment Triangle, with an Application to Dutch Maglev Projects," Advances in Spatial Science, in: Chris Jensen-Butler & Birgitte Sloth & Morten Marott Larsen & Bjarne Madsen & Otto Anker Nielsen (ed.), Road Pricing, the Economy and the Environment, chapter 11, pages 207-227, Springer.
    • Handle: RePEc:spr:adspcp:978-3-540-77150-0_11
    DOI: 10.1007/978-3-540-77150-0_11
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    Cited by:

    1. Roberts, Mark & Deichmann, Uwe & Fingleton, Bernard & Shi, Tuo, 2010. "On the road to prosperity ? The economic geography of China's national expressway network," Policy Research Working Paper Series 5479, The World Bank.

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