An ex-post CBA for the Stockholm Metro
AbstractThis paper performs an ex-post cost-benefit analysis (CBA) of the Metro system in Stockholm built in the 1950s. We find that the Metro was socially beneficial and that the largest benefit of the Metro is its capacity, making it possible for many people to travel to and from the city center. We also assess the significance of the wider economic impacts due to labor market distortions and the land-use effects in the case of the Stockholm Metro. The wider economic impacts increase the consumer surplus with 48%, and the yearly income in the county with 3.7%. A land-use model is used to analyze how the land-use has been influenced by the Metro over the years 1956-2006. The land-use model indicates that the historical centralized planning of housing along transit corridors has developed the region into a more dispersed region than if it had been planned according to the present inhabitants’ preferences. Moreover, we find that the land-use impacts from the investment itself seem to be small, but the land-use impacts from planning accompanying the decision to build the metro have been substantial.
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Bibliographic InfoPaper provided by CTS - Centre for Transport Studies Stockholm (KTH and VTI) in its series Working papers in Transport Economics with number 2013:34.
Length: 27 pages
Date of creation: 20 Nov 2013
Date of revision:
Contact details of provider:
Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Web page: http://www.kth.se/abe/om_skolan/organisation/centra/cts
Ex-post evaluation; Cost-benefit analysis; CBA; Appraisal; Land-Use modeling; Metro; Wider economic impacts; Rail investments;
Find related papers by JEL classification:
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
- R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-11-29 (Agricultural Economics)
- NEP-ALL-2013-11-29 (All new papers)
- NEP-TRE-2013-11-29 (Transport Economics)
- NEP-URE-2013-11-29 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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CEP Discussion Papers
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