Advanced Search
MyIDEAS: Login to save this paper or follow this series

Road Transport Investment Projects and Additional Economic Benefits

Contents:

Author Info

  • Torben Holvad

    ()

  • John Preston

    ()

Registered author(s):

    Abstract

    The paper examines the linkages between transport and the economy with particular focus on the basis for additionality of wider economic benefits from road transport infrastructure improvements. A major weakness of current appraisal practice of road transport infrastructure projects is its basis on partial equilibrium analysis. The partial equilibrium approach implies that the linkage from changes in the transport market is ignored creating the scope for a less than comprehensive consideration of all benefits and costs. The importance of ignoring other markets in transport appraisal has been subject to much analysis in the available literature: A key research question is whether such wider economic impacts are additional to the time and cost savings generated from transport policy interventions. The key condition under which wider economic effects are additional to a standard CBA is the extent to which the economy departs from the economic model of perfect competition. If imperfect competition dominates then it is possible that the wider economic effects can be additional to the CBA result. The context in which perfect competition is not a valid assumption involves imperfectly competitive output and input markets and/ or existence of subsidies and taxes. Furthermore, external costs such as air pollution or congestion from the transport sector as well as from economic activities across the different sectors can influence the CBA result. Computable General Equilibrium (CGE) models represent a possible solution to the problem of partial equilibrium analysis. The paper will review available theoretical and empirical evidence of how road transport improvements are linked to the wider economy including the possibility for addditionality. It will re-assess the role of Computable General Equilibrium models in measuring these additional benefits. Finally, it will consider the feasibility of examining the additional benefits that Britain’s motorway network has brought to the national economy.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa05/papers/522.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p522.

    as in new window
    Length:
    Date of creation: Aug 2005
    Date of revision:
    Handle: RePEc:wiw:wiwrsa:ersa05p522

    Contact details of provider:
    Postal: Welthandelsplatz 1, 1020 Vienna, Austria
    Web page: http://www.ersa.org

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    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.:
    as in new window
    1. E.T. Verhoef & P. Nijkamp & P. Rietveld & T.R. Lakshmanan, 1997. "Benefits and Costs of Transport," Tinbergen Institute Discussion Papers, Tinbergen Institute 97-084/3, Tinbergen Institute.
    2. David Aschauer, 1988. "Is public expenditure productive?," Staff Memoranda, Federal Reserve Bank of Chicago 88-7, Federal Reserve Bank of Chicago.
    3. Boarnet, Marlon G. & Haughwout, Andrew F., 2000. "Do Highways Matter? Evidence and Policy Implications of Highways' Influence on Metropolitan Development," University of California Transportation Center, Working Papers qt5rn9w6bz, University of California Transportation Center.
    4. Crafts, Nick, 1996. "'Post-neoclassical Endogenous Growth Theory': What Are Its Policy Implications?," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 12(2), pages 30-47, Summer.
    5. Jan Rouwendal, 2002. "Indirect Welfare Effects of Price Changes and Cost-Benefit Analysis," Tinbergen Institute Discussion Papers, Tinbergen Institute 02-011/3, Tinbergen Institute.
    6. Tony Venables, 2004. "Evaluating urban transport improvements: cost benefit analysis in the presence of agglomeration and income taxation," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 2205, London School of Economics and Political Science, LSE Library.
    7. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 32(3), pages 1176-96, September.
    8. Alan Manning, 2003. "The real thin theory: monopsony in modern labour markets," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 20050, London School of Economics and Political Science, LSE Library.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Kanemoto, Yoshitsugu, 2013. "Evaluating benefits of transportation in models of new economic geography," Economics of Transportation, Elsevier, Elsevier, vol. 2(2), pages 53-62.
    2. Gwilliam, Ken, 2008. "A review of issues in transit economics," Research in Transportation Economics, Elsevier, Elsevier, vol. 23(1), pages 4-22, January.
    3. Louw, Erik & Leijten, Martijn & Meijers, Evert, 2013. "Changes subsequent to infrastructure investments: Forecasts, expectations and ex-post situation," Transport Policy, Elsevier, vol. 29(C), pages 107-117.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa05p522. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.