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SCGE modelling in cost-benefit analysis: The Dutch experience

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  • Koopmans, Carl
  • Oosterhaven, Jan

Abstract

Spatial computable general equilibrium (SCGE) models offer opportunities for computing wider economic effects in cost-benefit analysis (CBA) in a theoretically satisfactory way. This is important for the correct estimation of additional economic benefits and international relocation impacts. In the Netherlands, this potential has only been reached partly. Many different types of models are actually used, none of which yet covers all relevant markets. In CBAs carried out in recent years, ad hoc methods were used more often than models, let alone SCGE models. Moreover, the usual presentation of the model outcomes appears as a [`]black box' to policy makers. There is much work to be done, in extending SCGE models to strengthen their empirical basis, and in improving the presentation of the outcomes.

Suggested Citation

  • Koopmans, Carl & Oosterhaven, Jan, 2011. "SCGE modelling in cost-benefit analysis: The Dutch experience," Research in Transportation Economics, Elsevier, vol. 31(1), pages 29-36.
  • Handle: RePEc:eee:retrec:v:31:y:2011:i:1:p:29-36
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    Cited by:

    1. Robson, Edward N. & Wijayaratna, Kasun P. & Dixit, Vinayak V., 2018. "A review of computable general equilibrium models for transport and their applications in appraisal," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 31-53.
    2. Knudsen, M.Aa. & Rich, J., 2013. "Ex post socio-economic assessment of the Oresund Bridge," Transport Policy, Elsevier, vol. 27(C), pages 53-65.
    3. Simmonds, David & Feldman, Olga, 2011. "Alternative approaches to spatial modelling," Research in Transportation Economics, Elsevier, vol. 31(1), pages 2-11.
    4. Kim, Euijune & Hewings, Geoffrey J.D. & Amir, Hidayat, 2017. "Economic evaluation of transportation projects: An application of Financial Computable General Equilibrium model," Research in Transportation Economics, Elsevier, vol. 61(C), pages 44-55.
    5. Knaap, Thijs & Oosterhaven, Jan, 2011. "Measuring the welfare effects of infrastructure: A simple spatial equilibrium evaluation of Dutch railway proposals," Research in Transportation Economics, Elsevier, vol. 31(1), pages 19-28.

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