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Assessing economic benefits of transport projects using an integrated transport-CGE approach

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  • Shahirari, Siroos
  • Rashidi, Taha
  • Dixit, Vinayak
  • Robson, Edward

Abstract

Transport planners and decision-makers require reliable appraisal tools to assess the value of potential development proposals in terms of societal and economic benefits. The well-known cost benefit analysis approach as a commonly used appraisal tool imposes limitations in holistically quantifying the consequences associated with projects across different markets in the economy. The computable general equilibrium framework, as an alternative, can address some of the limitations of CBA by accounting for several properties of the supply and demand of some interacting markets by borrowing concepts from microeconomics for economic behaviour of agents. However, even with consideration of the impacts of a project on the entire economy, behavioural aspects of the transport system are typically neglected. Such aspects are crucial for transport planning purposes as well as the entire economy, so as to appropriately reflect essential properties of the transport system. Trip generation models, are the cornerstone of travel demand modelling, which are aimed to predict the future demand for mobility. In this paper, a trip generation model is integrated into a CGE model to extend the capacity of the CGE model in truly reflecting the attributes of the system and the interacting agents. The developed integrated model is used to assess the consequences associated with changes in attributes of agents and the economy on the transport system as one market among other markets. Further, a consistent data generation platform is proposed where all required data is generated using aggregate data which should be readily available.

Suggested Citation

  • Shahirari, Siroos & Rashidi, Taha & Dixit, Vinayak & Robson, Edward, 2021. "Assessing economic benefits of transport projects using an integrated transport-CGE approach," Research in Transportation Economics, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:retrec:v:90:y:2021:i:c:s0739885921000871
    DOI: 10.1016/j.retrec.2021.101115
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