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Network effects and total economic impact in transport appraisal

Author

Listed:
  • Laird, James J.
  • Nellthorp, John
  • Mackie, Peter J.

Abstract

It is sometimes claimed that transport infrastructure projects have network effects, which are not taken into account in the appraisal of these projects. This paper reviews the concept of network effects, relates this to transport appraisal practice, and links to the concept of 'total economic impact'. The limitations of transport modelling and appraisal in estimating total economic impact are reviewed. Good quality appraisals should be capable of picking up relevant network effects in the transport market, but the state of the art remains limited on the linkages between transport and the wider economy.

Suggested Citation

  • Laird, James J. & Nellthorp, John & Mackie, Peter J., 2005. "Network effects and total economic impact in transport appraisal," Transport Policy, Elsevier, vol. 12(6), pages 537-544, November.
  • Handle: RePEc:eee:trapol:v:12:y:2005:i:6:p:537-544
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    References listed on IDEAS

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    1. Winston, Clifford, 1985. "Conceptual Development in the Economics of Transportation: An Interpretive Survey," Journal of Economic Literature, American Economic Association, vol. 23(1), pages 57-94, March.
    2. van Exel, Job & Rienstra, Sytze & Gommers, Michael & Pearman, Alan & Tsamboulas, Dimitrios, 2002. "EU involvement in TEN development: network effects and European value added," Transport Policy, Elsevier, vol. 9(4), pages 299-311, October.
    3. Christopher Mayer & Todd Sinai, 2003. "Network Effects, Congestion Externalities, and Air Traffic Delays: Or Why Not All Delays Are Evil," American Economic Review, American Economic Association, vol. 93(4), pages 1194-1215, September.
    4. Jara-Díaz, Sergio R. & Basso, Leonardo J., 2003. "Transport cost functions, network expansion and economies of scope," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(4), pages 271-288, July.
    5. Johannes Brocker & d’Artis Kancs, 2001. "Methodology for the Assessment of Spatial Economic Impacts of Transport Projects and Policies," EERI Research Paper Series EERI_RP_2001_03, Economics and Econometrics Research Institute (EERI), Brussels.
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    Cited by:

    1. Peter Mackie & Daniel Graham & James Laird, 2011. "The Direct and Wider Impacts of Transport Projects: A Review," Chapters,in: A Handbook of Transport Economics, chapter 21 Edward Elgar Publishing.
    2. Concepción Román, 2008. "Competencia intermodal en el corredor Madrid-Zaragoza-Barcelona ante la introducción del tren de alta velocidad," Economic Reports 11-08, FEDEA.
    3. Tovar, Beatriz & Hernández, Rubén & Rodríguez-Déniz, Héctor, 2015. "Container port competitiveness and connectivity: The Canary Islands main ports case," Transport Policy, Elsevier, vol. 38(C), pages 40-51.
    4. Tsamboulas, Dimitrios A., 2007. "A tool for prioritizing multinational transport infrastructure investments," Transport Policy, Elsevier, vol. 14(1), pages 11-26, January.
    5. Riccardo Crescenzi & Andrés Rodríguez-Pose, 2012. "Infrastructure and regional growth in the European Union," Papers in Regional Science, Wiley Blackwell, vol. 91(3), pages 487-513, August.
    6. Cárcamo-Díaz, Rodrigo, 2007. "Coordination of public expenditure in transport infrastructure: analysis and policy perspectives for Latin America," Macroeconomía del Desarrollo 56, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    7. Vickerman, Roger, 2008. "Transit investment and economic development," Research in Transportation Economics, Elsevier, vol. 23(1), pages 107-115, January.

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