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Building new roads really does create extra traffic: a response to Prakash et al

  • Phil Goodwin
  • Robert Noland

A recent article by Prakash et al. (Applied Economics, 33, 1579-85, 2001) asserted that induced travel effects do not occur. This paper is criticized on several grounds. It disregards much of the recent work in this area that has empirically estimated induced travel relationships. The models specified are inappropriate for properly addressing this question, both in their use of road expenditure data (based on a misunderstanding of how this may relate to traffic growth) and specification of a model that does not account for other variables that generally have a large effect on traffic growth (notably population and income growth). The evidence in the literature is summarized and an analysis of UK road expenditure data shows that expenditure is not a good measure of actual road capacity that is built.

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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 35 (2003)
Issue (Month): 13 ()
Pages: 1451-1457

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Handle: RePEc:taf:applec:v:35:y:2003:i:13:p:1451-1457
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  1. Daniel J. Graham & Stephen Glaister, 2002. "The Demand for Automobile Fuel: A Survey of Elasticities," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 36(1), pages 1-25, January.
  2. Robert Noland & William Cowart, 2000. "Analysis of Metropolitan Highway Capacity and the growth in vehicle miles of travel," Transportation, Springer, vol. 27(4), pages 363-390, December.
  3. A. B. Prakash & E. H. D'A. Oliver & K. Balcombe, 2001. "Does building new roads really create extra traffic? Some new evidence," Applied Economics, Taylor & Francis Journals, vol. 33(12), pages 1579-1585.
  4. Robert Cervero & Mark Hansen, 2002. "Induced Travel Demand and Induced Road Investment: A Simultaneous Equation Analysis," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 36(3), pages 469-490, September.
  5. Noland, Robert B., 2001. "Relationships between highway capacity and induced vehicle travel," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(1), pages 47-72, January.
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