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Evaluating the local economic impacts of transport projects and programmes (with an application to UK Local Major schemes)

Author

Listed:
  • Donnat, Helene
  • Gomez-Hernandez, Luz Yadira
  • Gonzalez Pampillon, Nicolas
  • Nunez Chaim, Gonzalo Ignacio
  • Overman, Henry George

Abstract

We consider how existing distance-based and accessibility-based evaluation methodologies can be adapted to measure the local economic impact of small additions to the transport network. We use these methodologies to evaluate the impact of 94 UK Local Major schemes (partly) funded by the Department for Transport (DfT) between 2007 and 2018. For public transport schemes, the results suggest some impacts on local economic activity, with a 1.6% increase in the number of businesses. The effects are localised, concentrated in areas within 1 km of schemes. For road schemes, we do not find a measurable, statistically significant impact. We discuss the limitations of these methods and issues arising in their application and provide recommendations for future evaluations.

Suggested Citation

  • Donnat, Helene & Gomez-Hernandez, Luz Yadira & Gonzalez Pampillon, Nicolas & Nunez Chaim, Gonzalo Ignacio & Overman, Henry George, 2025. "Evaluating the local economic impacts of transport projects and programmes (with an application to UK Local Major schemes)," LSE Research Online Documents on Economics 141596, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:141596
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    Keywords

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    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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