IDEAS home Printed from https://ideas.repec.org/a/eee/jotrge/v24y2012icp292-305.html
   My bibliography  Save this article

Assessing the wider economy impacts of transport infrastructure investment with an illustrative application to the North-West Rail Link project in Sydney, Australia

Author

Listed:
  • Hensher, David A.
  • Truong, Truong P.
  • Mulley, Corinne
  • Ellison, Richard

Abstract

This paper identifies the employment agglomeration impact of transport investments through a measure of change in effective employment density, using new empirical estimates of the elasticity of productivity with respect to effective density in order to calculate the uplift in benefits (or impact) from this key wider economy impact. The approach combines the behavioural richness of an integrated transport and location choice modelling system (TRESIS) and its outputs to a spatial computable general equilibrium model (SGEM), which uses data at a more aggregate level to compute the additional impacts of transport infrastructure change on the wider economy. This has allowed the development of an integrated transport–location–economy-wide model system known as TRESIS–SGEM. The model system is applied to the introduction of the North-West Rail Link project in Sydney, Australia to illustrate the capability of TRESIS–SGEM, identifying a 17.6% markup over the conventional transport user benefit.

Suggested Citation

  • Hensher, David A. & Truong, Truong P. & Mulley, Corinne & Ellison, Richard, 2012. "Assessing the wider economy impacts of transport infrastructure investment with an illustrative application to the North-West Rail Link project in Sydney, Australia," Journal of Transport Geography, Elsevier, vol. 24(C), pages 292-305.
    • Handle: RePEc:eee:jotrge:v:24:y:2012:i:c:p:292-305
    DOI: 10.1016/j.jtrangeo.2012.03.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0966692312000725
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jtrangeo.2012.03.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 1077-1106.
    2. Randall W. Eberts & Daniel P. McMillen, 1999. "Agglomeration Economies and Urban Public Infrastructure," Book chapters authored by Upjohn Institute researchers, in: Paul Cheshire & Edwin S. Mills (ed.),handbook or Regional and Urban Economics, volume 3, pages 1455-1495, W.E. Upjohn Institute for Employment Research.
    3. Daniel J. Graham, 2007. "Agglomeration Economies and Transport Investment," OECD/ITF Joint Transport Research Centre Discussion Papers 2007/11, OECD Publishing.
    4. David C. Maré & Daniel J. Graham, 2009. "Agglomeration Elasticities in New Zealand," Working Papers 09_06, Motu Economic and Public Policy Research.
    5. Anthony J. Venables, 2007. "Evaluating Urban Transport Improvements: Cost-Benefit Analysis in the Presence of Agglomeration and Income Taxation," Journal of Transport Economics and Policy, University of Bath, vol. 41(2), pages 173-188, May.
    6. Itf, 2008. "The Wider Economic Benefit of Transport: Macro-, Meso and Micro Transport Planning and Investment Tools," OECD/ITF Joint Transport Research Centre Discussion Papers 2008/6, OECD Publishing.
    7. Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117, Elsevier.
    8. Daniel J. Graham, 2007. "Agglomeration, Productivity and Transport Investment," Journal of Transport Economics and Policy, University of Bath, vol. 41(3), pages 317-343, September.
    9. Truong, Truong P. & Hensher, David A., 2012. "Linking discrete choice to continuous demand within the framework of a computable general equilibrium model," Transportation Research Part B: Methodological, Elsevier, vol. 46(9), pages 1177-1201.
    10. David Hensher, 2002. "A Systematic Assessment of the Environmental Impacts of Transport Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(1), pages 185-217, June.
    11. Melo, Patricia C. & Graham, Daniel J. & Noland, Robert B., 2009. "A meta-analysis of estimates of urban agglomeration economies," Regional Science and Urban Economics, Elsevier, vol. 39(3), pages 332-342, May.
    12. David Hensher & Tu Ton, 2002. "TRESIS: A transportation, land use and environmental strategy impact simulator for urban areas," Transportation, Springer, vol. 29(4), pages 439-457, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Graham, Daniel J. & Gibbons, Stephen, 2019. "Quantifying Wider Economic Impacts of agglomeration for transport appraisal: Existing evidence and future directions," Economics of Transportation, Elsevier, vol. 19(C), pages 1-1.
    2. Andersson, Matts & Dehlin, Fredrik & Jörgensen, Peter & Pädam, Sirje, 2015. "Wider economic impacts of accessibility: a literature survey," Working papers in Transport Economics 2015:14, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    3. Zhou, You & Zhang, Lingzhu & JF Chiaradia, Alain, 2022. "Estimating wider economic impacts of transport infrastructure Investment: Evidence from accessibility disparity in Hong Kong," Transportation Research Part A: Policy and Practice, Elsevier, vol. 162(C), pages 220-235.
    4. David C. Maré & Daniel J. Graham, 2009. "Agglomeration Elasticities in New Zealand," Working Papers 09_06, Motu Economic and Public Policy Research.
    5. repec:mul:je8794:doi:10.1429/34355:y:2011:i:1:p:125 is not listed on IDEAS
    6. Daniel Graham & Kurt Dender, 2011. "Estimating the agglomeration benefits of transport investments: some tests for stability," Transportation, Springer, vol. 38(3), pages 409-426, May.
    7. Melo, Patricia C. & Graham, Daniel J. & Brage-Ardao, Ruben, 2013. "The productivity of transport infrastructure investment: A meta-analysis of empirical evidence," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 695-706.
    8. Daniel G. Chatman & Robert B. Noland, 2014. "Transit Service, Physical Agglomeration and Productivity in US Metropolitan Areas," Urban Studies, Urban Studies Journal Limited, vol. 51(5), pages 917-937, April.
    9. Truong, Truong P. & Hensher, David A., 2014. "Linking discrete choice to continuous demand in a spatial computable general equilibrium model," Journal of choice modelling, Elsevier, vol. 12(C), pages 21-46.
    10. Hörcher, Daniel & De Borger, Bruno & Seifu, Woubit & Graham, Daniel J., 2020. "Public transport provision under agglomeration economies," Regional Science and Urban Economics, Elsevier, vol. 81(C).
    11. Yang, Zhiwei & Li, Can & Jiao, Jingjuan & Liu, Wei & Zhang, Fangni, 2020. "On the joint impact of high-speed rail and megalopolis policy on regional economic growth in China," Transport Policy, Elsevier, vol. 99(C), pages 20-30.
    12. Laird, James J. & Venables, Anthony J., 2017. "Transport investment and economic performance: A framework for project appraisal," Transport Policy, Elsevier, vol. 56(C), pages 1-11.
    13. Yoshitsugu Kanemoto, 2013. "Pitfalls in estimating “wider economic benefits” of transportation projects," GRIPS Discussion Papers 13-20, National Graduate Institute for Policy Studies.
    14. Anas, Alex & Chang, Huibin, 2023. "Productivity benefits of urban transportation megaprojects: A general equilibrium analysis of «Grand Paris Express»," Transportation Research Part B: Methodological, Elsevier, vol. 174(C).
    15. Thomas de Graaff & Frank G. van Oort & Raymond J.G.M. Florax, 2012. "Regional Population–Employment Dynamics Across Different Sectors Of The Economy," Journal of Regional Science, Wiley Blackwell, vol. 52(1), pages 60-84, February.
    16. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    17. Eivind Tveter, 2021. "Transport network improvements: The effects on wage earnings," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 478-491, June.
    18. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 247-348, Elsevier.
    19. Gilles Duranton & Diego Puga, 2020. "The Economics of Urban Density," Journal of Economic Perspectives, American Economic Association, vol. 34(3), pages 3-26, Summer.
    20. Gibbons, Steve & Overman, Henry G. & Patacchini, Eleonora, 2015. "Spatial Methods," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 115-168, Elsevier.
    21. repec:bof:bofrdp:urn:nbn:fi:bof-201512111472 is not listed on IDEAS
    22. Maré, David C. & Graham, Daniel J., 2013. "Agglomeration elasticities and firm heterogeneity," Journal of Urban Economics, Elsevier, vol. 75(C), pages 44-56.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jotrge:v:24:y:2012:i:c:p:292-305. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-transport-geography .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.