IDEAS home Printed from https://ideas.repec.org/a/eee/retrec/v66y2017icp36-45.html
   My bibliography  Save this article

Urban agglomeration benefits from public transit improvements: Extending and implementing the Venables model

Author

Listed:
  • Hazledine, Tim
  • Donovan, Stuart
  • Mak, Christine

Abstract

In the Venables model, commuting costs determine the size of the Central Business District (CBD) workforce and thus the productivity and wage premium generated by agglomeration economies in the CBD. Improvements in public transit modes increase numbers willing to commute to work in the CBD, and generate additional productivity gains. The resulting efficiencies can greatly exceed estimates of direct travel time savings from the PT innovation. The Venables model is operationalised and extended, and applied illustratively to two actual PT innovations in Auckland: improved bus lanes, and improved rail service.

Suggested Citation

  • Hazledine, Tim & Donovan, Stuart & Mak, Christine, 2017. "Urban agglomeration benefits from public transit improvements: Extending and implementing the Venables model," Research in Transportation Economics, Elsevier, vol. 66(C), pages 36-45.
    • Handle: RePEc:eee:retrec:v:66:y:2017:i:c:p:36-45
    DOI: 10.1016/j.retrec.2017.09.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0739885917300525
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.retrec.2017.09.002?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Maré, David C. & Graham, Daniel J., 2013. "Agglomeration elasticities and firm heterogeneity," Journal of Urban Economics, Elsevier, vol. 75(C), pages 44-56.
    2. Nicholas Crafts, 2009. "Transport infrastructure investment: implications for growth and productivity," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 25(3), pages 327-343, Autumn.
    3. 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.
    4. 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.
    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. David C. Maré & Daniel J. Graham, 2009. "Agglomeration Elasticities in New Zealand," Working Papers 09_06, Motu Economic and Public Policy Research.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huimin Peng & Yi Qiu, 2023. "Impact of Financial Agglomeration on Regional Economic Growth in China: A Spatial Correlation Perspective," SAGE Open, , vol. 13(3), pages 21582440231, September.
    2. Yang, Xing-Qi & Huang, Hai-Jun, 2022. "Effects of HSR station location on urban spatial structure: A spatial equilibrium analysis for a two-city system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 166(C).
    3. Nir Sharav & Yoram Shiftan, 2021. "Optimal Urban Transit Investment Model and Its Application," Sustainability, MDPI, vol. 13(16), pages 1-29, August.

    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. Eivind Tveter, 2021. "Transport network improvements: The effects on wage earnings," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 478-491, June.
    2. 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.
    3. Patricia C. Melo & Daniel J. Graham, 2018. "Transport‐induced agglomeration effects: Evidence for US metropolitan areas," Regional Science Policy & Practice, Wiley Blackwell, vol. 10(1), pages 37-47, March.
    4. Eliasson, Jonas & Fosgerau, Mogens, 2019. "Cost-benefit analysis of transport improvements in the presence of spillovers, matching and an income tax," Economics of Transportation, Elsevier, vol. 18(C), pages 1-9.
    5. 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.
    6. Oh, Seunghoon & Chen, Na, 2022. "Do public transit and agglomeration economies collectively enhance low-skilled job accessibility in Portland, OR?," Transport Policy, Elsevier, vol. 115(C), pages 209-219.
    7. Banister, David & Thurstain-Goodwin, Mark, 2011. "Quantification of the non-transport benefits resulting from rail investment," Journal of Transport Geography, Elsevier, vol. 19(2), pages 212-223.
    8. 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.
    9. repec:mul:je8794:doi:10.1429/34355:y:2011:i:1:p:125 is not listed on IDEAS
    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. Rosa M. González-Marrero & Rosa M. Lorenzo-Alegría & Gustavo A. Marrero, 2011. "Los Efectos Territoriales de las Infraestructuras: La inversión en redes de alta velocidad ferroviaria," Economic Reports 05-2011, FEDEA.
    12. 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.
    13. Marion Drut & Aurélie Mahieux, 2014. "Correcting agglomeration economies: How air pollution matters," Working Papers hal-01007019, HAL.
    14. Vickerman, Roger, 2018. "Can high-speed rail have a transformative effect on the economy?," Transport Policy, Elsevier, vol. 62(C), pages 31-37.
    15. 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).
    16. 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).
    17. Gibbons, Stephen & Lyytikäinen, Teemu & Overman, Henry G. & Sanchis-Guarner, Rosa, 2019. "New road infrastructure: The effects on firms," Journal of Urban Economics, Elsevier, vol. 110(C), pages 35-50.
    18. Riukula, Krista & Väänänen, Touko, 2024. "Estimating the Labour Market Impacts of Transport Projects in Finland," ETLA Working Papers 120, The Research Institute of the Finnish Economy.
    19. 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.
    20. World Bank, 2014. "Regional Economic Impact Analysis of High Speed Rail in China : Main Report," World Bank Publications - Reports 19996, The World Bank Group.
    21. Vickerman, Roger, 2008. "Transit investment and economic development," Research in Transportation Economics, Elsevier, vol. 23(1), pages 107-115, January.

    More about this item

    Keywords

    Venables model; Commuting; Commuting costs; Agglomeration economies; Urban wage premia; Public transit; Public transit innovations; Public transport; Public transport innovations;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

    Statistics

    Access and download statistics

    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:retrec:v:66:y:2017:i:c:p:36-45. 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: http://www.elsevier.com/wps/find/journaldescription.cws_home/620614/description#description .

    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.