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The underground economy: Tracking the higher-order economic impacts of the São Paulo Subway System

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  • Haddad, Eduardo A.
  • Hewings, Geoffrey J.D.
  • Porsse, Alexandre A.
  • Van Leeuwen, Eveline S.
  • Vieira, Renato S.

Abstract

Over one million workers commute daily to São Paulo City center, using different modes of transportation. The São Paulo subway network reaches 74.2km of length and is involved in around 20% of the commuting trips by public transportation, enhancing mobility and productivity of workers. This paper uses an integrated framework to assess the higher-order economic impacts of the existing underground metro infrastructure. We consider links between mobility, accessibility and labor productivity in the context of a detailed metropolitan system embedded in the national economy. Simulation results from a spatial computable general equilibrium model integrated to a transportation model suggest positive economic impacts that go beyond the city limits. While 32% of the impacts accrue to the city of São Paulo, the remaining 68% benefit other municipalities in the metropolitan area (11%), in the State of São Paulo (12.0%) and in the rest of the country (45%).

Suggested Citation

  • Haddad, Eduardo A. & Hewings, Geoffrey J.D. & Porsse, Alexandre A. & Van Leeuwen, Eveline S. & Vieira, Renato S., 2015. "The underground economy: Tracking the higher-order economic impacts of the São Paulo Subway System," Transportation Research Part A: Policy and Practice, Elsevier, vol. 73(C), pages 18-30.
    • Handle: RePEc:eee:transa:v:73:y:2015:i:c:p:18-30
    DOI: 10.1016/j.tra.2014.12.011
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    4. Sass, Karina Simone & Haddad, Eduardo Amaral & Mendiondo, Eduardo Mario, 2023. "Impacts of Droughts on Economic Activities in The São Paulo Metropolitan Area," TD NEREUS 4-2023, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    5. Betarelli, Admir Antonio & Domingues, Edson Paulo & Hewings, Geoffrey John Dennis, 2020. "Transport policy, rail freight sector and market structure: The economic effects in Brazil," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 1-23.
    6. Haddad, Eduardo & Mena-Chalco, Jesús & Sidone, Otávio, 2015. "Scholarly Collaboration in Regional Science in Developing Countries: The Case of the Brazilian REAL Network," TD NEREUS 4-2015, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    7. Robson, Edward N. & Wijayaratna, Kasun P. & Dixit, Vinayak V., 2018. "A review of computable general equilibrium models for transport and their applications in appraisal," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 31-53.
    8. Soares, N. & Martins, A.G. & Carvalho, A.L. & Caldeira, C. & Du, C. & Castanheira, É. & Rodrigues, E. & Oliveira, G. & Pereira, G.I. & Bastos, J. & Ferreira, J.P. & Ribeiro, L.A. & Figueiredo, N.C. & , 2018. "The challenging paradigm of interrelated energy systems towards a more sustainable future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 95(C), pages 171-193.
    9. Amaral Haddad, Eduardo & Lozano-Gracia, Nancy & Germani, Eduardo & Vieira, Renato & Nakamura, Shohei & Skoufias, Emmanuel & Bianchi Alves, Bianca, 2018. "Mobility in Cities: Distributional Impact Analysis of Transportation Improvement in São Paulo Metropolitan Region," TD NEREUS 4-2018, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    10. Ciyun Lin & Kang Wang & Dayong Wu & Bowen Gong, 2020. "Passenger Flow Prediction Based on Land Use around Metro Stations: A Case Study," Sustainability, MDPI, vol. 12(17), pages 1-22, August.
    11. Eduardo A. Haddad & Jesús P. Mena-Chalco & Otávio J. G. Sidone, 2017. "Scholarly Collaboration in Regional Science in Developing Countries," International Regional Science Review, , vol. 40(5), pages 500-529, September.
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