IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v12y2005i6p537-544.html
   My bibliography  Save this article

Network effects and total economic impact in transport appraisal

Author

Listed:
  • Laird, James J.
  • Nellthorp, John
  • Mackie, Peter J.

Abstract

It is sometimes claimed that transport infrastructure projects have network effects, which are not taken into account in the appraisal of these projects. This paper reviews the concept of network effects, relates this to transport appraisal practice, and links to the concept of 'total economic impact'. The limitations of transport modelling and appraisal in estimating total economic impact are reviewed. Good quality appraisals should be capable of picking up relevant network effects in the transport market, but the state of the art remains limited on the linkages between transport and the wider economy.

Suggested Citation

  • Laird, James J. & Nellthorp, John & Mackie, Peter J., 2005. "Network effects and total economic impact in transport appraisal," Transport Policy, Elsevier, vol. 12(6), pages 537-544, November.
  • Handle: RePEc:eee:trapol:v:12:y:2005:i:6:p:537-544
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967-070X(05)00090-9
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    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. Winston, Clifford, 1985. "Conceptual Development in the Economics of Transportation: An Interpretive Survey," Journal of Economic Literature, American Economic Association, vol. 23(1), pages 57-94, March.
    2. van Exel, Job & Rienstra, Sytze & Gommers, Michael & Pearman, Alan & Tsamboulas, Dimitrios, 2002. "EU involvement in TEN development: network effects and European value added," Transport Policy, Elsevier, vol. 9(4), pages 299-311, October.
    3. Christopher Mayer & Todd Sinai, 2003. "Network Effects, Congestion Externalities, and Air Traffic Delays: Or Why Not All Delays Are Evil," American Economic Review, American Economic Association, vol. 93(4), pages 1194-1215, September.
    4. Jara-Díaz, Sergio R. & Basso, Leonardo J., 2003. "Transport cost functions, network expansion and economies of scope," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(4), pages 271-288, July.
    5. Johannes Brocker & d’Artis Kancs, 2001. "Methodology for the Assessment of Spatial Economic Impacts of Transport Projects and Policies," EERI Research Paper Series EERI_RP_2001_03, Economics and Econometrics Research Institute (EERI), Brussels.
    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. Gutiérrez, Javier & Condeço-Melhorado, Ana & Martín, Juan Carlos, 2010. "Using accessibility indicators and GIS to assess spatial spillovers of transport infrastructure investment," Journal of Transport Geography, Elsevier, vol. 18(1), pages 141-152.
    2. Peter Mackie & Daniel Graham & James Laird, 2011. "The Direct and Wider Impacts of Transport Projects: A Review," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 21, Edward Elgar Publishing.
    3. Deng, Ping & Song, Lian & Xiao, Ruiqi & Huang, Chengfeng, 2022. "Evaluation of logistics and port connectivity in the Yangtze River Economic Belt of China," Transport Policy, Elsevier, vol. 126(C), pages 249-267.
    4. Gutiérrez, Javier & Condeço-Melhorado, Ana & López, Elena & Monzón, Andrés, 2011. "Evaluating the European added value of TEN-T projects: a methodological proposal based on spatial spillovers, accessibility and GIS," Journal of Transport Geography, Elsevier, vol. 19(4), pages 840-850.
    5. Renata Činčikaitė & Ieva Meidutė-Kavaliauskienė, 2022. "An Integrated Assessment of the Competitiveness of a Sustainable City within the Context of the COVID-19 Impact," Sustainability, MDPI, vol. 14(13), pages 1-19, June.
    6. Riccardo Crescenzi & Andrés Rodríguez-Pose, 2012. "Infrastructure and regional growth in the European Union," Papers in Regional Science, Wiley Blackwell, vol. 91(3), pages 487-513, August.
    7. Marcela Martínez & Carolina Rojas & Ana Condeço-Melhorado & Juan Antonio Carrasco, 2021. "Accessibility Indicators for the Geographical Assessment of Transport Planning in a Latin American Metropolitan Area," Geographies, MDPI, vol. 1(2), pages 1-19, September.
    8. Euijune Kim & Seung‐Woon Moon & Yoojin Yi, 2021. "Analyzing spillover effects of development of Asian highway on regional growth of Northeast Asian countries," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1243-1266, August.
    9. Tsamboulas, Dimitrios A., 2007. "A tool for prioritizing multinational transport infrastructure investments," Transport Policy, Elsevier, vol. 14(1), pages 11-26, January.
    10. Yi, Yoojin & Kim, Euijune, 2018. "Spatial economic impact of road and railroad accessibility on manufacturing output: Inter-modal relationship between road and railroad," Journal of Transport Geography, Elsevier, vol. 66(C), pages 144-153.
    11. Tsou, Ko-Wan & Cheng, Hao-Teng & Tseng, Fu-Yi, 2015. "Exploring the relationship between multilevel highway networks and local development patterns—a case study of Taiwan," Journal of Transport Geography, Elsevier, vol. 43(C), pages 160-170.
    12. Cárcamo-Díaz, Rodrigo, 2007. "Coordination of public expenditure in transport infrastructure: analysis and policy perspectives for Latin America," Macroeconomía del Desarrollo 5423, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    13. Roberts, Mark & Deichmann, Uwe & Fingleton, Bernard & Shi, Tuo, 2010. "On the road to prosperity ? The economic geography of China's national expressway network," Policy Research Working Paper Series 5479, The World Bank.
    14. Catalão, Francisco Pinheiro & Cruz, Carlos Oliveira & Sarmento, Joaquim Miranda, 2019. "The determinants of cost deviations and overruns in transport projects, an endogenous models approach," Transport Policy, Elsevier, vol. 74(C), pages 224-238.
    15. Vickerman, Roger, 2008. "Transit investment and economic development," Research in Transportation Economics, Elsevier, vol. 23(1), pages 107-115, January.
    16. Liu, Tie-Ying, 2019. "Spatial structure convergence of China's transportation system," Research in Transportation Economics, Elsevier, vol. 78(C).
    17. Juan Carlos García-Palomares & Javier Gutiérrez & Juan Carlos Martín & Borja Moya-Gómez, 2018. "An analysis of the Spanish high capacity road network criticality," Transportation, Springer, vol. 45(4), pages 1139-1159, July.
    18. Condeço-Melhorado, Ana & Tillema, Taede & de Jong, Tom & Koopal, Rogier, 2014. "Distributive effects of new highway infrastructure in the Netherlands: the role of network effects and spatial spillovers," Journal of Transport Geography, Elsevier, vol. 34(C), pages 96-105.
    19. Ciccarelli, Carlo & Magazzino, Cosimo & Marcucci, Edoardo, 2021. "Early development of Italian railways and industrial growth: A regional analysis," Research in Transportation Economics, Elsevier, vol. 88(C).
    20. Concepción Román, 2008. "Competencia intermodal en el corredor Madrid-Zaragoza-Barcelona ante la introducción del tren de alta velocidad," Economic Reports 11-08, FEDEA.
    21. Tovar, Beatriz & Hernández, Rubén & Rodríguez-Déniz, Héctor, 2015. "Container port competitiveness and connectivity: The Canary Islands main ports case," Transport Policy, Elsevier, vol. 38(C), pages 40-51.
    22. Chikaraishi, Makoto & Jana, Arnab & Bardhan, Ronita & Varghese, Varun & Fujiwara, Akimasa, 2017. "A framework to analyze capability and travel in formal and informal urban settings: A case from Mumbai," Journal of Transport Geography, Elsevier, vol. 65(C), pages 101-110.
    23. Feuerstein, Lisa & Busacker, Torsten & Xu, Jingjing, 2018. "Factors influencing open access competition in the European long-distance passenger rail transport — A Delphi study," Research in Transportation Economics, Elsevier, vol. 69(C), pages 300-309.
    24. Sobieralski, Joseph B., 2021. "Transportation infrastructure and employment: Are all investments created equal?," Research in Transportation Economics, Elsevier, vol. 88(C).

    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. Leonardo J. Basso & Sergio R. Jara-Díaz, 2006. "Are Returns to Scale with Variable Network Size Adequate for Transport Industry Structure Analysis?," Transportation Science, INFORMS, vol. 40(3), pages 259-268, August.
    2. Clifford Winston, 2013. "On the Performance of the U.S. Transportation System: Caution Ahead," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 773-824, September.
    3. de Rus, Gines & Campos, Javier, 2005. "Los fundamentos económicos de la política de transporte europea: un análisis crítico [The foundations of the European transport policy]," MPRA Paper 12395, University Library of Munich, Germany.
    4. Leonardo J. Basso & Sergio R. Jara-Díaz & William G. Waters, 2011. "Cost Functions for Transport Firms," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 12, Edward Elgar Publishing.
    5. Jara-Díaz, Sergio R. & Cortés, Cristián E. & Morales, Gabriela A., 2013. "Explaining changes and trends in the airline industry: Economies of density, multiproduct scale, and spatial scope," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 13-26.
    6. Flores-Fillol, Ricardo, 2010. "Congested hubs," Transportation Research Part B: Methodological, Elsevier, vol. 44(3), pages 358-370, March.
    7. Achim I. Czerny & Anming Zhang, 2010. "Airport Congestion Pricing and Passenger Types," WHU Working Paper Series - Economics Group 10-01, WHU - Otto Beisheim School of Management.
    8. Dan Liu & Zhenghong Deng & Qipeng Sun & Yong Wang & Yinhai Wang, 2019. "Design and Freight Corridor-Fleet Size Choice in Collaborative Intermodal Transportation Network Considering Economies of Scale," Sustainability, MDPI, vol. 11(4), pages 1-19, February.
    9. Pablo D. Fajgelbaum & Edouard Schaal, 2020. "Optimal Transport Networks in Spatial Equilibrium," Econometrica, Econometric Society, vol. 88(4), pages 1411-1452, July.
    10. John Bitzan & Wesley Wilson, 2007. "Industry costs and consolidation: efficiency gains and mergers in the U.S. railroad industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 30(2), pages 81-105, March.
    11. Dixit, Aasheesh & Jakhar, Suresh Kumar, 2021. "Airport capacity management: A review and bibliometric analysis," Journal of Air Transport Management, Elsevier, vol. 91(C).
    12. Michael Mazzeo, 2003. "Competition and Service Quality in the U.S. Airline Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 22(4), pages 275-296, June.
    13. Ian W. H. Parry & Antonio Bento, 2001. "Revenue Recycling and the Welfare Effects of Road Pricing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 645-671, December.
    14. Chen, Zhenhua & Haynes, Kingsley E., 2013. "Transportation Capital in the US: A Multimodal General Equilibrium Analysis," Conference papers 332323, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Jiang, Changmin & Zhang, Anming, 2015. "Airport congestion pricing and terminal investment: Effects of terminal congestion, passenger types, and concessionsAuthor-Name: Wan, Yulai," Transportation Research Part B: Methodological, Elsevier, vol. 82(C), pages 91-113.
    16. Pedro Casares & Pablo Coto-Millán, 2011. "Passenger transport planning. A Benefit-Cost Analysis of the High Speed Railway: The case of Spain," Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016), Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 2, pages 1-1, December.
    17. Germa Manel Bel Queralt, 1996. "Autovias y ferrocarriles: un modelo para evaluar efectos intermodales de la politica de infaestructuras," Working Papers in Economics 1, Universitat de Barcelona. Espai de Recerca en Economia.
    18. Gordon Phillips & Giorgo Sertsios, 2013. "How Do Firm Financial Conditions Affect Product Quality and Pricing?," Management Science, INFORMS, vol. 59(8), pages 1764-1782, August.
    19. Diana, Tony, 2009. "Do market-concentrated airports propagate more delays than less concentrated ones? A case study of selected U.S. airports," Journal of Air Transport Management, Elsevier, vol. 15(6), pages 280-286.
    20. Joseph I. Daniel & Katherine Thomas Harback, 2005. "Do Airlines that Dominate Traffic at Hub Airports Experience Less Delay?," Working Papers 05-09, University of Delaware, Department of Economics.

    More about this item

    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:trapol:v:12:y:2005:i:6:p:537-544. 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/30473/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.