IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i2p364-d197133.html
   My bibliography  Save this article

Analysis of the Wider Economic Impact of a Transport Infrastructure Project Using an Integrated Land Use Transport Model

Author

Listed:
  • Wanle Wang

    (National Engineering Research Center for Water Transportation Safety, 1040 Heping Avenue, Wuchang District, Wuhan 430063, China
    Intelligent Transport Systems Research Center, Wuhan University of Technology, 1040 Heping Avenue, Wuchang District, Wuhan 430063, China
    Engineering Research Center for Transportation Safety, Ministry of Education, 1040 Heping Avenue, Wuchang District, Wuhan 430063, China
    College of Air Traffic Management, Civil Aviation University of China, 2898 Jinbei Road, Dongli District, Tianjin 300300, China)

  • Ming Zhong

    (National Engineering Research Center for Water Transportation Safety, 1040 Heping Avenue, Wuchang District, Wuhan 430063, China
    Intelligent Transport Systems Research Center, Wuhan University of Technology, 1040 Heping Avenue, Wuchang District, Wuhan 430063, China
    Engineering Research Center for Transportation Safety, Ministry of Education, 1040 Heping Avenue, Wuchang District, Wuhan 430063, China)

  • John Douglas Hunt

    (National Engineering Research Center for Water Transportation Safety, 1040 Heping Avenue, Wuchang District, Wuhan 430063, China
    Intelligent Transport Systems Research Center, Wuhan University of Technology, 1040 Heping Avenue, Wuchang District, Wuhan 430063, China
    Engineering Research Center for Transportation Safety, Ministry of Education, 1040 Heping Avenue, Wuchang District, Wuhan 430063, China
    Department of Civil Engineering, University of Calgary, 2500 University Drive NW, Calgary, AB T2N 1N4, Canada)

Abstract

Major cities in developing countries are undergoing massive transportation infrastructure construction, which has significant impacts on the land use and economic activities in these cities. Standard Cost–Benefit Analysis (CBA) is applied to quantify the user benefits of transport projects, but does not provide an answer as to who will obtain the benefits and who will lose out and excludes the calculation of Wider Economic Impacts (WEIs) which can sometimes be large and hardly negligible. This paper introduces thoughts and experiences obtained through the design and development of an integrated land use transport model for the assessment of the WEI of a transport infrastructure project. The development and application of such an integrated model for WEI analysis should help decision-makers understand not only the “direct or immediate” impact of transport infrastructure on mobility, but also those “indirect or long-term” impacts on the distribution patterns of economic activities, corresponding land use, and resulting urban structure.

Suggested Citation

  • Wanle Wang & Ming Zhong & John Douglas Hunt, 2019. "Analysis of the Wider Economic Impact of a Transport Infrastructure Project Using an Integrated Land Use Transport Model," Sustainability, MDPI, vol. 11(2), pages 1-17, January.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:2:p:364-:d:197133
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/2/364/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/2/364/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kay, Andrew I. & Noland, Robert B. & DiPetrillo, Stephanie, 2014. "Residential property valuations near transit stations with transit-oriented development," Journal of Transport Geography, Elsevier, vol. 39(C), pages 131-140.
    2. J D Hunt & D C Simmonds, 1993. "Theory and Application of an Integrated Land-Use and Transport Modelling Framework," Environment and Planning B, , vol. 20(2), pages 221-244, April.
    3. Anthony J. Venables, 2016. "Incorporating Wider Economic Impacts within Cost-Benefit Appraisal," International Transport Forum Discussion Papers 2016/05, OECD Publishing.
    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. Lakshmanan, T.R., 2011. "The broader economic consequences of transport infrastructure investments," Journal of Transport Geography, Elsevier, vol. 19(1), pages 1-12.
    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. Lin, Hui-Lin & Li, Hsiao-Yun & Yang, Chih-Hai, 2011. "Agglomeration and productivity: Firm-level evidence from China's textile industry," China Economic Review, Elsevier, vol. 22(3), pages 313-329, September.
    8. Zondag, Barry & de Jong, Gerard, 2011. "The development of the TIGRIS XL model: A bottom-up approach to transport, land-use and the economy," Research in Transportation Economics, Elsevier, vol. 31(1), pages 55-62.
    9. Paul Pfaffenbichler & Günter Emberger & Simon Shepherd, 2008. "The Integrated Dynamic Land Use and Transport Model MARS," Networks and Spatial Economics, Springer, vol. 8(2), pages 183-200, September.
    10. 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.
    11. Dubé, Jean & Thériault, Marius & Des Rosiers, François, 2013. "Commuter rail accessibility and house values: The case of the Montreal South Shore, Canada, 1992–2009," Transportation Research Part A: Policy and Practice, Elsevier, vol. 54(C), pages 49-66.
    12. Cervero, Robert & Landis, John, 1997. "Twenty years of the Bay Area Rapid Transit system: Land use and development impacts," Transportation Research Part A: Policy and Practice, Elsevier, vol. 31(4), pages 309-333, July.
    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. M.V. Sergeeva, 2020. "Relationship Between Transport Infrastructure Development and Price Formation," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 19(4), pages 543-564.
    2. Krystian Pietrzak & Oliwia Pietrzak & Andrzej Montwiłł, 2021. "Effects of Incorporating Rail Transport into a Zero-Emission Urban Deliveries System: Application of Light Freight Railway (LFR) Electric Trains," Energies, MDPI, vol. 14(20), pages 1-24, October.
    3. Asif Raza & Muhammad Safdar & Ming Zhong & John Douglas Hunt, 2022. "Analyzing Spatial Location Preference of Urban Activities with Mode-Dependent Accessibility Using Integrated Land Use–Transport Models," Land, MDPI, vol. 11(8), pages 1-31, July.
    4. Asif Raza & Ming Zhong & Muhammad Safdar, 2022. "Evaluating Locational Preference of Urban Activities with the Time-Dependent Accessibility Using Integrated Spatial Economic Models," IJERPH, MDPI, vol. 19(14), pages 1-33, July.
    5. Le, Henry & Gurry, Finn & Lennox, James, 2023. "An application of land use, transport, and economy interaction model," Research in Transportation Economics, Elsevier, vol. 99(C).
    6. Krystian Pietrzak & Oliwia Pietrzak, 2022. "Tram System as a Challenge for Smart and Sustainable Urban Public Transport: Effects of Applying Bi-Directional Trams," Energies, MDPI, vol. 15(15), pages 1-29, August.
    7. Yakubu Suleiman & Adeyemi Ajayi & Sule Abass & Ogunbajo Rukaiyyat, 2020. "The Relationship Between Road Infrastructure Budgetary Expenditures and Commercial Property Investment Returns. Case Study of Fadikpe Area Minna, Nigeria," Baltic Journal of Real Estate Economics and Construction Management, Sciendo, vol. 8(1), pages 187-196, January.

    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. Dale, Simon & Frost, Matthew & Ison, Stephen & Nettleship, Ken & Warren, Peter, 2017. "An evaluation of the economic and business investment impact of an integrated package of public transport improvements funded by a Workplace Parking Levy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 101(C), pages 149-162.
    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. Gjestland, Arnstein & McArthur, David Philip & Osland, Liv & Thorsen, Inge, 2014. "The suitability of hedonic models for cost-benefit analysis: Evidence from commuting flows," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 136-151.
    4. 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.
    5. D. Knowles, Richard & Ferbrache, Fiona, 2016. "Evaluation of wider economic impacts of light rail investment on cities," Journal of Transport Geography, Elsevier, vol. 54(C), pages 430-439.
    6. Yu, Haitao & Jiao, Junfeng & Houston, Eric & Peng, Zhong-Ren, 2018. "Evaluating the relationship between rail transit and industrial agglomeration: An observation from the Dallas-fort worth region, TX," Journal of Transport Geography, Elsevier, vol. 67(C), pages 33-52.
    7. 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.
    8. Piotr Rosik & Julia Wójcik, 2022. "Transport Infrastructure and Regional Development: A Survey of Literature on Wider Economic and Spatial Impacts," Sustainability, MDPI, vol. 15(1), pages 1-19, December.
    9. Gong, Zhenwei & Zhang, Fangni & Liu, Wei & Graham, Daniel J., 2023. "On the effects of airport capacity expansion under responsive airlines and elastic passenger demand," Transportation Research Part B: Methodological, Elsevier, vol. 170(C), pages 48-76.
    10. Bhatt, Ayushman & Kato, Hironori, 2021. "High-speed rails and knowledge productivity: A global perspective," Transport Policy, Elsevier, vol. 101(C), pages 174-186.
    11. 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.
    12. Zhong, Haotian & Li, Wei, 2016. "Rail transit investment and property values: An old tale retold," Transport Policy, Elsevier, vol. 51(C), pages 33-48.
    13. Weisbrod, Glen & Hensher, David A., 2023. "Improving transportation project evaluation by recognizing the role of spatial scale and context in measuring non-user economic benefits," Transport Policy, Elsevier, vol. 144(C), pages 80-89.
    14. Li, Hongchang & Strauss, Jack & Shunxiang, Hu & Lui, Lu, 2018. "Do high-speed railways lead to urban economic growth in China? A panel data study of China’s cities," The Quarterly Review of Economics and Finance, Elsevier, vol. 69(C), pages 70-89.
    15. Simmonds, David & Feldman, Olga, 2011. "Alternative approaches to spatial modelling," Research in Transportation Economics, Elsevier, vol. 31(1), pages 2-11.
    16. Li, Tiebei & Dodson, Jago, 2020. "Job growth, accessibility, and changing commuting burden of employment centres in Melbourne," Journal of Transport Geography, Elsevier, vol. 88(C).
    17. 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.
    18. Bothe, Kristian & Hansen, Høgni Kalsø & Winther, Lars, 2018. "Spatial restructuring and uneven intra-urban employment growth in metro- and non-metro-served areas in Copenhagen," Journal of Transport Geography, Elsevier, vol. 70(C), pages 21-30.
    19. Lee, Jae Kwang, 2021. "Transport infrastructure investment, accessibility change and firm productivity: Evidence from the Seoul region," Journal of Transport Geography, Elsevier, vol. 96(C).
    20. Hensher, David A. & Ho, Chinh Q. & Ellison, Richard B., 2019. "Simultaneous location of firms and jobs in a transport and land use model," Journal of Transport Geography, Elsevier, vol. 75(C), pages 110-121.

    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:gam:jsusta:v:11:y:2019:i:2:p:364-:d:197133. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.