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Does building new roads really create extra traffic? Some new evidence

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  • A. B. Prakash
  • E. H. D'A. Oliver
  • K. Balcombe

Abstract

The debate that expenditure on new or existing roads induces more traffic has intensified during the 1990s in most developed countries. In this paper the controversy is readdressed from a UK perspective, using the method of Granger noncausality. Results indicate that aggregate expenditure on new and existing roads does not induce additional traffic in the Granger sense. Conversely, the results found that traffic Granger causes road expenditure. The importance of these results, along with issues concerning the selection and specification of dynamic models, are discussed.

Suggested Citation

  • A. B. Prakash & E. H. D'A. Oliver & K. Balcombe, 2001. "Does building new roads really create extra traffic? Some new evidence," Applied Economics, Taylor & Francis Journals, vol. 33(12), pages 1579-1585.
    • Handle: RePEc:taf:applec:v:33:y:2001:i:12:p:1579-1585
    DOI: 10.1080/00036840010013617
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    References listed on IDEAS

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    1. Werner Ploberger & Peter C.B. Phillips, 1998. "Rissanen's Theorem and Econometric Time Series," Cowles Foundation Discussion Papers 1197, Cowles Foundation for Research in Economics, Yale University.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Do more roads really mean less congestion for commuters?
      by Michiel Bliemer, Professor in Transport and Logistics Network Modelling at University of Sydney in The Conversation on 2015-04-13 01:33:10

    Citations

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    Cited by:

    1. Devine, Jon & Plastina, Alejandro S. & Theriault, Veronique, 2012. "Cotton Market Integration across Countries, among Qualities, and through Time," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124962, Agricultural and Applied Economics Association.
    2. Rahman, Mohammad Chhiddikur, 2020. "Welfare Impact of Asymmetric Price Transmission on Bangladesh Rice Consumers," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 242248, September.
    3. Carlos Oliveira Cruz & Joaquim Miranda Sarmento, 2020. "Traffic forecast inaccuracy in transportation: a literature review of roads and railways projects," Transportation, Springer, vol. 47(4), pages 1571-1606, August.
    4. Santos, Georgina & Behrendt, Hannah & Teytelboym, Alexander, 2010. "Part II: Policy instruments for sustainable road transport," Research in Transportation Economics, Elsevier, vol. 28(1), pages 46-91.
    5. Taslim, M A & Hossain, Md Amzad, 2015. "Asymmetric Transmission of International Price of Edible Oil in Bangladesh," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 38(01), pages 33-54, March.
    6. Phil Goodwin & Robert Noland, 2003. "Building new roads really does create extra traffic: a response to Prakash et al," Applied Economics, Taylor & Francis Journals, vol. 35(13), pages 1451-1457.
    7. González, Rosa Marina & Marrero, Gustavo A., 2012. "Induced road traffic in Spanish regions: A dynamic panel data model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(3), pages 435-445.
    8. Concas, Sisinnio, 2012. "Highway capital expenditures and induced vehicle travel," MPRA Paper 40757, University Library of Munich, Germany, revised 12 Aug 2012.

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