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Welfare analysis in transport networks

Author

Listed:
  • Paul Besseling
  • Maarten van 't Riet

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

Should one calculate user benefits from changes in door-to-door journeys or from changes in the use of separate links of the network? Quite often, the second approach is deemed wrong, as consumers are supposed to demand journeys, not parts of journeys. However, we show that for a quite general economic model and under fairly general assumptions regarding the network, both approaches are equivalent. The cost-benefit analysis practitioner can exploit this result. The links approach reveals on what part of the networks user benefits and/or losses are generated. This additional piece of information might help to optimize the project design.

Suggested Citation

  • Paul Besseling & Maarten van 't Riet, 2009. "Welfare analysis in transport networks," CPB Discussion Paper 130, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:130
    as

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    References listed on IDEAS

    as
    1. Eliasson, Jonas, 2009. "A cost-benefit analysis of the Stockholm congestion charging system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(4), pages 468-480, May.
    2. Kidokoro, Yukihiro, 2006. "Benefit estimation of transport projects--a representative consumer approach," Transportation Research Part B: Methodological, Elsevier, vol. 40(7), pages 521-542, August.
    3. Yukihiro Kidokoro, 2004. "Cost-Benefit Analysis for Transport Networks: Theory and Application," Journal of Transport Economics and Policy, University of Bath, vol. 38(2), pages 275-307, May.
    4. Van Dender, Kurt, 2004. "Pricing transport networks with fixed residential location," Regional Science and Urban Economics, Elsevier, vol. 34(3), pages 289-307, May.
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    Cited by:

    1. Maarten van 't Riet, 2011. "The link approach to measuring consumer surplus in transport networks," CPB Discussion Paper 199, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Maarten van 't Riet, 2011. "The link approach to measuring consumer surplus in transport networks," CPB Discussion Paper 199.rdf, CPB Netherlands Bureau for Economic Policy Analysis.

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    More about this item

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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