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How large are road traffic externalities in the city? The highway tunneling in Maastricht, the Netherlands

Author

Listed:
  • Joep Tijm

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Thomas Michielsen
  • Peter Zwaneveld

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Raoul van Maarseveen

Abstract

Infrastructure projects are increasingly aiming to improve liveability, in particular in urban areas. We analyse a specifi c case in which an existing highway in an urban area was moved underground in order to improve intercity traffic flows and to reduce traffic externalities. As travel times within the city hardly changed, this allows for a clean identification of the value of traffic externalities. We find that the liveability benefits of such integrated infrastructure are substantial relative to the construction costs. Each halving of distance to the tunneled segment is associated with 3.5% more appreciation in house prices since the start of the project.

Suggested Citation

  • Joep Tijm & Thomas Michielsen & Peter Zwaneveld & Raoul van Maarseveen, 2018. "How large are road traffic externalities in the city? The highway tunneling in Maastricht, the Netherlands," CPB Discussion Paper 379, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:379
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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