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Methodology for the Assessment of Spatial Economic Impacts of Transport Projects and Policies

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  • Johannes Brocker
  • d’Artis Kancs

Abstract

In this study we develop an integrated econometric and CGE modelling framework for transport projects and transport policies at the European level by integrating network, regional economic and macro-economic impacts. The paper presents the formal structure of the integrated econometric and CGE modelling framework, explains the calibration and applies it to the policy evaluation. The effects of infrastructure investments are modelled by simulating trade cost changes in a comparative static analysis, using estimates of trade cost changes due to new infrastructure links, obtained from a transport network model. By performing a systematic and quantitative analysis of the spatial, network and socio-economic impacts of transport investments and policy and carrying out scenario simulations we improve the under-standing of the impact of transportation policies on short- and long-term spatial development in the EU.

Suggested Citation

  • 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.
    • Handle: RePEc:eei:rpaper:eeri_rp_2001_03
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    References listed on IDEAS

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    1. Artis Kancs, 2001. "Predicting European Enlargement Impacts: A Framework of Interregional General Equilibrium," Eastern European Economics, Taylor & Francis Journals, vol. 39(5), pages 31-63, September.
    2. Bröcker, Johannes, 1998. "Spatial effects of transeuropean networks: Preliminary results from a spatial computable general equilibrium analysis," Discussion Papers 4/98, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
    3. Roger Vickerman & Klaus Spiekermann & Michael Wegener, 1999. "Accessibility and Economic Development in Europe," Regional Studies, Taylor & Francis Journals, vol. 33(1), pages 1-15.
    4. Piet Rietveld & Frank Bruinsma, 1998. "Is Transport Infrastructure Effective?," Advances in Spatial Science, Springer, number 978-3-642-72232-5, February.
    5. Mackie, P.J. & Jara-Díaz, S. & Fowkes, A.S., 0. "The value of travel time savings in evaluation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 37(2-3), pages 91-106, April.
    6. Randall Jackson, 1998. "Regionalizing National Commodity-by-Industry Accounts," Economic Systems Research, Taylor & Francis Journals, vol. 10(3), pages 223-238.
    7. Lars Peter Hansen & James J. Heckman, 1996. "The Empirical Foundations of Calibration," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 87-104, Winter.
    8. Thomas Sonesson, 2001. "Inter-Urban Travel Demand Elasticities with Emphasis on Trip Generation and Destination Substitution," Journal of Transport Economics and Policy, University of Bath, vol. 35(2), pages 301-326, May.
    9. Sherman Robinson & Andrea Cattaneo & Moataz El-Said, 2001. "Updating and Estimating a Social Accounting Matrix Using Cross Entropy Methods," Economic Systems Research, Taylor & Francis Journals, vol. 13(1), pages 47-64.
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    Citations

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    Cited by:

    1. 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.
    2. Andries Brandsma & D'Artis Kancs, 2015. "RHOMOLO: A Dynamic General Equilibrium Modelling Approach to the Evaluation of the European Union's R&D Policies," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1340-1359, August.
    3. Olga Ivanova & d'Artis Kancs & Mark Thissen, 2019. "EU Economic Modelling System," Papers 1912.07115, arXiv.org.
    4. Francesco Di Comite & d'Artis Kancs & Patrizio Lecca, 2018. "Modeling agglomeration and dispersion in space: The role of labor migration, capital mobility and vertical linkages," Review of International Economics, Wiley Blackwell, vol. 26(3), pages 555-577, August.
    5. Zhenhua Chen, 2013. "Spatial Impact of Transportation Infrastructure: A Spatial Econometric CGE Approach," ERSA conference papers ersa13p241, European Regional Science Association.
    6. 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.
    7. Christophe Heyndrickx & Olaf Koops & Olga Ivanova, 2011. "The TIGER Model: Application of detailed passenger and freight transport in a regional CGE setting," ERSA conference papers ersa11p1571, European Regional Science Association.
    8. Olga Ivanova & d'Artis Kancs & Dirk Stelder, 2009. "Modelling Inter-Regional Trade Flows: Data and Methodological Issues in Rhomolo," EERI Research Paper Series EERI RP 2009/31, Economics and Econometrics Research Institute (EERI), Brussels.
    9. Bröcker, Johannes, 2002. "Passenger flows in CGE models for transport project evaluation," ERSA conference papers ersa02p163, European Regional Science Association.
    10. Robson, Edward N. & Wijayaratna, Kasun P. & Dixit, Vinayak V., 2018. "A review of computable general equilibrium models for transport and their applications in appraisal," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 31-53.
    11. Francesco Di Comite & dArtis Kancs, 2014. "Modelling of Agglomeration and Dispersion in RHOMOLO," JRC Research Reports JRC81349, Joint Research Centre.
    12. Knaap, Thijs & Oosterhaven, Jan, 2011. "Measuring the welfare effects of infrastructure: A simple spatial equilibrium evaluation of Dutch railway proposals," Research in Transportation Economics, Elsevier, vol. 31(1), pages 19-28.

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    More about this item

    Keywords

    Transport Policy; Impact analysis; Spatial CGE Model;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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