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The political economy of infrastructure planning in Sweden: supporting analyses

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Abstract

We study factors affecting the choice of objects to be included in the National Transport Infrastructure Plans for 2004-2015 and for 2010-2021 in Sweden, controlling for the CBA results. The present working paper contains both a comparative analysis between the two Plans, and sensitivity analyses for the econometric regressions of the 2010-21 Plan conducted in Jussila Hammes (forthcoming). We find that the centre-right government tended to favour those counties that voted for it. Both a centre-right and a centre-left government have favoured rail investments over road. Lobbying also matters; projects with co-financing from the local municipality(ies) have a greater probability of being included in the Plan. Industry lobbying has at best a borderline significant effect and affects the probability of a project being included in the Plan positively.

Suggested Citation

  • Jussila Hammes, Johanna, 2012. "The political economy of infrastructure planning in Sweden: supporting analyses," Working papers in Transport Economics 2012:21, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    • Handle: RePEc:hhs:ctswps:2012_021
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    File URL: http://www.transportportal.se/SWoPEc/CTS2012-21.pdf
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    1. Bent Flyvbjerg, 2009. "Survival of the unfittest: why the worst infrastructure gets built--and what we can do about it," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 25(3), pages 344-367, Autumn.
    2. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    3. Nyborg, Karine, 1998. "Some Norwegian Politicians' Use of Cost-Benefit Analysis," Public Choice, Springer, vol. 95(3-4), pages 381-401, June.
    4. Leif Helland & Rune Sørensen, 2009. "Geographical redistribution with disproportional representation: a politico-economic model of Norwegian road projects," Public Choice, Springer, vol. 139(1), pages 5-19, April.
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    1. Jussila Hammes, Johanna, 2015. "Political economics or Keynesian demand-side policies: What determines transport infrastructure investment in Swedish municipalities?," Research in Transportation Economics, Elsevier, vol. 51(C), pages 49-60.
    2. Jussila Hammes , Johanna & Nilsson, Jan-Eric, 2015. "The allocation of transport infrastructure in Swedish municipalities: welfare maximization, political economy or both?," Working papers in Transport Economics 2015:4, CTS - Centre for Transport Studies Stockholm (KTH and VTI).

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    More about this item

    Keywords

    Transport infrastructure plan; Lobbying; Co-financing; Freight benefits; Politics;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

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