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Pitfalls in estimating “wider economic benefits” of transportation projects

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  • Yoshitsugu Kanemoto

    (National Graduate Institute for Policy Studies)

Abstract

The Department for Transport in the United Kingdom has been a pioneer in including indirect benefits in the cost–benefit analysis of a transport project. They identify three types of wider impacts, i.e., (1) agglomeration, (2) increased or decreased output in imperfectly competitive markets, and (3) labor market impacts, and provide detailed guidelines on how to estimate them. Extending a differentiated product model that provides the microfoundations of urban agglomeration economies to include all three types of the wider impacts, this paper examines whether the British methodology of estimating the wider benefits can be justified theoretically.

Suggested Citation

  • Yoshitsugu Kanemoto, 2013. "Pitfalls in estimating “wider economic benefits” of transportation projects," GRIPS Discussion Papers 13-20, National Graduate Institute for Policy Studies.
    • Handle: RePEc:ngi:dpaper:13-20
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    References listed on IDEAS

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    1. Behrens, Kristian & Kanemoto, Yoshitsugu & Murata, Yasusada, 2015. "The Henry George Theorem in a second-best world," Journal of Urban Economics, Elsevier, vol. 85(C), pages 34-51.
    2. A S M Abdul Quium, 2019. "Transport Corridors for Wider Socio–Economic Development," Sustainability, MDPI, vol. 11(19), pages 1-23, September.
    3. Paal Brevik Wangsness & Kenneth Løvold Rødseth & Wiljar Hansen, 2017. "A review of guidelines for including wider economic impacts in transport appraisal," Transport Reviews, Taylor & Francis Journals, vol. 37(1), pages 94-115, January.
    4. Morgenroth, Edgar, 2014. "The Regional Development Impacts of Transport Infrastructure: A Literature Review and Policy Implications," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT278.
    5. Jetpan Wetwitoo & Hironori Kato, 2017. "Inter-regional transportation and economic productivity: a case study of regional agglomeration economies in Japan," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(2), pages 321-344, September.

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