This chapter discusses the role of the railway in the regional industrialization of Scandinavia. It is focused on two questions: Did the emerging industry spur building of railways or did the building of railways promote the industrial development? Did the causes and effects change direction over time? Moreover, the related issue of the relationship between industry’s regional concentration and dispersion, on the one hand, and national economic growth, on the other, is discussed with examples from Sweden and Norway.
William P. Anderson, Hanna Maoh and Charles Burke
This chapter presents estimates of total employment impacts at both the regional and national levels for the Herb Gray Parkway construction project in Windsor, Ontario, Canada. Because this study is based on detailed quarterly employment and purchasing data provided by the contractor, it generates more specific and accurate estimates than conventional input-output and other multiplier methods. The ex post estimates are contrasted with higher ex ante estimates and reasons for the gap between the two are explained. This yields insight into why anticipated employment impacts may be over-estimated and provides guidelines for more realistic impact projections. The chapter also addresses the question of what long-term regional structural transformations may arise from capital formation, skills development, technology transfer and other processes.
Departing from conventional approaches in modeling transportation, this chapter captures transportation’s direct utility and external effects, and develops general equilibrium models of transportation for aggregate economies. The basic model determines the optimal level of transport infrastructure capital and its tax-price for an economy exhibiting constant returns to scale technology. This model framework is extended to two models for economies exhibiting increasing returns to scale. While the planning equilibria are optimal in these models as in the basic model, the decentralized market equilibria are sub-optimal. Some results of the basic model framework relevant to transportation planning and policy are discussed.
Zhenhua Chen and Kingsley E. Haynes
Transportation investment policy faces an unprecedented critical moment especially when traditional public funding sources shrink. How to allocate the limited funding source among different modes of transportation infrastructure to maintain their quality and function is not only a challenging decision, it also requires the knowledge and understanding of the relationships between transportation infrastructure and regional economic development. This study conducts a comparative assessment investigating this relationship with a focus on a multimodal perspective. Through the comparison of the authors’ previous evaluation studies conducted at different geographic scales in the US and using different data and methodologies, the regional economic impacts of different modes of transportation infrastructures are contrasted and discussed. Although transportation infrastructure is found to have a consistent positive impact on regional development across different studies, the effects vary considerably among different modes of transportation. Issues of impact assessment and policy implications are raised and discussed.
Shunsuke Segi and Kiyoshi Kobayashi
In this chapter, the authors consider a road network where a highway and a local road run in parallel and theoretically analyse the second best pricing of the highway toll. They consider how the deterioration of road structures differs between trucks and cars and how the load-bearing capacity of road structures differs between the highway and the local road. Discriminatory toll pricing of two vehicle types results in more trucks being led to the highway from the local road and the total maintenance cost of the entire road network is reduced compared to the case when the toll for cars is not raised. Cutting the toll for trucks and raising the toll for cars can maintain the toll revenue of the operator and thus is effective when the operator needs to cover its operational cost from the toll revenue.
Keisuke Sato and Atsushi Koike
The Spatial Computable General Equilibrium (CGE) model is one of the powerful tools to understand the regional economic effects on transport development. In this model, Armington elasticities are known to be important for the properties of model behavior but are seldom estimated empirically in the domestic area. Armington elasticities in multi-regional trade in Japan are estimated in this chapter. The estimated elasticities are intended for use in the Spatial CGE model for transport policy. The authors suggest that estimation is possible for Japan, for which economic data are generally considered poor, provided appropriate account is taken of transport cost.
Yoko Konishi, Se-il Mun, Yoshihiko Nishiyama and Ji-eun Sung
This chapter presents a microeconomic model of interregional freight transportation based on careful formulation of cost structure in trucking firms and market equilibrium. It takes into account the feature of transport service as a bundle of multiple characteristics. The authors estimate the parameters of the model using the microdata of interregional freight flows from the 2005 Net Freight Flow Census for Japan. Estimation results show that the determinants of transport cost incorporated in the model have significant effects in a manner consistent with theoretical predictions. The degree of competition also has a substantial effect on freight charge. Significant scale economies with respect to lot size and long-haul economies are shown to exist. The quantitative extent of these effects is also demonstrated.
Yulai Wan and Anming Zhang
An airport’s capacity is in general indivisible and hence cannot be adjusted continuously, while the demand for airport services tends to increase over time as with the growing economy. Consequently, when new runways are completed, they are likely under-utilized, but as traffic increases over time, congestion occurs. It may therefore be optimal to vary airport charges over time by keeping charges low at the early stage of the infrastructure life cycle and raising charges towards the end of its life cycle. This chapter discusses the benefits of time-dependent charges by considering the airport’s economic impacts as well as the changing economic environment, such as the unemployment level. The analysis is based on a case study of Hong Kong International Airport. The authors attempt to demonstrate quantitatively the above airport pricing strategy, and to further show how to conduct a real-case cost-benefit analysis of airport pricing for policy application.