Edited by Robin Hickman, Moshe Givoni, David Bonilla and David Banister
A major weakness of much of current appraisal practice of transport infrastructure projects is its basis on partial equilibrium analysis. The partial equilibrium approach implies that only the changes within the transport market are taken into account in the assessment of a given infrastructure project (e.g., time savings for transport users, reduced operating costs for transport producers and infrastructure construction costs), whereas linkages between the transport market and other markets (notably goods and labour markets) are to a large extent ignored. The importance of ignoring other markets in transport appraisal has been subject to much analysis in the available literature (see, e.g., SACTRA, 1999). A key research question is whether such wider economic impacts are additional to the time and cost savings generated from transport policy interventions. If such impacts are additional it could change the overall assessment of whether transport projects are worthwhile or not. Three principle issues are relevant (Goodwin and Persson, 2001): ● Traditional economic theory suggests that wider economic benefits are mostly not additional to the time and cost savings that generated them, but only a change in the form and incidence of these benefits. Inclusion of wider economic impacts in a cost benefit analysis (CBA) would therefore create double-counting. ● Newer economic theories dispute this, suggesting that there can be wider economic effects with additional value – but these can involve benefits or disbenefits.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.