Social Impacts of Transport: Literature Review and the State of the Practice of Transport Appraisal in the Netherlands and the United Kingdom

Abstract

Transport appraisals in European countries increasingly address three dimensions of sustainability—economic, ecological and social. However, social impacts of transport have been underexposed in (ex‐ante) transport project appraisal, at least in the Netherlands. Firstly, this article presents a theoretical framework describing the relationships between determinants of social impacts of transport; it also provides a definition and categorization of those impacts. Secondly, the article reviews the state of the practice of national transport project appraisal in the Netherlands and the United Kingdom. The article shows that social impacts of transport investments can take on many forms and their levels of importance may vary widely, in project appraisal. The UK transport appraisal guidance includes a spectrum of social impacts through quantitative and qualitative assessments that is broader than the Dutch appraisal guidance. However, it does not cover the full range as identified in the literature. This holds, in particular, for the temporary impacts of transport investments, health impacts, social cohesion, the distribution and accumulation of impacts across population groups and social justice. All in all, it can be concluded that there is a long way to go before social impacts of transport projects are completely included in appraisals, in a way that allows us to compare them to economic and ecological effects.     

Sustainability Assessment of Transport Infrastructure Projects: A Review of Existing Tools and Methods

Abstract

Attempts to integrate sustainability in the decision-making process for transport infrastructure projects continue to gain momentum. A number of tools and methodological frameworks are available — such as rating systems, traditional decision-making techniques, checklists, and different evaluation frameworks and models. While these tools are highly valuable, some practical issues remain unsolved. There is also a need for more standardized tools to appraise the sustainability of transport projects. This paper is a presentation of a review on the current assessment tools of sustainability applied to transport infrastructure projects. The preliminary part of the paper is an explanatory and comparative analysis of the tools and methods in terms of their effectiveness to appraise sustainability. The analysis is a critical evaluation of the current state of the art to identify the limitations of existing approaches, point out new areas of research, and propose a sustainability appraisal agenda for the future.     

Efficiency of European Funds in the Accession Countries: The Case of Transport Infrastructure Investments in Latvia

ABSTRACT

A transport initiative, like any kind of public action, has an impact on the monetary cost, time cost, efficiency and comfort of the transportation of goods and people, in particular transport infrastructure investments. All such initiatives are subject to cost benefit analyses at the national and EU level to know whether the present value of total net benefits including environmental impacts exceeds their cost. However, several important policy issues remain unresolved in standard evaluation procedures. One issue is whether the so-called direct measurement of user benefit, which consists of quantifying changes in surplus of the users of the transport system, captures all welfare generated in the economy. Another issue is how the gains (or possibly losses) of a transport initiative are distributed among regions. The aim of this article is to perform a systematic and quantitative analysis of the socio-economic and spatial impacts of alternative transport investments by carrying out scenario simulations in order to improve the understanding of the impact of transportation policies on the short- and long-term spatial development in Latvia. The general result from the scenario simulations is that rail projects seem to be more effective in terms of promoting regional economic activity than road projects.     

Migration of railway freight transport from command economy to market economy: The case of China

In recent years, Chinese railway freight transport has been facing great challenges from transport market reformation and economic expansion. Although the total volume of railway freight has been increasing, its market share has decreased greatly, especially at the beginning of migration from command economy to market economy. This paper considers four aspects believed to be responsible for the loss of the railway freight market share. First, we review the history and current situation of the Chinese railway freight transport and study the relationship between economic development and freight transport in China. Second, the causes resulting in the loss of the market share of railway freight are analysed in detail. Third, the current measures taken by Chinese Railways (CR) to restore its competitiveness are discussed. The effects of these measures on railway traffic volume, market share and productivity are also studied. Finally, the way forward for the future of CR is discussed. It is concluded that CR has not yet adapted sufficiently to new economic conditions, although in recent years progress has been made. Further reform will be needed.     

A new composite decision support framework for strategic and sustainable transport appraisals

This paper concerns the development of a new decision support framework for the appraisal of transport infrastructure projects. In such appraisals there will often be a need for including both conventional transport impacts as well as criteria of a more strategic and/or sustainable character. The proposed framework is based on the use of cost-benefit analysis featuring feasibility risk assessment in combination with multi-criteria decision analysis and is supported by the concept of decision conferencing. The framework is applied for a transport related case study dealing with the complex decision problem of determining the most attractive alternative for a new fixed link between Denmark and Sweden – the so-called HH-connection. Applying the framework to the case study made it possible to address the decision problem from an economic, a strategic, and a sustainable point of view simultaneously. The outcome of the case study demonstrates the decision making framework as a valuable decision support system (DSS), and it is concluded that appraisals of transport projects can be effectively supported by the use of the DSS. Finally, perspectives of the future modelling work are given.     

The digital revolution and worthwhile use of travel time: implications for appraisal and forecasting

Savings in travel time and more specifically their monetary value typically constitute the main benefit to justify major investment in transport schemes. However, worthwhile use of travel time is an increasingly prominent phenomenon of the digital age. Accordingly, questions are increasingly being asked regarding whether values of time used by countries around the world based on their appraisal approaches are too high. This paper offers the most comprehensive examination of our theoretical and empirical understandings of international appraisal approaches and how they account for worthwhile use of travel time. It combines the economics perspective with wider social science insight and reaches the conclusion that past revolutions in transport that have made longer and quicker journeys possible are now joined by a digital revolution that is reducing the disutility of travel time. This revolution offers potential economic benefit that comes at a fraction of the cost of major investments in transport that are predicated on saving travel time. The paper highlights the challenges faced in both current and indeed potential alternative future appraisal approaches. Such challenges are rooted in the difficulty of measuring time use and productivity with sufficient accuracy and over time to credibly account for how travel time factors into the economic outcomes from social and working practices in the knowledge economy. There is a need for further research to: establish how improvements in the opportunities for and the quality of worthwhile use of travel time impact on the valuation of travel time savings for non-business travel; improve our understanding of how productive use of time impacts on the valuation of time savings for business travellers; and estimate how these factors have impacted on the demand for different modes of travel.     

An assessment of advanced transport telematics evaluation procedures

This paper reviews and critically assesses procedures which have been adopted to evaluate Advanced Transport Telematics (ATT) projects. The importance of such a review at this juncture stems from the changing position of ATT in transport planning. ATT is no longer simply a field for experimentation, where technical feasibility and user acceptance are dominant concerns. Rather it is a potential mainstream contributor to the functioning of road transport systems. For this reason, ATT project appraisal needs to be developed to the same form, level of sophistication and consistency as the appraisal of conventional transport infrastructure investment. Based on the review set out here, we argue that appropriate methods have not yet been established which, in turn, poses a number of challenging questions, since current socio‐economic evaluation procedures are not directly suited to either measuring or evaluating many of the impacts which ATT schemes are implemented to achieve.     

The Myth of Travel Time Saving

Abstract

The idea that the main benefit of improvements to transport infrastructure is the saving of travel time has been central to transport economic analysis. There is, however, little empirical evidence to support this proposition. Indeed, in the long run average travel time is conserved, implying that travellers take the benefit of improvements in the form of additional access to more distant destinations made possible by higher speeds. Such a perspective, based on considerations of the value of access, has implications for economic appraisal, modelling and policy.     

Introducing Willingness‐to‐pay for Noise Changes into Transport Appraisal: An Application of Benefit Transfer

Abstract

Numerous research studies have elicited willingness‐to‐pay values for transport‐related noise. However, in many industrialized countries including the UK, noise costs and benefits are still not incorporated into appraisals for most transport projects and policy changes. This paper describes the actions recently taken in the UK to address this issue, comprising: primary research based on the city of Birmingham; an international review of willingness‐to‐pay evidence; the development of values using benefit transfers over time and locations; and integration with appraisal methods. Amongst the main findings are: that the willingness‐to‐pay estimates derived for the UK are broadly comparable with those used in appraisal elsewhere in Europe; that there is a case for a lower threshold at 45 dB(A)Leq,18h rather than the more conventional 55 dB(A); and that values per dB(A) increase with the noise level above this threshold. There are significant issues over the valuation of rail versus road noise, the neglect of non‐residential noise and the valuation of high noise levels in different countries. Conclusions are drawn regarding the feasibility of noise valuation based on benefit transfers in the UK and elsewhere, and future research needs in this field are discussed.     

New waves in transportation in North‐Eastern Europe

North‐Eastern Europe is a peripheral area around the Baltic Sea. In some parts i.e. Scandinavia high living standards including developed transport systems exist when at the same time rapid changes in the way of living in other parts ‐ Poland, the Baltic Countries and Russia ‐ are ongoing. Transport policies in the European Union are caught between demands for improved mobility and the concern on the environmental protection. In the former socialist countries the environmental issues are subdued by the demands for efficient transport. A fixed road and rail connection between Denmark and Sweden will change the transport geography of the western part of the area. Also the integration of the Baltic States and Poland to the Union will inside a few years change the economic and by that way also transport structure. After a short presentation of the geography and history the current European transport landscape will be described and current transport policies reviewed. Then some topics on the major changes during the last decennia as well as future studies will be presented. The paper draws heavily from the research projects ‐ SAMI, START and STEMM ‐ financed by the European Commission DGVII.     

Incorporating equity as part of the wider impacts in transport infrastructure assessment: an application of the SUMINI approach

The state of the art in appraisal of transport infrastructure (particularly for developed countries) is moving towards inclusivity of a set of wider impacts than has traditionally been the case. In appraisal frameworks generally Multi-Criteria Analysis (MCA), features as either an alternative to, or complementary with, Cost Benefit Analysis (CBA) particularly when assessing a wider set of distributional and other impacts. In that respect it goes some way towards addressing an identified weakness in conventional CBA. This paper proposes a new method to incorporate the wider impacts into the appraisal framework (SUMINI) based upon a composite indicator and MCA. The method is illustrated for a particular example of the wider set of impacts, i.e. equity, through the ex-post assessment of two large EU transport infrastructure (TEN-T) case studies. The results suggest that SUMINI assesses equity impacts well and the case studies highlight the flexibility of the approach in reflecting different policy or project objectives. The research concludes that this method should not be viewed as being in competition with traditional CBA, but that it could be an easily adopted and complementary approach. The value in the research is in providing a new and significant methodological advance to the historically difficult question of how to evaluate equity and other wider impacts. The research is of strong international significance due to the publication of the TEN-Ts review by the European Commission, as well as the transnational nature of large scale interurban transport schemes, the involvement of national and transnational stakeholder groups in the approval and funding of those schemes, the large numbers of population potentially subject to equity and other wider impacts and the degree of variation in the regional objectives and priorities for transport decision makers.     

Transport planning in Hungary: a case study of Pécs

This review emerged from an opportunity provided in 1988 to the author to study the process of Hungarian transport planning in general, and that of the major regional city of Pécs in particular.

It begins by outlining the difficulties of obtaining detailed information on transport policy‐making and planning in Eastern Europe, and then goes on to analyse the situation in Hungary as a whole since the early 1960s. The specific situation in Pécs is then discussed in relation to national transport planning, with detailed case studies drawn from problems on the local and regional road network, the growth in car ownership and usage, the development of local and inter‐regional rail services, the provision of adequate local bus services, and the growth of local taxi services.

The problems stemming from State intervention and planning control in local transport are emphasized, as are the increasingly difficult issues of the Hungarian economy in constraining public investment. The paper concludes with a discussion of the relationship of the problems of Pécs with those of urban areas elsewhere in Europe, and emphasizes the particular difficulties faced by East European planners in the future.     

International logistics in Lithuania at a time of transition

This paper examines the current situation in the largest of the Baltic States - Lithuania - with respect to the development of international transport and logistics in the context of the severe political, economic and social changes that have taken place since 1991. Utilizing statistics previously unavailable for the region, the paper examines the impact of transition and the competitive role of East European carriers upon a specific international movement of electronic goods between Frankfurt/Main in Germany and Vilnius in Lithuania, developing a detailed cost model for the alternative modal choices that are available - road and ship/road. Rail transport is excluded as no international rail services between the two countries are available and there are no plans for such services in the near future. From this, a series of issues for the future in the context of potential EU membership, transport infrastructure developments and logistical trends is analysed.     

Framing the Nexus of Globalisation,Logistics and Manufacturing in Europe

Abstract

Under the ongoing influence of globalisation, supply chains have changed significantly. New logistics and manufacturing systems have emerged, causing longer transport distances and increasing transport emissions. The existing research into the sustainability impacts of freight transport has largely viewed it as being a macro-level economic and political phenomenon and has ignored the interdependencies amongst micro-level economic actors, including firms and businesses in the private sector. In this paper, we presume that the lack of conceptualisation of freight transport in relation to wider institutional contexts and firm behaviour results in the lack of a holistic approach to understanding freight governance in the face of globalisation. We argue for the use of institutional economic geography lenses to elucidate the distribution networks of emerging logistics and manufacturing practices and its implications for freight transport. We illustrate our argument through a broad look at the European logistics and manufacturing practices and global production.     

European freight transport and the environment: empirical applications and scenarios

Environmental issues have received a prominent place in transport policies of most European countries. The coordination of such policies however, is fraught with many difficulties. The increasing freight flows after the European integration are a source of concern, but have not yet led to straightforward and effective environmental strategies.The paper focuses on the Trans Alpine freight transport systems in the light of the future integration of single national transport systems into the European transport network. The environmental, social and institutional peculiarities of this ‘region’ have favoured—in the past—the development of strong nationally-oriented policies, partly in contrast with the goals promoted by the European Union. The present analysis aims to highlight opportunities, and limits inherent, in the implementation of various infrastructure projects oriented towards a drastic change of the Alpine transport systems structure. The Alpine countries, viz. Austria and Switzerland, play a central role in the promotion of environmental benign modes of transport of goods, with a clear focus on rail. The route choice and modal split of freight flows in Europe are taking place simultaneously. In this paper the results of European freight flow models (based on logit analysis and neural networks) will be presented. An important exercise is then to assess the consequences of various types of eco-taxes on road transport in Europe. In this context, several policy scenarios will be dealt with.     

The Movingo integrated ticket: seamless connections across the mälardalen region of Sweden

ABSTRACT

The need for improved public transport (PT) ticketing in ever-growing deregulated PT markets has made well-designed integrated ticketing systems a priority area of intervention for PT service providers around the world. Yet, very little practical evidence of its impacts are reported in Sweden and in the world at large. The focus of this study was the impacts of the Movingo integrated ticketing scheme in terms of PT patronage, user satisfaction and the perceived quality of the ticketing set-up. Three travel surveys were conducted along the Stockholm-Uppsala route. Methods including logistic regression and correlated t-tests were used to analyse the samples. The findings suggest that the scheme made rail commuting more attractive resulting in an overall increase of about 24% in ticket sales with 3% – 15% car commuters reporting that they patronised PT services after the project. The scheme also resulted in increased rail commuter satisfaction. The overall perceived quality of the ticketing set-up did not however improve due to interoperability challenges. Service providers’ uncertainty about equitable distribution of revenue among the participating service providers, interoperability challenges and the lack of interest among most of the participating service providers to sell Movingo tickets are some issues to be addressed.     

Air transport and economic growth: a review of the impact mechanism and causal relationships

ABSTRACT

The impacts of air transport on the economy arise both directly, via activity in the aviation sector; and indirectly, via increased spending and wider economic benefits associated with improved access to resources, markets, technology and economic mass. Economic activity, in turn, supports and generates demand for air transport. Despite its potential importance, the reciprocal nature of the causal relationship between air transport and economic performance has remained somewhat understudied. This paper provides a synthesis review of the channels the aviation sector interacts with regional economy. The review focuses on quantitative studies that contribute to the state-of-the-art understandings of the causality. We find that the reciprocal causal relationship is more likely to prevail in less developed economies. For more developed economies, only one direction of the causality is recognised, which runs from air transport to economic growth. Especially substantial is the effect of airline enplanement on service-related employment. The reverse direction of the relationship is, however, not as significant as believed in a causal sense within the developed world. Therefore, cautions need to be taken when applying income elasticities (such as the elasticity of air passenger demand with respect to GDP) in air travel demand forecasting, which implicitly assumes that economic growth causally leads to air traffic increment. Based on the fundamental links between air transport and economic growth, some typical imperfections and inefficiencies in aviation markets are discussed and promising avenues for future research are proposed.     

Tracks to Change or Mixed Signals? A Review of the Anglo-Saxon Literature on the Economic and Spatial Impacts of High-Speed Rail

ABSTRACT

The economic development and spatial impacts of high-speed rail (HSR) are quite varied and mixed. Studies of economic impacts of HSR fall into two categories: predictions and empirical observations. We first review studies that examine predicted HSR impacts related to job growth, real estate development, and other economic effects. These are followed by studies examining observed effects of realized projects using the same categories. Several patterns emerge. Predictive studies are largely optimistic of the rail's positive effects. On the other hand, observational studies tend to identify both benefits and shortfalls. Yet, neither of these patterns are universal and depend on a number of other factors. One consistent pattern is that gains associated with HSR appear to be stronger in first-tier cities. Nevertheless, certain small towns and second-tier cities have undergone noteworthy transformations as a result of HSR, especially where the public sector has actively pursued new investment.     

Transport integration of Slovenia with the European Union

Today, the extended transport infrastructure along with the communications and information technologies are to a large extent the generator of integration processes all over Europe. Novelties in this area have brought about important changes in the production conditions, distribution and consumption, which exert influence on the changing of economic structure, including similar changes in social, cultural and political relations. In the future, the social and economic development of Slovenia will depend on proportionate development of regions and on the embodiment of Slovenia in a wider European space. The transport infrastructure of Slovenia, along with its transport system, should be integrated in the European transport system in such a way that the developmental interest of Slovenia is fully highlighted and included to an optimum extent in the course of Slovenia's integration to the EU.     

Environmental considerations of land transport in developing countries (part 2)

Developing countries have unique problems and needs which must be considered when attempting to identify and evaluate the environmental impacts of land transport. This paper presents a review of the relevant literature that can be used to identify, evaluate and mitigate environmental impacts of land transport facilities (development and operation) in developing countries. After examining the relevant characteristics of land transport development in such countries, the paper discusses the environmental effects. Controls and countermeasures associated with each category of impacts are also reviewed under the broad categories of air, noise and water pollution as well as land use changes and social and ecological impacts. Issues concerning environmental impact assessment/analysis process and transport of hazardous materials are then addressed. The procedures established by the World Bank for the environmental assessment of Bank‐financed projects are mentioned. The paper concludes with a brief discussion of the responsibilities of the developing countries in meeting the growing challenge of environmental degradation.