Do Public Transport Improvements Increase Agglomeration Economies? A Review of Literature and an Agenda for Research

Public transport improvements may increase economic productivity if they enable the growth and densification of cities, downtowns, or industrial clusters and thereby increase external agglomeration economies. It has been argued that the potential agglomeration benefits are large; if so, understanding them better would be useful in making funding decisions about public transport improvements. We reviewed theoretical and empirical literature on agglomeration as well as a small number of articles on transportation's role in agglomeration. The theoretical literature is useful in understanding possible avenues by which transportation improvements might affect agglomeration, although there is little discussion of public transport specifically. Relevant empirical studies tend to focus on metropolitan regions and use a generalized measure of transportation cost. But public transport impacts on agglomeration are likely to be different from road investment impacts. We identified several ways of conducting research building on this literature that would help evaluate the agglomeration impacts of public transport proposals: tracing the links between transport, agglomeration, and productivity; better motivating research using theories of agglomeration mechanisms; taking scale and redistribution into account; exploring the functional form of agglomeration economies; accounting for endogeneity in model structure; and considering development context.     

The implications of the sharing economy for transport

ABSTRACT

The sharing economy has gained a lot of attention in recent years. Despite the substantial growth in shared services, its impact overall on transport is unclear. This paper analyses the literature on sharing in transport and includes government and consultant reports, websites and academic journals. The drivers of ride-sharing, car-sharing, car-pooling and freight-sharing are largely economic and convenience related for participants. Trust, technology platforms and the trend to avoid ownership of assets are facilitating factors in its growth. Over-regulation, inconsistent quality of service and the need for recommendation are potential barriers. The transport journals in particular are relatively slow to research this topic with more focusing on bike-sharing than other modes of vehicle sharing. The paper discusses the impact of sharing on transport suggesting it is likely to be part of a solution to transport problems and congestion perhaps in combination with other developments such as driverless vehicles. It also warns of the dangers of over-regulation and under-regulation. The future will require holistic transport strategies that consider sharing options and will require government departments to work cooperatively.     

Tales on the dark side of the transport infrastructure provision: a systematic literature review of the determinants of cost overruns

ABSTRACT

Cost overruns are an endemic feature of the provision of transport infrastructure worldwide. In recent decades, a considerable amount of studies has been devoted to assessing the magnitude and determinants of cost overruns in the transportation sector. However, the empirical findings are scattered between different strands of literature, ranging from the fields of construction engineering and management to that of applied economics. To shed light on the determinants of cost overruns in the execution of transport infrastructure projects, we conduct a systematic review of the empirical literature on the topic. Of the 945 articles retrieved, 26 articles published between 2000 and 2016 meet our inclusion criteria. For them, we describe the different empirical approaches, we provide a classification of the determinants employed in the analyses and summarise their impact on cost overruns. Finally, we suggest some directions for further research in the field.     

Applications of Random-Utility-based Multi-region Input–Output Models of Transport and the Spatial Economy

Abstract

An introduction to random-utility-based multiregional input–output models used for the purpose of spatial economic and transport interaction modelling is provided. The main methodological developments and important results of a dozen applications from the years 1996–2013 are described. This is followed by an outlook of potential future directions. Further research is mainly needed in five areas: (a) overall validation of the method, perhaps through back-casting applications on infrastructure plans with observed trade impacts; (b) extensions of trade coefficient models to add realism and improve accuracy; (c) the use of multi-scale modelling to capture interdependencies between geographical scales and to improve the representation of exports and imports; (d) improvements in the representation of price effects, as well as innovation and technological progress, by way of variable technical coefficients; and (e) a deeper investigation of the algorithm used to include elastic selling prices.     

The causal relationship between GDP and domestic air passenger traffic in Brazil

Abstract

This paper examines the causal relationship between economic growth and domestic air passenger transport in Brazil, using Granger's causality test. Total domestic passenger-kilometres are used as a proxy for air transport demand and gross domestic product as a proxy for economic growth. The test spans the period from 1966 to 2006. The results lead to the acceptance of the hypothesis that there is a unidirectional Granger causal relationship from economic growth to domestic air transport demand in Brazil, having a high elasticity in the short term.     

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.     

Transport infrastructure and regional economic growth: evidence from China

This article develops a multi-dimensions measurement of transport infrastructure and examines the linkage between transport infrastructure and regional economic growth. A panel data model is estimated using data from a sample of 31 Chinese provinces from 1998 to 2007. The results provide strong evidence that transport infrastructure plays an important role in economic growth. Both land transport and water transport infrastructure have strong and significant impacts, while the contribution of airway transport infrastructure is weak. Furthermore, land transport infrastructure contributes more to economic growth in locations with poor land transport infrastructure, while the investment in water transport infrastructure contribute positively to economic growth only after the investment scale exceeds a threshold level. These results are robust to a variety of alternative methods, the exclusion of possible outliers, and consideration of endogeneity. A retrospective analysis shows that uneven distribution of transport infrastructure is an important reason behind economic disparities across Chinese regions.     

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 spatial autoregressive panel model to analyze road network spillovers on production

The production function approach is used to introduce the effect of public infrastructure on economic growth focusing on its spillover effects. We improve the existing literature both from a conceptual and methodological perspective. As regressors we incorporate variables related to the new concepts of internal and imported transport infrastructure capital stocks, which are actually used in commercial flows, calculated by network analysis performed in GIS. The internally used capital stock represents own infrastructure that benefits accessing markets within the region itself, while the imported capital stock captures the spillover effect associated to the use of the infrastructure situated in neighboring regions. From a methodological perspective, we introduce spatial interdependence into these models, applying the most recent spatial econometric techniques based on instrumental variables estimation in spatial autoregressive panel models in comparison with Maximum Likelihood estimation methods. We illustrate the methodology with Spanish provincial panel data for the period 1980–2007. Results support the hypothesis that the imported capital has a positive spillover effect on production.     

Impact of Everyday Weather on Individual Daily Travel Behaviours in Perspective: A Literature Review

Despite the hundreds of billions of dollars being spent on infrastructure development -- from roads, rail and airports to energy extraction and power networks to the Internet -- surprisingly little reliable knowledge exists about the performance of these investments in terms of actual costs, benefits and risks. This paper presents results from the first statistically significant study of cost performance in transport infrastructure projects. The sample used is the largest of its kind, covering 258 projects in 20 nations worth approximately US$90 billion (constant 1995 prices). The paper shows with overwhelming statistical significance that in terms of costs transport infrastructure projects do not perform as promised. The conclusion is tested for different project types, different geographical regions and different historical periods. Substantial cost escalation is the rule rather than the exception. For rail, average cost escalation is 45% (SD=38), for fixed links (tunnels and bridges) it is 34% (62) and for roads 20% (30). Cost escalation appears a global phenomenon, existing across 20 nations on five continents. Cost estimates have not improved and cost escalation not decreased over the past 70 years. Cost estimates used in decision-making for transport infrastructure development are highly, systematically and significantly misleading. Large cost escalations combined with large standard deviations translate into large financial risks. However, such risks are typically ignored or underplayed in decision-making, to the detriment of social and economic welfare.     

Logistics as a driving force for development under the Belt and Road Initiative – the Chinese model for developing countries

ABSTRACT

An important objective of “the Belt and Road Initiative” is to promote the economic growth of countries in the region. China’s successful development experience, proposed in the initial stage of reform, can be summarised as “Looking for development, building the highway first”. This study is the first to evaluate whether logistics infrastructure has indeed contributed to economic growth by employing an error correction model with panel data from 2003 to 2014. In addition, we compare the influence levels of different sectors of logistics infrastructure in different regions, i.e. developed and developing regions. We focus on developing regions as they represent good development experiences for developing countries in the Silk Road Economic Belt. For developing regions, we find that the most influential factors are telecommunication and airway transportation, which should be the foci of attention in order to promote economic growth and reduce inter-region economic inequalities. The research confirms that logistics is indeed a driving force for economic growth in China, and that the contributions of specific sectors can be a useful reference for developing countries to determine prioritisation of investment in different logistics sectors across regions.     

Modal shift from road haulage to short sea shipping: a systematic literature review and research directions

ABSTRACT

Modal shift from road haulage to short sea shipping (SSS) has been advocated by authorities and researchers for more than two decades. This paper provides a review of literature on modal shift and pinpoints paths for future research on topics in six categories: (1) factors influencing SSS competitiveness, (2) the policy-oriented perspective, (3) environmental legislation, (4) SSS performance, (5) port characteristics, and (6) the multi-agent perspective. In particular, we propose first, in evaluating the performance of SSS versus road haulage in different trade corridors, three performance-related dimensions – the economic dimension (e.g. external costs), the environmental dimension, and the dimension of service quality – should be considered. Second, researchers should use rich, real-world, numerical data and operational research techniques to identify the relative importance of individual drivers and barriers for a modal shift from road haulage to SSS. Third proposed direction is related to assessing which groups of actors certain policies should target. In doing so, researchers should extend their policy-related focus beyond the European Union, which has long encompassed the major geopolitical scope of research on the modal shift. Fourth, to moderate the adverse impact of environmental legislation on SSS, strategic solutions need to be identified. Fifth, we also suggest that the influence of contingencies, particularly port strikes and cyberattacks, on SSS operations and approaches for managing them should be investigated. Sixth, the economic and financial advantages of coordination and alliance for each transport chain agent need to be evaluated.     

The influence of the road network on private productivity measures using Data Envelopment Analysis: A case study from Spain

We evaluate the economic effects of investment in the road network on private regional activity. We employ provincial Spanish panel data from 1980 to 2007 to perform non-parametric frontier techniques based on Data Envelopment Analysis and to obtain the Malmquist productivity indexes, thus enabling us to examine the evaluation of the productivity growth via technological changes or efficiency gains. Additionally, we analyze the role of transport infrastructure on the evolution of Total Factor Productivity and its components through econometric techniques. Our results show important spillover effects. Moreover, our findings have significant implications for policy makers if we take into account the fact that the use of the road network in economic activity or in commercial relations greatly influences productivity growth.     

Older People's Mobility: Segments,Factors, Trends

Abstract

The expanding older population is increasingly diverse with regard to, for example, age, income, location, and health. Within transport research, this diversity has recently been addressed in studies that segment the older population into homogeneous groups based on combinations of various demographic, health-related, or transport-related factors. This paper reviews these studies and compares the segments of older people that different studies have identified. First, as a result of a systematic comparison, we identified four generic segments: (1) an active car-oriented segment; (2) a car-dependent segment, restricted in mobility; (3) a mobile multi-modal segment; (4) and a segment depending on public transport and other services. Second, we examined the single factors used in the reviewed segmentation studies, with focus on whether there is evidence in the literature for the factors’ effect on older people's travel behaviour. Based on this, we proposed a theoretical model on how the different determinants work together to form the four mobility patterns related to the identified segments. Finally, based on current trends and expectations, we assessed which segments are likely to increase or decrease in future generations of older people and what should be done to support the multi-optional and independent mobility of older people.     

Intermodal transport in freight distribution: a literature review

There has been significant growth in research on intermodal transport in freight distribution since the 1990s. Differentiating itself from previously published literature reviews, this paper evaluates the current state of this research using Systematic Literature Review methodology. The complementary aims are: (a) to identify the research lines developed and to propose a criterion for classifying the literature, and (b) to discuss the empirical evidence that identifies existing interrelationships. The analysis has enabled three main lines of research to be identified. The first research line, basic principles of intermodal transport, groups together works related to the definition of intermodal transport and the results obtained using this transportation system. The second, improvements to the way that intermodal transport systems work, frames elements and variables that impact intermodal transport systems’ logistics efficiency, such as quality of service, information and communication systems, and freight planning and linkages among system operators to provide an adequate service. Finally, the third line, intermodal transport system modelling, identifies the main variables used to optimise these transport systems, the different focuses and approaches used in modelling, and the advantages and disadvantages of each focus. These research lines take in more specific sublines that incorporate articles that develop related research questions. Lastly, the discussion of the content of each of these research sublines enables us to identify gaps in the literature and comment on directions for future research.     

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.     

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.     

Persistence of walking in Chile: lessons for urban sustainability

ABSTRACT

An extensive body of work from the urban planning, health, and other disciplines has documented the importance of walking to urban sustainability from health, safety, security, environmental and other perspectives. These studies come mainly from countries in North America and Europe, where the majority of the population relies on cars for transportation. Notwithstanding, in many countries in the Global South, walking remains a majority transport mode, while cars increasingly dominate the urban streetscape, but are accessible only to a minority of the population. Chile provides fertile terrain for studying this phenomenon. This article reviews current practice and recent research of walking in Chile, in light of international findings regarding walkability, equity and urban sustainability. To elaborate an overview of the depth and breadth of walking in Chile, an interdisciplinary team conducted a literature review, examined relevant case study material from experience from Chile and in particular from Santiago, and triangulated this mainly qualitative data with results from the origin-destination survey applied in Chile’s main cities, Chilean traffic safety data) and results from official transport reports of other Latin American cities [Tirachini, A. (2019). South America: The challenge of transition. In J. Stanley & D. Hensher (Eds.), A research agenda for transport policy. Northampton, MA: Edward Elgar Publishing]. Findings show that despite priority public investments that have largely prioritised infrastructure for cars, walking in Chile has remained as the majority transport mode up until today, especially for lower-middle income groups, and particularly for care-related tasks performed mainly by women. In this sense, walking in Chile has proven remarkably persistent. The importance of walking as the main transport mode, against the odds, reflects economic, cultural, and urban form determinants, which are explored in this article. Furthermore, a recent upsurge in public interest and community design initiatives to improve walking, particularly the generation of a Chilean approach to “complete streets” has emerged, opening up opportunities to challenge Chile’s version of automobility in favour of more equitable, active and public transportation modes. There is, therefore, in Chile an opportunity to prioritise the walking mode, improve infrastructure for walkers and build from preserving current high pedestrian modal shares, rather than having to reverse widespread car use, as occurs in many countries in Europe and North America. This potential is highly relevant as these conditions are similar to those in other Latin American cities and, potentially, other cities elsewhere in the Global South.     

Well-being and Transport: Taking Stock and Looking Forward

ABSTRACT

It is only recently that researchers have attempted to directly link transport to models of well-being and in turn try to map transport's linkages to well-being outcomes. This paper seeks to add to this new literature by introducing a dynamic model of well-being, which highlights the different domains that make up well-being, and in turn — through providing one of the most holistic and comprehensive discussions of the current well-being literature — provide an evaluation of our current understanding of transport's relationship to well-being. The paper also seeks to highlight the different dimensions and complexities of seeking to monitor and improve well-being through transport policy. It will in turn be argued that the varied and complex sets of outcomes that arise from transport policy interventions, and the multiple ways in which they affect well-being, make a well-being approach (that measures policy outcomes in terms of units of well-being) of particular value for policy-makers. However, due to the complexities in comparing positive well-being outcomes, it is argued that the best use of well-being evidence for the transport sector may be to try to minimise the negative effects on well-being caused by policy outcomes.     

Identifying Governance Relationships Between Intermodal Terminals and Logistics Platforms

Abstract

Governance theory examines different ways of managing resources and relationships in order to achieve a desired outcome. This paper applies governance theory to intermodal terminals and logistics platforms, extending previous work on ownership to include different operational models. An inductive methodology is used to derive a typology of governance relationships from an analysis of the transport and logistics literature. The classification developed in this paper explores different kinds of integration that can help support growth of intermodal transport services. The understanding of transport governance is extended via three key relationships: first, between the logistics platform and the site tenants (therefore, encouraging consolidation and efficiencies that can boost rail services at the site); second, between the terminal operator and rail service provision (which can aid service planning and train loading factors); and third, between the inland site (either terminal, logistics platform or both) and port(s), (thus enabling better planning and efficiency of port rail shuttles).