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.     

Simulating deep CO2 emission reduction in transport in a general equilibrium framework: The GEM-E3T model

Transport sector restructuring to achieve deep GHG emission cuts has attracted much attention because transportation is important for the economy and inflexible in greenhouse gas emission reduction. The aim of this paper is to simulate transition towards low carbon transportation in the European Union until 2050 and to assess the ensuing macroeconomic and sectorial impacts. Transport restructuring is dynamically simulated using a new transport-oriented version of the computable general equilibrium model GEM-E3 which is linked with the PRIMES-TREMOVE energy and transport sectors model. The analysis draws from comparing a reference scenario projection for the EU member-states up to 2050 to alternative transport policy scenarios and sensitivities which involve deep cutting of CO₂ emissions. The simulations show that transport restructuring affects the economy through multiple channels, including investment in infrastructure, the purchasing and manufacturing of new technology vehicles, the production of alternative fuels, such as biofuels and electricity. The analysis identifies positive impacts of industrial activity and other sectors stemming from these activities. However, the implied costs of freight and passenger transportation are of crucial importance for the net impact on GDP and income. Should the transport sector transformation imply high unit costs of transport services, crowding out effects in the economy can offset the benefits. This implies that the technology and productivity progress assumptions can be decisive for the sign of GDP impacts. A robust conclusion is that the transport sector decarbonisation, is likely to have only small negative impacts on the EU GDP compared to business as usual.     

Modelling and simulation of transportation system effectiveness to reduce traffic congestion: a system dynamics framework

ABSTRACT

This paper is designed to evaluate and improve the effectiveness of transportation systems and reduce traffic congestion through the use of simulation models and scenario development. A system dynamics framework is used to test and evaluate the alternatives of future strategies for the city of Surabaya, Indonesia. Some factors affecting the effectiveness of transport systems include operational effectiveness and service effectiveness, as well as uncertainty. To improve the effectiveness of transportation systems, several strategies can be implemented, such as subsidizing public transportation, increasing the cost of private vehicle parking fees, raising taxes on private vehicles, and reducing delays in public transportation through scenario development. Scenario results show that, by pursuing these strategies, effectiveness could be improved by 80% as the impact of the increase in operational and service effectiveness, helping to mitigate traffic congestion. Congestion could be reduced to 70% (on average) due to the decrease in daily traffic.     

Assessing the employment agglomeration and social accessibility impacts of high speed rail in Eastern Australia

There is growing interest in establishing additional evidence, under the umbrella of the wider economy impacts of transport infrastructure projects, to support transport projects in general and public transport projects in particular that struggle to obtain benefit–cost ratios sufficient to gain the support of financial agencies. This paper focuses on one element of wider economy impacts, often referred to as effective economic (employment) density or employment agglomeration impacts, and another, less usually identified, social accessibility impact (SAI) which we refer to as effective social density, which in broad terms provide, correspondingly, evidence of the potential gains in work-related output (often referred to as productivity gains) and potential gains in non-work-related outputs. Both are associated with gains in individual and household benefit attributable to improved accessibility to services linked with populations and particular locations. The SAIs may capture some of the induced benefits in those jurisdictions where these are included routinely in benefit–cost analysis, and the methodology here is most appropriate to those settings where an existing calibrated demand curve may not be available. Using the proposed high speed rail (HSR) project between Sydney and Melbourne as the empirical setting, we identify economic agglomeration and social accessibility benefits for work and non-work related activity respectively. We find the former to be relatively small compared to the significant gains associated with non-work related travel activity, suggesting the greatest benefits associated with HSR, especially for those residents outside of the major metropolitan areas, will be non-work related travel activity.     

Role of transport in rural development in Africa

Rural Africa is starved of transport services. The transport routes run towards the export enclaves and the coast.

The political, social and developmental rural transport benefits are discussed. Rural transport will help (i) integrate the country and ease its governance; (ii) widen markets; (iii) induce increased agricultural output, through new technologies, reduced transport costs, etc. The transport cost savings should be passed on to rural firms and producers. The paper warns against their accruing only to middlemen — agricultural parastatals inclusive, thereby stifling the benefits to production. This could happen under some forms of pan‐territorial pricing. Negative aspects of road development, e.g. the substitution of local goods by imports, increased migration and noise, are noted.

The place and role of project appraisal in rural road planning is acknowledged. The broad‐based development packages approach associated with Integrated Rural Development Projects has, despite its attractions, some pitfalls. It favours well established villages and ignores distribution benefits within villages.

Project appraisal can be used to justify socially uneconomic transport developments. However, rural road investment projects with immediate negative returns are unlikely to be funded. Given clear priorities, short of elaborate cost/benefit analysis, obvious road investments choices can be made by the local community. Greater public accountability of transport planners and peoples’ participation in determining rural transport needs and priorities is emphasized. Increased rural road maintenance especially through self‐help schemes and increased use of traditional modes of transport, e.g. walking, animal and water transport, is recommended.     

Technological innovations in the transport sector: the need for cooperation to meet environmental interests

Environmental problems have become urgent in many countries. A large contribution to the solution of environmental problems is expected from technological change. This raises the issue of how technological change takes place, and more in particular how technological change can be promoted that is beneficial to long term sustainability objectives.

In the paper we discuss this topic in the context of the transport sector. This is relevant because transportation contributes significantly to various types of pollution, existing trends might lead to even more negative impacts and finally there are high expectations about the potential of future technological development to reduce the environmental impact of transportation.

We approach the issue of technological change towards more environmentally sound development from the perspective of technology dynamics and sustainable development. We argue that additional theoretical insights are needed especially when one wants to study technological change in the context of environmental problems. We therefore discuss a strategy of cooperation between government and firms in network. Special attention is paid to the role of the government in networks and the use of a new type of instruments.     

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.     

Ranking of regional road investment in Norway

This paper explores the priorities for road investments in Norway, with particular emphasis on the use of benefit-cost calculus. The author tests whether the observed rankings of the Ranking Road Agencies are explained and/or influenced positively by the benefit-cost ratio. Second, based on a questionnaire survey, the tradeoff made by Regional Road Authorities between an economic welfare maximizing strategy and the observed strategy in analysed. Benefit-cost ratio is found to be a significant explanatory variable in only four out of fifteen regions. In only one region does benefit cost ratio explain more than 30 percent of the observed variation. The trade-off analysis demonstrates that ranking by benefit-cost ratio if adopted gives formidable return as compared to the observed rankings. The reasons given by the Regional Road Agencies for not ranking investment projects according to benefit cost ratio is that several important impacts are not valued monetarily and therefore are not included in the benefit-cost-ratio. The results of the questionnaire survey give reasons to doubt the Regional Road Agencies understanding of the welfare maximizing principles of benefit cost calculus. Concluding remarks on the observed behaviour of the Regional Road Agencies are also offered.     

Ex-Post Evaluations of Demand Forecast Accuracy: A Literature Review

Abstract

Travel demand forecasts play a crucial role in the preparation of decision support to policy-makers in the field of transport planning. The results feed directly into impact appraisals such as cost–benefit analyses and environmental impact assessments, which are mandatory for large public works projects in many countries. Over the last few decades, there has been increasing attention given to the lack of demand forecast accuracy. However, since data availability for comprehensive ex-post appraisals is problematic, such studies are still relatively rare. This study presents a review of the largest ex-post studies of demand forecast accuracy for transport infrastructure projects. The focus is threefold: to provide an overview of observed levels of demand forecast inaccuracy, to highlight key contextual and methodological differences between studies and to highlight key focus areas for future research in this field. The results show that inaccuracy remains problematic for road, rail and toll projects alike, but also how the lack of methodological clarity and consistency calls for a careful interpretation of these results. Mandatory, systematic ex-post evaluation programmes are suggested as a necessary tool to improve decision support, as data availability for ex-post studies is often remarkably poor even for internal audits.     

Regulation of the informal transport sector in Rio de Janeiro,Brazil: welfare impacts and policy analysis

In Brazil, the explosion of informal transport activity during the past decade has had profound effects on formal public transport systems and is a source of great controversy in the urban transportation sector. A variety of policies have been proposed to manage the growth of the sector. This study seeks to understand how proposed policies will impact the users of these systems. A corridor in Rio de Janeiro with substantial informal activity was used as a case study. Measures of welfare changes in a discrete choice framework were used to estimate proposed policies’ impacts on users. Eleven candidate policies were evaluated, ranging from the eradication of the informal modes and investment in formal modes, to the legalization of the informal modes. Benefits were compared with costs and the distribution of benefits across income classes was explored. Net benefits from some policies were found to be substantial. Legalizing the informal sector was found to benefit users slightly but further investments in the sector are probably inefficient. Users benefited most from improvements in formal mass transit modes, at roughly 100–200 dollars per commuter per year. Finally, policies to foster a competitive environment for the delivery of both informal and formal services were shown to benefit users about 100 dollars per commuter per year. Together, the regulation of the informal sector and investments in the formal sector serve to reinforce the movement towards competitive concessions for services and help reduce the impacts of cartelization and costly in-road competition.

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.     

Towards a more equitable distribution of resources: Using activity-based models and subjective well-being measures in transport project evaluation

In this paper, we develop an innovative and comprehensive transport evaluation criterion to better account for equity considerations in transport project evaluation. This work explores transportation benefits from the consumer’s perspective to accessibility as a key benefit generated by any transportation project. To assess the full benefits of transportation project implementation for various consumers and calculate the improvement in accessibility, it is best to use Activity-Based Models (ABM). ABMs have two important advantages for equity analysis, which have not been utilized in the literature so far: first, ability to analyze results by various groups of the population; second, these models can utilize the Activity Based Accessibility (ABA) measure to estimate the overall benefits from transport investments and policies. The ABA measure allows one person to have different accessibilities for different choice situations, depending on his/her characteristics. We suggest including social and spatial factors in social welfare assessment by introducing the concept of accessibility gains to key social activities. Specifically, it is suggested to incorporate subjective well-being consideration into a new evaluation framework “Equity Benefit Analysis” (EBA). we use an alternative measure, “Subjective Value of Accessibility gains” (SVOA), which is based on the ABM accessibility measure as well as on Subjective Well-Being (SWB) measure, as the key benefit taken into account in the evaluation process. The SVOA is not intended to replace the current practice of analyzing equity by comparing various impacts on different groups of the population, but can aid by providing policymakers with a single measure advancing both equity and efficiency considerations and facilitating comparison among alternatives. Initial case study results indicate the SVOA can show higher benefits to policies focusing on the needs of vulnerable social groups that compared traditional measures.     

Appraising large-scale investments in a metropolitan transportation system

A package of large-scale investments in the transportation infrastructure in the Stockholm metropolitan region is currently being proposed. It contains new investments in the railway and subway systems as well as new links in the road system. This paper deals with the issue of appraising this kind of investment program. One major problem is the lack of a unique standard method, and it is argued that several tools should be used in a practical evaluation of large-scale investments in the transportation system.Four different approaches are presented and related to each other. First, one study uses a network-based mode-split/assignment model with a fixed trip matrix. The second study is complementary, as its aim is to also trace the impacts on the spatial distribution of population and jobs by applying an integrated transportation and land use model. Third, the long-run effects of the investments on regional economic growth are discussed within the framework of regional production functions. Fourth, an alternative approach is used, in which benefits from the investments are assessed through their estimated influence on aggregate land values.Abbreviations RA Reference Alternative - IP Investment Proposal - IMREL Integrated Model of Residential and Employment Location - RPFM Regional Production Function Model An earlier version of this paper was presented at the 31th European Congress of the Regional Science Association, Lisbon, August 1991.     

Cost overruns in transportation infrastructure projects: Sowing the seeds for a probabilistic theory of causation

Understanding the cause of cost overruns in transportation infrastructure projects has been a topic that has received considerable attention from academics and the popular press. Despite studies providing the essential building blocks and frameworks for cost overrun mitigation and containment, the problem still remains a pervasive issue for Governments worldwide. The interdependency that exists between ‘causes’ that lead to cost overruns materialising have largely been ignored when considering the likelihood and impact of their occurrence. The vast majority of the cost overrun literature has tended to adopt a deterministic approach in examining the occurrence of the phenomenon; in this paper a shift towards the adoption of pluralistic probabilistic approach to cost overrun causation is proposed. The establishment of probabilistic theory incorporates the ability to consider the interdependencies of causes so to provide Governments with a holistic understanding of the uncertainties and risks that may derail the delivery and increase the cost of transportation infrastructure projects. This will further assist in the design of effective mitigation and containment strategies that will ensure future transportation infrastructure projects meet their expected costs as well as the need of taxpayers.     

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.     

Mitigating environmental impacts in advance: Evidence of cost and time savings for transportation projects

The traditional model for mitigating a transportation project’s environmental impacts typically operates project-by-project and delivers the mitigation just-in-time. In contrast, the newer practice of advance mitigation comprehensively assesses and mitigates impacts from one or multiple transportation projects before or during project planning, sometimes long before project construction begins. The practice has gained adherents for its potential to improve ecological outcomes, by better aligning mitigation and conservation goals. Advance mitigation also stands to reduce mitigation costs, an important secondary benefit for transportation agencies with constrained resources. Evidence of cost savings, however, has been piecemeal and anecdotal. This paper advances knowledge of advance mitigation’s financial impacts in two ways. First, it critically assesses the evidence about cost savings realized through advance mitigation, both through avoided up-front costs and reduced project delay. Second, it directly estimates the project time savings that might accrue with advance mitigation of state highway projects in California. Overall, the balance of evidence is encouraging for transportation agencies that would introduce the practice, and general agreement exists on its financial benefits. Considering project delays related only to the environmental process, we estimate advance mitigation could reduce delivery times by 1.3–5.0 months per project. Still, we also identify factors limiting comprehensive analysis. Transportation agencies adopting advance mitigation practices into their operations could use a pilot approach that includes rigorous environmental and mitigation cost accounting; such pilots would build needed empirical evidence of advance mitigation’s financial and ecological outcomes.     

Cost-effectiveness of reductions in greenhouse gas emissions from High-Speed Rail and urban transportation projects in California

A rising trend in state and federal transportation finance is to invest capital dollars into projects which reduce greenhouse gas (GHG) emissions. However, a key metric for comparing projects, the cost-effectiveness of GHG emissions reductions, is highly dependent on the cost-benefit methodology employed in the analysis. Our analysis comparing California High-Speed Rail and three urban transportation projects shows how four different accounting framings bring wide variations in cost per metric tonne of GHG emissions reduced. In our analysis, life-cycle GHG emissions are joined with full cost accounting to better understand the benefits of cap-and-trade investments. Considering only public subsidy for capital, none of the projects appear to be a cost-effective means to reduce GHG emissions (i.e., relative to the current price of GHG emissions in California’s cap-and-trade program at $12.21 per tonne). However, after adjusting for the change in private costs users incur when switching from the counterfactual mode (automobile or aircraft) to the mode enabled by the project, all investments appear to reduce GHG emissions at a net savings to the public. Policy and decision-makers who consider only the capital cost of new transportation projects can be expected to incorrectly assess alternatives and indirect benefits (i.e., how travelers adapt to the new mass transit alternative) should be included in decision-making processes.     

The spatial productivity of transportation infrastructure

Transportation infrastructure services may cause an impact on the economy of the region in which they are located and, additionally, they are likely to have an impact on other regions. This effect has been labeled the spillover effect. In this study, the existence of direct and spillover effects of road, railway, airport and seaport infrastructure projects is tested by estimating a production function. Together with this primary objective, two common concerns in the literature are addressed: the lack of theoretical foundations for spatial econometrics models and the likely endogenous relationship between transport infrastructure and economic development. The estimated production function takes the form of a Spatial Durbin Model and is estimated using panel data from the 47 peninsular Spanish provinces by alternatively applying a Maximum Likelihood estimator and Instrumental Variables/Generalized Method of Moments estimators. According to the estimates, road transport infrastructure positively affects the output of the region in which the infrastructure is located and its neighboring provinces, while the remaining modes of transportation projects cause no significant impacts on average.     

Mapping minibuses in Maputo and Nairobi: engaging paratransit in transportation planning in African cities

ABSTRACT

Often called paratransit because of their flexible stops, schedules and routes, minibuses make up the bulk of public transport in African cities. Despite their ubiquity and importance, these systems are poorly understood by transportation planners who tend to focus on large-scale urban infrastructure projects such as highways, commuter rail or bus rapid transit systems. The assumption within much of this planning is that these minibus systems are barriers to change and will become at most secondary “feeder” buses within large-scale projects, but structured plans detailing this vision are lacking. This paper argues that frequent failure to collect data and value important paratransit systems as a critical part of transportation in their own right is deeply problematic from the point of view of equity, access and inclusive and effective planning. We ask whether the growing number of bottom up mapping projects of minibus systems can disrupt this status quo. By comparing two mapping projects, Digital Matatus in Nairobi and the Mapa Dos Chapas in Maputo, we find that inclusive, collaborative mapping can help render these minibuses more visible in planning and provoke more grounded and inclusive “planning conversations” on multi-modal integration, passenger information and minibus upgrading, all key but relatively marginalised aspects of creating accessible, low emission, high quality and safe public transport in African cities.     

Strategies to achieve deep reductions in metropolitan transportation GHG emissions: the case of Philadelphia

ABSTRACT

This paper investigates strategies that could achieve an 80% reduction in transportation emissions from current levels by 2050 in the City of Philadelphia. The baseline daily lifecycle emissions generated by road transportation in the Greater Philadelphia Region in 2012 were quantified using trip information from the 2012 Household Travel Survey (HTS). Emissions were projected to the year 2050 accounting for population growth and trends in vehicle technology for both the Greater Philadelphia Region and the City of Philadelphia. The impacts of vehicle technology and shifts in travel modes on greenhouse gas (GHG) emissions in 2050 were quantified using a scenario approach. The analysis of 12 different scenarios suggests that 80% reduction in emissions is technically feasible through a combination of active transportation, cleaner fuels for public transit vehicles, and a significant market penetration of battery-electric vehicles. The additional electricity demand associated with greater use of electric vehicles could amount to 10.8 TWh/year. The use of plug-in hybrid electric vehicles (PHEV) shows promising results due to high reductions in GHG emissions at a potentially manageable cost.