Welfare analysis in transport networks

Paul Besseling and Maarten van 't Riet ()
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Maarten van 't Riet: CPB Netherlands Bureau for Economic Policy Analysis

No 130, CPB Discussion Paper from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: Should one calculate user benefits from changes in door-to-door journeys or from changes in the use of separate links of the network? Quite often, the second approach is deemed wrong, as consumers are supposed to demand journeys, not parts of journeys. However, we show that for a quite general economic model and under fairly general assumptions regarding the network, both approaches are equivalent. The cost-benefit analysis practitioner can exploit this result. The links approach reveals on what part of the networks user benefits and/or losses are generated. This additional piece of information might help to optimize the project design.

JEL-codes: D61 H54 R42 (search for similar items in EconPapers)
Date: 2009-10
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (2)

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