Measuring the economic effects of transport improvements

Ginés de Rus and Per-Olov Johansson

No 2019-01, Working Papers from FEDEA

Abstract: The measurement of the economic effects of transport improvements is generally based on the rule of a half. Virtually all the projects have in common the reduction of the generalized cost of transport. The basic rule is derived from a simple indirect utility function, illustrating its use to measure changes in the main components of the generalized price of transport. The paper also addresses the issue of the indirect effects and the so-called wider economic benefits, and briefly discuss the content of these additional impacts with the aim of assessing the role of these impacts on the economic appraisal of transport projects.

Date: 2019-01
New Economics Papers: this item is included in nep-tre, nep-upt and nep-ure
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