A Framework for Quantifying Hyperloop’s Socio-Economic Impact in Smart Cities Using GDP Modeling

Aleksejs Vesjolijs, Yulia Stukalina () and Olga Zervina
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Aleksejs Vesjolijs: Engineering Faculty, Transport and Telecommunication Institute, 2 Lauvas Street, LV-1019 Riga, Latvia
Yulia Stukalina: Transport and Management Faculty, Transport and Telecommunication Institute, 2 Lauvas Street, LV-1019 Riga, Latvia
Olga Zervina: Transport and Management Faculty, Transport and Telecommunication Institute, 2 Lauvas Street, LV-1019 Riga, Latvia

Economies, 2025, vol. 13, issue 8, 1-20

Abstract: Hyperloop ultra-high-speed transport presents a transformative opportunity for future mobility systems in smart cities. However, assessing its socio-economic impact remains challenging due to Hyperloop’s unique technological, modal, and operational characteristics. As a novel, fifth mode of transportation—distinct from both aviation and rail—Hyperloop requires tailored evaluation tools for policymakers. This study proposes a custom-designed framework to quantify its macroeconomic effects through changes in gross domestic product (GDP) at the city level. Unlike traditional economic models, the proposed approach is specifically adapted to Hyperloop’s multimodality, infrastructure, speed profile, and digital-green footprint. A Poisson pseudo-maximum likelihood (PPML) model is developed and applied at two technology readiness levels (TRL-6 and TRL-9). Case studies of Glasgow, Berlin, and Busan are used to simulate impacts based on geo-spatial features and city-specific trade and accessibility indicators. Results indicate substantial GDP increases driven by factors such as expanded 60 min commute catchment zones, improved trade flows, and connectivity node density. For instance, under TRL-9 conditions, GDP uplift reaches over 260% in certain scenarios. The framework offers a scalable, reproducible tool for policymakers and urban planners to evaluate the economic potential of Hyperloop within the context of sustainable smart city development.

Keywords: socio-economic impacts; smart city; logistics; urban development; hyperloop (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2025
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