EconPapers    
Economics at your fingertips  
 

Estimating road transport costs between and within European Union regions

Damiaan Persyn, Jorge Diaz-Lanchas and Javier Barbero

Transport Policy, 2022, vol. 124, issue C, 33-42

Abstract: Transport costs are a crucial element of applied spatial models such as spatial macro-economic models or interaction models for e.g. trade, migration or commuting. However, good estimates of these costs are not available at lower levels of spatial aggregation. In applied work, the distance between two regions is often approximated by the distance between the largest city in each region. For costs within regions, researchers often resort to crude ad-hoc approximations relating internal distance to the area of the region assuming a uniform internal distribution. This paper improves on this by considering averages of transport costs calculated between extremely large random samples of centroids which are drawn from a population grid. This allows calculating distances, travel times and transport costs both between and within regions, while taking into account the unequal distribution of population within the regions. The use of a detailed road network and many auxiliary datasets allows performing policy analysis. We assess the impact on transport cost of an increase in fuel prices, and find that it has a relatively high effect on transport costs in Eastern Europe. We evaluate transport infrastructure investment of the European Cohesion Policy program 2014–2020. The largest decreases in transport costs are found in targeted regions in Eastern Europe while the effect is much smaller in targeted regions in Southern Europe, suggesting decreasing returns to further transport infrastructure in these regions. We find significant inter-regional spillovers to regions directly bordering the regions targeted by the policy in Eastern Europe, such as in Germany and Austria, but also Finland and Northern Italy. The positive spillovers to EU regions in Western Europe are quite small.

Keywords: Generalized transport costs; Transport policy; Infrastructure investment; Regions; Europe (search for similar items in EconPapers)
JEL-codes: R11 R15 R41 R42 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0967070X20301827
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:trapol:v:124:y:2022:i:c:p:33-42

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.tranpol.2020.04.006

Access Statistics for this article

Transport Policy is currently edited by Y. Hayashi

More articles in Transport Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-19
Handle: RePEc:eee:trapol:v:124:y:2022:i:c:p:33-42