Justifying a high-speed rail project: social value vs. regional growth

Fernand Martin

The Annals of Regional Science, 1997, vol. 31, issue 2, 155-174

Abstract: This article establishes a relationship between the net present value (NPV) of a High-Speed Rail (HSR) project and its social value, its transportation consumers` surplus (TCS) and its regional economic impact in terms of growth. First, it is shown that if the NPV is positive, it may generate growth even if no bottleneck exists. Second, when shadow-pricing and externalities are included in the calculations, and the HSR demand has been forecasted by a multinomial logit model, the NPV differs from its net economic impact. For instance, one variant of the project, though acceptable, reduces growth elsewhere in the economy. Decision-making is then in a quandary.

Date: 1997
Note: Received: April 1996 / Accepted: May 1996
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://link.springer.de/link/service/journals/00168/papers/7031002/70310155.pdf (application/pdf)
http://link.springer.de/link/service/journals/0016 ... 31002/70310155.ps.gz (application/postscript)
Access to the full text of the articles in this series is restricted

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:spr:anresc:v:31:y:1997:i:2:p:155-174

Ordering information: This journal article can be ordered from
http://link.springer.com/journal/168

Access Statistics for this article

The Annals of Regional Science is currently edited by Martin Andersson, E. Kim and Janet E. Kohlhase

More articles in The Annals of Regional Science from Springer, Western Regional Science Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().