"congestion has no effect on economic output"
Event Number: 276 Event Title: Assessing National, Regional, and Local Performance, Accessibility, and Economic Impacts of Transportation Investments Event Date: Jan 23 2012 10:15AM- 12:00PM Event Location: Hilton, Lincoln West Event Description:
Event Agenda:Effects of Road Investments on Productivity and Induced Travel Demand: Evidence for U.S. Urbanized Areas (12-1568)
The objective of this paper is to analyze the effects of road transportation investment on economic productivity and induced travel demand. Data for US urbanized areas are analyzed within a dynamic panel data VAR framework to test whether transportation induced productivity and induced travel demand can be empirically validated. The results show that investment in road capacity increases economic productivity while simultaneously also inducing additional growth in traffic (vehicle miles travelled). The net result of these two effects is a general failure of investment to alleviate levels of congestion suggesting that productivity shifts are brought about due to an increase in the scale of travel and associated interactions, rather than through improved network performance as manifest in travel times. The evidence also indicates that congestion forms parts of the decision criterion used to allocate investments in road capacity. If improvements in network performance are to be achieved in a climate of travel demand growth, demand management techniques may be more effective than capacity expansion.
Authors Melo, Patricia C. , Imperial College London, United Kingdom Graham, Daniel Joseph, Imperial College London, United Kingdom Canavan, Shane , Imperial College London, United Kingdom