Research 350 - NZ Transport Agency

Contents
Executive Summary ...................................................................................................................... 7
Abstract ....................................................................................................................................... 13
1. Introduction...................................................................................................................... 15
1.1 National economic benefits.................................................................................... 15
1.2 Role of transport investment in promoting economic development ................... 16
1.3 Approaches for assessing regional economic and other distributional effects .. 16
2. Approaches to assessing national economic benefits ............................................... 17
2.1 Scope ....................................................................................................................... 17
2.2 Introduction to evaluation approache.................................................................... 17
2.2.1 Social Cost Benefit Analysis ...................................................................... 17
2.2.2 Input-Output Analysis ............................................................................... 20
2.3 General Equilibrium (CGE) Modelling ..................................................................... 22
2.4 LUTI Models............................................................................................................. 24
2.5 Critical appraisal of SCBA ....................................................................................... 25
2.5.1 Induced/diverted demand......................................................................... 25
2.5.2 Environmental externalities ...................................................................... 26
2.5.3 Conclusion ................................................................................................. 41
2.5.4 Comparison of SCBA and other models ................................................... 42
2.6 Critical appraisal of other models.......................................................................... 43
2.6.1 Input-Output Analysis ............................................................................... 43
2.6.2 General Equilibrium Analysis .................................................................... 48
2.6.3 LUTI Models ............................................................................................... 55
2.7 Other assessment approaches: summary.............................................................. 55
2.8 Conclusions on alternative approach..................................................................... 58
2.9 Recommendations on practice............................................................................... 63
2.9.1 Role of SCBA .............................................................................................. 63
2.9.2 Role of I-O, CGE or other models.............................................................. 66
3. Role of transport investment in national/regional economic development ........... 69
3.1 Scope of chapter ..................................................................................................... 69
3.2 Effectiveness of transport investment in promoting economic development ..... 69
3.3 Conclusions............................................................................................................. 76
4. Approaches to assessing regional economic andoOther distributional effects..... 79
4.1 Scope of chapter ..................................................................................................... 79
4.2 Effectiveness ofb transport investment in promoting regional development ..... 79
4.2.1 Regional development themes ................................................................. 79
4.2.2 Economic growth or economic efficiency? ............................................... 80
4.2.3 Evidence for regional economic benefits ............................................... 800
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