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Articles

A review of guidelines for including wider economic impacts in transport appraisal

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Pages 94-115 | Received 27 Oct 2015, Accepted 22 Jul 2016, Published online: 09 Aug 2016
 

ABSTRACT

In this paper we examine how 23 industrialised countries treat wider economic impacts (WEIs) in transport appraisals. We identify 12 different types of impacts based on these countries’ appraisal guidelines. Agglomeration impacts and Production changes in imperfect markets are the most widely accepted, being recognised by 14 and 10 countries, respectively. However, about half of the impacts are mentioned by only one country, and few recommend including the impacts directly in cost–benefit analyses. Several countries provide provisos or criteria that must be met before WEIs can be assessed in the first place. We found method recommendations for quantifying WEIs in 10 countries. However, with the exception of the UK Department for Transport’s (DfT) methodological framework, there is very little international consensus on the choice of appropriate methods. Our findings thus supplement and reinforce the conclusions from the Norwegian Official Report of the Hagen Committee [NOU 2012:16. (2012). Samfunnsøkonomiske analyser. Oslo: Departementenes servicesenter] that there is currently no established consensus on the magnitude and relevance of WEIs, or on how and which of these impacts should be taken into account in transport appraisals. Recommendations for further research and appraisal practices are provided.

Acknowledgement

We are indebted to Harald Minken for his helpful comments during the research for this paper. We are also indebted to the constructive comments from three anonymous reviewers.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1. A report in Norwegian can be found in Wangsness et al. (Citation2014).

3. SCGE models.

4. LUTI models.

5. We are grateful to an anonymous referee for pointing this out to us.

Additional information

Funding

We appreciate receiving the financial support from the Norwegian Public Roads Administration that made this research possible.

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