Designing computable general equilibrium models for transportation applications

ABSTRACT

This paper presents a review of Computable General Equilibrium (CGE) model applications for spatial economic and transport interaction modelling. This paper has three objectives (1) To deliver an up to date and comprehensive literature review on applications of CGE models in transportation, (2) To analyze the different methodological approaches and their theoretical and practical advantages and disadvantages, and (3) To ultimately provide guidance on designing CGE models for various transportation analyses. The content of the paper is as follows: first, a brief introduction to CGE models is provided. The history of CGE models is traced, ranging from their origins and seminal applications in economics, to their eventual adoption in transportation research. This is followed by a comprehensive review of the application of CGE models to transport projects and policies. Various applications in transportation are reviewed in terms of their intended application, as well as their treatment of space and time. Finally, these applications are contrasted with respect to their methodological approaches, with a close examination of various influential model choices. Here, the essential design choices made within these model applications are explained and debated, to clearly elaborate on the workings of the models and the design choices facing CGE model developers.

KEYWORDS:

• Computable general equilibrium
• transport appraisal
• transport economics
• transport policy
• modelling
• economic impact analysis

Disclosure statement

No potential conflict of interest was reported by the authors.