Abstract
We explore the regional disparities in economic and health benefits from the expansion of Japan’s high-speed railways and highways over 35 years. Utilizing market access and instrumental variables strategies, we establish a causal relationship between transportation expansion and its economic and health consequences, the latter of which are driven by air quality outcomes. Nationally, over 35 years, transportation expansion has significantly reduced the suspended particulate matter density by 2.96% and increased income by 15.80%. However, these benefits are largely concentrated in developed regions such as Tokyo, leaving other cities with only slight improvements in SPM reduction and income growth. Our estimates suggest the 35-year transportation expansions is estimated to have provided $817.60 and $4,701.20 per capita health and economic benefits, respectively. We discuss the transformation of the industry structures driving these changes. The asymmetrical benefits distribution poses challenges, emphasizing the necessity of addressing these disparities for future sustainable transportation development.
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