Subjective vs. objective assessment of the economic impacts of light rail transit: The case of G:Link in Gold Coast, Australia

Abstract

While the current discourse surrounding the economic impacts of light rail transit (LRT) predominantly leans on objective metrics, emerging signs point to a possible disparity between subjective perceptions and these objective evaluations. This study endeavours to fill this void by scrutinizing the impacts of the G:Link in Gold Coast, Australia on local businesses, prompted by anecdotal commentary of adverse effects. Conducting 23 interviews with businesses in Surfers Paradise, located within the G:Link's influential zone, helped identify thematic economic effects. Subsequently, Difference-in-Difference and time-series regression models were estimated to objectively validate four of the identified thematic effects: changes in travel behaviour, business performance, customer base, and tourism activity. While businesses perceived the G:Link as ineffective in promoting public transport and blamed it for their economic downturns, objective data countered these perceptions. It revealed that the G:Link contributed to a 3.6% rise in public transport usage to Surfers Paradise. The economic downturn experienced by businesses cannot be linked to the LRT; rather, it mirrors a broader citywide temporal effect. Furthermore, in contrast to prevailing beliefs, there was a notable increase in both customer volumes and their dwell times. The findings offer nuanced insights into LRT's effects on individual businesses and aggregated impacts, highlighting prevalent misperceptions that could undermine public support, investment opportunities, and sustainable transport choices. Addressing these misunderstandings necessitates robust education and communication strategies.