Benefits Of Infrastructure Investments Research Articles

Cargo Airport Planning: Discerning Spatial Distributions of Freight Development in Airport-Adjacent Communities

Recent initiatives from the federal government, such as Justice40, assert the need to ensure equitable distribution of economic benefits of infrastructure investment. Yet, there is little empirical work that assesses spatial-economic outcomes in airport-adjacent communities. To inform these equity goals in the context of cargo airport development, this study proposed a strategy for discerning the economic clustering characteristics of airport-adjacent communities relative to their metropolitan areas. The study focused on the 10 U.S. airports with the most airfreight in 2017. We used the local spatial statistic, the Getis–Ord [Formula: see text], to identify grid-based spatial clusters of regionally significant transportation and logistics economic activity. We further explored the extent to which those clusters were consistent across economic attributes (businesses, employees, and sales volume). The results demonstrated that the presence of business hot spots in the airport-adjacent community was not necessarily matched by hot spots of employment or sales volume. The study recommends the following spatial terminology to describe patterns of spatial-economic hot spots near airports: Compacted aerotropolis, Fragmented aerotropolis, Sector aerotropolis, Airea, Corridor, and Outlying. The study found that two airports fit the Fragmented aerotropolis model; two, the Compacted aerotropolis model; one, the Airea; one, Outlying; and four were inconsistent across economic variables. By dividing the study airports into these categories, we were able to discern the significance of the economic impacts on the airport-adjacent community and provide a spatial rhetoric that would be meaningful and accessible to a variety of stakeholders in the participatory planning process.

Water infrastructure and health in U.S. cities

Between 1900 and 1930 typhoid fever and other waterborne diseases were largely eradicated from U.S. cities. This achievement required a mix of technological, scientific, economic, and bureaucratic innovations. This article examines how the interaction of those forces influenced water and sanitary infrastructure provision during the 19th and early 20th centuries. I document a sharp link between infrastructure investments and declines in waterborne disease and discuss how that relationship informs the methodological approaches one should use to assess the impact of sanitary investments on urban development. Finally, I review the literature on the social returns to eliminating the threat of waterborne disease. The evidence suggests the benefits of infrastructure investment far exceeded the costs.

Water Infrastructure and Health in U.S. Cities

Between 1900 and 1930 typhoid fever and other waterborne diseases were largely eradicated from U.S. cities. This achievement required a mix of technological, scientific, economic, and bureaucratic innovations. This article examines how the interaction of those forces influenced water and sanitary infrastructure provision during the 19th and early 20th centuries. I show the sharp link between infrastructure investments and declines in waterborne disease and discuss how that relationship informs the methodological approaches one should use to assess the impact of sanitary investments on urban development. Finally, I review the literature on the social returns to eliminating the threat of waterborne disease. The evidence suggests the benefits of infrastructure investment far exceeded the costs. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Economic viability and regulation effects of infrastructure investments for inter-regional electricity transmission and trade in China

The transition of energy structure to renewable energy is a social and systematic engineering that requires complex regional power interconnection as a support. Thus, an assessment of the economic viability of infrastructure investments for supporting such transmission expansion is crucial. This study presents a multi-regional power system optimization model to evaluate the potential economic benefits of infrastructure investments for the national inter-regional electricity network in China under various scenarios in the context of low-carbon transformation. Key factors influencing economic benefits are analyzed specifically and regulation barriers associated with inter-regional electricity trade are given particular attention. The results show that approximately 140 Giga Watt (GW) of infrastructure construction for the inter-regional electricity trade network is economically viable during the planning horizon. These new interconnections would lead to 250–440 billion RMB of economic benefits. Regional electricity trade barriers caused by imperfect market mechanisms have a negative impact on the economic benefits of transmission infrastructure investments, although they promote scale and utilization efficiency in the power sector of electricity-importing regions. Improving the national grid coordination mechanism to break the grid isolation between the State Grid Corporation of China and the China Southern Power Grid is crucial, because a large number of transmission lines connecting these two national-level power grids are economically viable.

Transport Mode and the Value of Accessibility–A Potential Input for Sustainable Investment Analysis

Accessibility plays an essential role in determining real estate prices and land use. An understanding of how accessibility and changes in accessibility influence real estate prices is key to making decisions regarding investments in infrastructure projects. From an accessibility point of view, it is not clear that there should be differences in valuation depending on the mode of public transport, road, or rail. There are, however, other differences that may affect real estate prices differently. For example, railway stations more often than bus stations, tend to be associated with a higher level of service. In addition, an investment in a railway station may signal a long-term decision from the policymaker. A third possible explanation concerns differences in perceived safety, comfort, and security. This paper aims to study if and how capitalization of accessibility differs between modes of transportation. The findings indicate that rail has a higher impact, both for single-family and multifamily houses. The implication of these findings may be of importance for future infrastructure investments and their corresponding cost-benefit analyses. Incorrect valuations of the benefits of infrastructure investments may result in sub-optimal investments.

Let Me Save You Some Time... On Valuing Travelers’ Time in Urban Transportation

Systems of urban transportation are largely shaped through planning practices. In transport economics, the benefits of infrastructure investments consist mainly of travel time savings calculated using monetary values of time. The economic interpretation of the value of travel time has significantly shaped our urban environment and transportation schemes. However, there is often an underlying assumption of transferability between time and money, which arguably does not sufficiently take into account the specific features of time. In this paper, we analyze the various properties of time as an economic resource using findings in behavioral economics and psychology. Due to limitations in the standard model, it is proposed that an alternative model value should be investigated in which time rather than money is the primary carrier of and the basic features of such a model are outlined. An improved understanding the nature of time as a source of utility puts us in a better position to determine what aspects of time matter. Additionally, the analysis can be applied to further develop modeling where value of time plays a significant role; such as new models for the planning of urban transport.

Equity in Spatial Access to Bicycling Infrastructure in Mid-Sized Canadian Cities

The impacts of active transportation planning on equity are often overlooked, potentially leading to disparities in who receives benefits of infrastructure investment. This study examined income inequalities in spatial access to bicycling infrastructure in three mid-sized Canadian cities: Victoria and Kelowna (British Columbia), and Halifax (Nova Scotia), using non-spatial and spatial methods. We compiled municipal bicycling infrastructure data and calculated access to bicycling infrastructure (m/km2) for dissemination areas (DAs) within each city. We analyzed trends in access across median household income quintiles, and characterized spatial patterns using a local measure of spatial autocorrelation. DAs in Kelowna ( n = 168) had the greatest access to infrastructure (median infrastructure = 2,915 m/km2), followed by Victoria ( n = 386 DAs; median = 2,157 m/km2), and Halifax ( n = 312 DAs; median = 0 m/km2). Lower income areas in Victoria and Kelowna had greater access to infrastructure compared with higher income areas. The majority of DAs in Halifax had no infrastructure (59%), consistent across income quintiles. Spatial pattern analysis identified clusters of low income areas with poor access in each city, which may be targets for strategic, equitable investment. Although in many cities bicycling infrastructure planning is not driven by equity considerations, there is increasing political pressure to ensure equitable access to safe bicycling. Measuring and mapping trends in access to transportation resources from an equity perspective are requisite steps in the pathway toward healthy, sustainable cities for all.

Transport legacy of mega-events and the redistribution of accessibility to urban destinations

Local governments increasingly justify the hosting of mega-events because of their legacy value, assuming that all local residents benefit from those events. Yet, little attention has been paid to the distributive question of who benefits from the transport legacy left by those events. This paper reflects on the delimitation of transport legacies and its social impacts in terms of how such developments can reshape urban accessibility to opportunities. It analyses the transformation in the transport system of Rio de Janeiro (Brazil) in preparation for the 2014 World Cup and the 2016 Olympic Games. That transformation involved substantial expansion in public transport infrastructure, followed by cuts in service levels and a reorganization of many bus lines to streamline the transport system. The paper examines whether those recent changes have increased the number of people from different income levels who could access Olympic sports venues and healthcare facilities by public transport within 15, 30, 60 and 90 min. The analysis uses a before-and-after comparison of Rio's transport network (2014–2017) and a quasi-counterfactual scenario to separate the effects of newly added infrastructure from the reorganization and cuts of transport services. The results show that the infrastructure expansion alone would have increased the number of people who could access the Olympic sports venues, but it would have only marginally improved people's access to healthcare facilities. Nonetheless, the findings indicate that the streamlined bus system have offset the benefits of infrastructure investments in a way that particularly penalizes the poor. The analysis of both the implemented changes to the public transport network and the counterfactual scenario show that the accessibility benefits from the recent cycle of investments and disinvestments in Rio generally accrued to middle- and higher-income groups, reinforcing existing patterns of urban inequality.

Constraints to achieve infrastructure sustainability for mountainous townships in China

This paper investigates the constraints to achieving optimal infrastructure sustainability for mountainous townships in Southwest China. Although such townships are relatively less developed, it is well recognized that investment in infrastructure projects in less developed townships plays a vital role in China's sustainable development mission. While the benefits of infrastructure investments are usually measured by means of economic performance, their long-term sustainability performance is largely overlooked. It is therefore imperative to understand the constraints that impede infrastructure sustainability and what corrective actions can be taken. The constraints are identified in this study via exploratory factor analysis and structural equation modeling. Twenty-one townships in the mountainous regions of Southwest China were investigated by means of a questionnaire survey. The study reveals that the major constraints include four dimensions: “Economic Capacity”, “Governance and Management”, “Policy Instrument and Public Participation”, and “Local Geographic Characteristics”. Identification of these constraints provides a valuable reference for local governments to take adequate measures to ensure that their infrastructure sustainability can be improved.

Institutional issues in planning for more uncertain futures

Future travel demand has always been difficult to estimate. Recent trends of a slow down or stagnation in traffic growth combined with substantial demographic, economic, and technological shifts further complicate that task. This poses a significant planning challenge given that decision-making is often based on the benefits of infrastructure investments which accrue over periods as long as 60 years. In contrast to the changing ideas around what mobility in the future will look like and the types of demand it may need to service, the practice of forecasting future travel demand remains largely unchanged as do the decision-making processes which flow from this. Alternative approaches to thinking about futures such as scenario planning exist but have had more limited deployment in the transport sector. This paper explores the institutional issues surrounding the purpose, practice and barriers to changing the approaches of forecasting and decision-making through an exploration of the state of practice in the UK drawing on interviews with 23 practitioners. Drawing on Hall’s work on policy change, the research finds that there is a strong policy paradigm built around the relationships between transport investment and traffic growth. This has strengthened since the recession with an increased focus on the relationship between transport and job creation. The forecasting approaches in use today are an important part of a complex decision-making apparatus reflective of specialized policy arenas like transport. Challenges in acknowledging, representing and communicating uncertainty are identified leaving a growing tension between planning visions and planning practice. We conclude by reflecting on events which may stimulate a broader reframing of how we plan for transport futures whilst embracing key uncertainties.

Method of assessing the role of short sea shipping in sustainable development of transport

The article presents the analysis of short sea shipping in the context of European sustainable transport. One of the goals of sustainable transport is to shift road freight transport to other modes of transport. Direct comparison of external costs generated in road and sea transport leads to erroneous conclusions. Sea transport is a part of a land-sea transport chain which additionally includes pre-haulage links and transhipment. This article presents a methodology of assessing external costs generated in land-sea transport chains and in alternative road transport. The model is based on actual consumption of fuel by vehicles. It takes into account the specific nature of short sea shipping, the external costs generated in transport nodes, pre-haulage transport and emissions generated by different types of vessels. The model can be applied to evaluate external benefits of infrastructure investment or a new shipping line. It also presents the practical application of the model.

Low carbon infrastructure investment: extending business models for sustainability

Investment in infrastructure is recognized as a key enabler of economic prosperity, but it is also important for addressing social and environmental challenges, including climate change mitigation and addressing fuel poverty. The UK Government Strategy Investing in Britain’s Future argues that significant investment in “resilient, cost effective and sustainable energy supplies” is needed to meet these challenges. However, current methods of assessing the costs and benefits of infrastructure investment, and the subsequent design of business models needed to deliver this investment, often prioritise partial economic gains over social and environmental objectives. This paper extends the business model canvas approach to allow designing business models and evaluation methods that can incorporate social and environmental value streams and propositions as well as economic values in order to facilitate genuinely sustainable infrastructure investment. It demonstrates the usefulness of this extension through two case studies of the development of smart grids for electricity distribution and local heat delivery networks in the UK. Smart grids are essential for maintaining the security and reliability of electricity systems whilst incorporating increasing amounts of low carbon generation in distribution networks. District heat networks can facilitate the efficient supply of low carbon heat. However, both will require significant levels of investment, co-ordination between public, private and regulatory actors, and will deliver a range of economic, social and environmental costs and benefits to these actors. Drawing on empirical interviews with local actors involved in smart grid and heat network developments, and recent work on valuation and business model canvas analysis, the paper challenges the traditional view of a business model as only creating one form of value. Accounting for multiple types of value helps to identify business models that are more likely to achieve the environmental and social goals of infrastructure transformation and opens the door for new actors. Finally, the paper introduces an approach to complex systems modelling of infrastructure investment decisions to take into account the range of actors and the diversity of motivations of these actors.

Investing in Ontario's Infrastructure for Economic Growth and Prosperity

This paper documents the potential employment and other value-added benefits of infrastructure investments in Ontario. In particular, it details the impact of infrastructure investment as a counter-cyclical fiscal policy tool. A review of the recent literature reveals that infrastructure investment serves both as a tool for job creation and as a stimulus for the economy as a whole. During recessionary times infrastructure investments have been able to boost the economy and have served as a primary job creation tool, especially when the private sector investments have dried up. At the same time, these investments have produced the infrastructure necessary to support future economic growth. Published research also revealed that the input-output models have been the preferred tool to capture the relationship between infrastructure investments and their impact on economy. Thus, the primary aim of this paper is to illustrate the impact of infrastructure investment on job creation, GDP, and tax revenue in the Province of Ontario using an input-output model. The paper documents the results of a simulation exercise, using an input-output model of the Ontario economy based on a 2008 industry structure that estimated the economic impact of a $12-billion public sector (government) investment in non-residential building and engineering construction in Ontario. This infrastructure investment is estimated to have a $38.4-billion impact on the province’s economy. The $12-billion investment would create an estimated 203,000 jobs (person-years of employment) in the provincial economy, generate an estimated $10 billion in employment income and increase the provincial GDP by an estimated $18.5 billion. This investment would also generate an estimated $668.7 million in corporate taxes and $161.2 in personal income taxes. When the impacts are normalized to a $1-billion stimulus, the IO simulations revealed that during the 2008 recessionary period in Ontario, every billion dollar invested in non-residential building and engineering construction would create almost 17,000 new jobs. Of those, the model estimated 3,050 jobs in direct impact, 2,850 jobs in indirect impact, and 11,000 jobs in induced impact. These benefits are in addition to the longer term direct benefits of infrastructure investments that would result from the use of new or rehabilitated infrastructure. For instance, a $12-billion investment in transportation infrastructure could result in a significant improvement in accessibility and mobility in the region, and related improvements in labour and business productivity. The above-mentioned monetized impacts of infrastructure investments, however, are above and beyond the positive impacts on accessibility and productivity. Finally, the paper reviews transportation infrastructure plans for the Greater Toronto and Hamilton Area (GTHA) and discusses the investment tools identified recently by various agencies. The paper concludes that public-private partnerships for infrastructure development will promote greater use of private capital in the construction and development of public infrastructure. User fees and those taxes that are likely to modify consumer behaviour are recommended as the preferred tools for revenue generation to support the construction of new infrastructure. We recommend that sufficient funds should be made available for infrastructure development and renewal in Canada to maintain the competitiveness of Canadian businesses. The opportunity cost of not spending now reduces the productive capacity of the economy in the future, especially when public capital investments in infrastructure have the potential to generate immediate and substantial productivity gains.

Does Regional Infrastructure Investment Stimulate Extra Housing and Commercial Building Supply? Long-Run Evidence Across the English Regions

This paper uses long-term regional construction data to investigate whether increases infrastructure investment in the English regions leads to subsequent rises in housebuilding and new commercial property, using time series modeling. Both physical (roads and harbours) and social infrastructure (education and health) impacts are investigated across nine regions in England. Significant effects for physical infrastructure are found across most regions and, also, some evidence of a social infrastructure effect. The results are not consistent across regions, which may be due to geographical differences and to network and diversionary effects. However, the results do suggest that infrastructure does have some impact but follows differential lag structures. These results provide a test of the hypothesis of the economic benefits of infrastructure investment in an approach that has not been used before.