Transportation Investment Research Articles

Regional Transportation Integration and High-Quality Economic Development, Coupling Coordination Analysis, in the Yangtze River Delta, China

Regional transportation integration is a key aspect in promoting regional integration and high-quality economic development, as it can improve inter-regional connectivity, decrease transportation costs, and facilitate the flow of labor, capital, technology, and data. However, regional transportation integration is also difficult to quantitatively evaluate, causing difficulties in comprehensively understanding the specific transportation–economic relationships for different regions that are planned for integration. This article studied 41 cities in the Yangtze River Delta, which is known as the largest regional integration project in China. Two sets of index systems were created to quantitatively evaluate regional transportation integration and high-quality economic development. Coupling coordination degree analysis was then performed to investigate the relationship between the two systems. It was found that areas with a high degree of coupling coordination are located in the Z-shaped belt with the Shanghai–Nanjing–Hefei and Shanghai–Hangzhou–Ningbo urban agglomerations. Furthermore, specific developmental gaps between regional transportation integration and high-quality economic development were identified and mapped, showing areas with transportation development falling behind economic development and vice versa. Based on these findings, a number of policy suggestions are provided from the perspective of province and regional development. It is recommended to continue to invest in transportation development and integration in the well-coordinated Z-shaped region and areas with transportation development falling behind economic development, while it is not recommended to use transportation investment to solve economic problems for those under-developed regions that already have relatively advanced transportation than economic development.

Analisa Kelayakan Investasi Proyek Moda Transportasi Masal Light Rail Transit (LRT) Jabodebek

This journal aims to analyze the feasibility of investing in mass transportation development project in Indonesia, specifically LRT Jabodebek project using Capital Budgeting method. The author conducted an investment feasibility analysis using four Capital Budgeting methods, which consist of Payback Period (PP), Net Present Value (NPV), Profitability Index (PI), and Internal Rate of Return (IRR). In addition, there is also a sensitivity analysis to measure the impact of important variable changes on the analysis results. The analysis results show that the LRT Jabodebek project is a feasible project to continue, which indicated by PP duration of 22.59 years, NPV above 11 trillions rupiahs, PI of 1.42, and IRR of 8.09%. Sensitivity analysis shows that LRT Jabodebek project is still in the feasible category after being recalculated by applying several scenarios. This journal is expected to have significant implications for decision-makers and stakeholders in the public transportation investment sector in Indonesia.

An application of land use, transport, and economy interaction model

Governments need to assess the benefits of transport projects to prioritize investments. It is imperative for governments to have tools that can closely estimate the actual benefits and impacts of investments in significant transport projects.Traditionally, the benefits of a transport project have been estimated by using a transport model, assuming fixed land use for the base and project case in the future. However, this approach cannot measure the impact of land-use changes as residents and businesses relocate to take advantage of lower travel and/or freight costs resulting from the project. Consequently, the benefits of the project may be under or overestimated, depending on its position within the transport network and how it reshapes land use patterns in the future. To overcome this drawback in existing models, this paper firstly presents a literature review of advances in the land use transport interaction model (LUTI), then discusses the development of a LUTI model for Victoria, Australia (VLUTI) by integrating the Victorian Integrated Transport Model with a Spatial Computable General Equilibrium model (SCGE). The land use component (SCGE) was developed to represent a highly resolved zone system, detailed classifications of occupations and industries, and spatial interactions via commuting, and trade in goods and services, and thus enables VLUTI to simulate a detailed and nuanced picture of land use and transport interactions in a complete economic environment.The literature review also indicates limited research in applying a LUTI to estimate land use change benefits. This paper presents an application of VLUTI by looking at differences in the conventional transport benefits under both static and dynamic land use scenarios. In the static method, the land use in the project case is unchanged from the base case. In the dynamic case, the land use in the project case, at a future point in time, is endogenously adjusted within VLUTI. It presents a method to correct, in the dynamic case, the benefits as estimated by the rule of a half, which usually assumes static land use. The paper concludes with suggestions for further developments and improvements of VLUTI such as incorporating an activity-based transport model and an environmental model to progress toward an integrated land-use, transport, economy, and environment model capable of assessing the full impact of a transport project in a holistic way.

Including sub-surface uncertainties in CCS hub investment decision making – a case history

Large-scale carbon capture and storage (CCS) hub investments require design choices regarding sizing (in Mt-CO2/year) and project build-out phasing. Investments in capture and transport represent the majority of overall project capex, with the ‘size’ of that infrastructure ideally optimised to capture and deliver steady rates over the asset lifetime. However, there is a risk that the sub-surface injection (i.e. storage) rate cannot be sustained at the specified capture rate. The investment risk in sizing major capture and transport equipment therefore lies in the uncertainty surrounding future dynamic performance of the storage site(s). This paper builds on a previous investigation for the Surat Basin, examining the role that sub-surface uncertainties play in this hub- sizing risk. Articulating the value of investment in additional appraisal information, shows that the acquisition of critical, uncertainty-defining data can reduce final investment risk in capture and transport, helping to ‘right size’ the hub build. Screening-stage modelling of technical and economic uncertainty plays a crucial role, characterised with a target unit technical cost (UTC) that represents the life-cycle, constant real-terms, carbon price ($/t) required for storage that would result in a break-even economic development. The presence of pre-development uncertainties in long-term dynamic performance, and the need for appraisal to reduce that uncertainty, effectively increase the required break-even storage price. Alternatively, ignoring that uncertainty could lead to under-performance of the storage resource (inability to sequester at the capture design-rates) and significant over-investment in capture and transport infrastructure, increasing the overall cost of CO2 sequestration.

Public private partnerships and water and sanitation infrastructure development in Zimbabwe: what determines financing?

BackgroundZimbabwe envisions being an upper-middle-income economy by the year 2030. The vision 2030 has infrastructure development as a stand-out pillar upon which it is founded. The vision envisages well-developed, modern, efficient and resilient infrastructure as paramount to Zimbabwe’s economic recovery. The policy plan seeks to increase infrastructure investments in energy, transport, information technology, tourism, housing, and water and sanitation. However, a still hesitant private sector exists with regard to investment in water and sanitation infrastructure even in developed countries. Thus, the study seeks to analyse determinants of financing water and sanitation public private partnerships in Zimbabwe given that there is no consensus between reseachers on how determinant factors impact PPP investments.MethodsThe study applied Tobit regression methodology on data collected for the 25 years ending 2021 to investigate determinants of financing water sanitation PPPs in Zimbabwe. Tobit regression method is preferred given the censored nature of the investment values of water and sanitation public private partnerships that reached financial closure in Zimbabwe.ResultsIn Zimbabwe, financial market development is a key financing determinant of water and sanitation public private partnerships. Both the capital and bank market development influences infrastructure financing in Zimbabwe`s water and sanitation sector. Moreover, foreign direct investment negatively and significantly relates with water and sanitation public private partnership investments.ConclusionAttracting private investment into Zimbabwe`s water and sanitation sector requires that policy design targets capital and bank market development. Reforms can be achieved through putting in place sound frameworks that facilitate effective financial intermediation systems, enhance market liquidity and lower cost of capital.

ESTIMATING VALUE UPLIFT FROM TRANSIT INVESTMENTS IN SUBANG JAYA, SELANGOR USING DIFFERENCE-IN-DIFFERENCE METHOD

It is generally believed that public transport investment such as urban rail transit systems can improve accessibility, particularly in larger and denser metropolitan areas. The improved accessibility provided by urban rail transit systems can drive up the value of surrounding land or property due to increased buyer demand. Based on this general belief, the study estimates the impact of the Kelana Jaya LRT line extension on residential property values in Subang Jaya, Selangor. Using Difference-in-Difference (DID) method with transaction-based data of 1,006 terraced properties, it is estimated that a typical terraced unit located within 0.8 km of the nearest LRT station and be sold during the construction phase of the project and after the system became operational would fetch a respective premium of approximately 4.7% and 5.3%, or RM31,490 and RM35,510 on average. It is also estimated that the overall impact on the price of terraced properties located within 0.8 km from the nearest LRT station in Subang Jaya, amounts to nearly RM11.6 million. An interesting accounting implication arising from this potential revenue is that it could provide a significant financial incentive to fully or partially fund urban rail transit projects in the Greater Kuala Lumpur area.

Decarbonizing Health Care: Engaging Leaders in Change

Summary Health care leaders are often surprised to learn that their operations contribute significantly to a warming climate. In addition to their roles as responders to and victims of extreme weather events, health care organizations have an obligation to reduce their substantial greenhouse gas emissions as part of their overall mission to do no harm and to improve health. Representing close to one fifth of the U.S. gross domestic product, the health care sector can use its purchasing power to drive the transition to clean energy and a low-carbon supply chain for the rest of the nation. Moreover, much of the shift in focus to preventive models of care and safer, higher-quality care that reduces unnecessary utilization will naturally produce lower carbon footprints. With the Inflation Reduction Act of 2022, nonprofit organizations can now use the new tax credit provisions for renewable energy to support desired investments in buildings, energy infrastructure, and transportation, among others. Health care organizations and their global value chains can be influential and important catalysts for the journey to a net-zero carbon future. Here, the authors share recommendations for how leaders can build climate-smart strategies that take advantage of tax incentives and drive changes that can both energize their employees and build a more resilient system to care for their communities.

PRIORITIES FOR FINANCIAL SUPPORT OF STATE INVESTMENT ACTIVITIES AND INVESTMENT POLICY IN UZBEKISTAN

This article examines the priorities of financial support for state investment activities and investment policy in Uzbekistan. The governments focus on infrastructure development has been particularly effective in improving the countrys economic performance, with significant investments in transportation, energy, and urban infrastructure. The agricultural sector also plays a vital role in the countrys economy, accounting for approximately 27% of the countrys GDP in 2020. The government has implemented policies to support the sector, including the introduction of modern agricultural technologies and the establishment of agro-industrial parks. The countrys education system has also improved significantly, resulting in a higher literacy rate. Tourism is a growing industry in Uzbekistan, with the governments efforts to promote the countrys rich cultural heritage and historical sites. Continued efforts to attract foreign investment and promote economic growth will be essential in achieving the governments goals of becoming a middle-income country by 2030. KEYWORDS: Uzbekistan, investment policy, infrastructure development, agriculture, education, tourism, economic growth, foreign investment, agro-industrial parks.

How does transportation facilitate regional economic development? A heuristic mapping of the literature

Despite a growing body of literature, the relationship between transport investment and regional economic development remains elusive. Individual studies highlight certain aspects but neglect others, and yet do not add up to a holistic framework. This paper engages with this gap by developing a holistic conceptual framework based on the synthesis of the literature. A list of variables and relationships were extracted and classified into a broad framework representing common elements of a regional economic system. Then, a causal loop diagram (CLD) was produced as a conceptual model by employing a system dynamics method that captures the interaction of the elements. The conceptual model reveals that the underlying mechanisms of regional economic development represent a complex and dynamic process engaging multiple factors, causalities, and temporal dynamics. Transport investment improves the attractiveness of regions and generates economic activities, reinforcing further investments, thereby fostering regional GDP and urban growth. The conditions of interregional transport infrastructure determine where cities can emerge and grow, and urban transport infrastructure conditions guide how big (population) and wide (area) a city can become. Three additional soft policies (urban transport, urban policies, and institutions and innovation) influence the attractiveness of regions and their economic activities. The time and scales of the policy inputs may produce different outcomes, i.e., city(ies) size and regional GDP, leading to income inequality across regions. We conclude that the generated conceptual model offers a distinct contribution by originally mapping the links between different studies and provides an overarching framework for further explorations.

Structural Racism and Pedestrian Safety: Measuring the Association Between Historical Redlining and Contemporary Pedestrian Fatalities Across the United States, 2010‒2019.

Objectives. To examine the association between historical redlining and contemporary pedestrian fatalities across the United States. Methods. We analyzed 2010-2019 traffic fatality data, obtained from the Fatality Analysis Reporting System, for all US pedestrian fatalities linked by location of crash to 1930s Home Owners' Loan Corporation (HOLC) grades and current sociodemographic factors at the census tract level. We applied generalized estimating equation models to assess the relationship between the count of pedestrian fatalities and redlining. Results. In an adjusted multivariable analysis, tracts graded D ("Hazardous") had a 2.60 (95% confidence interval = 2.26, 2.99) incidence rate ratio (per residential population) of pedestrian fatalities compared with tracts graded A ("Best"). We found a significant dose‒response relationship: as grades worsened from A to D, rates of pedestrian fatalities increased. Conclusions. Historical redlining policy, initiated in the 1930s, has an impact on present-day transportation inequities in the United States. Public Health Implications. To reduce transportation inequities, understanding how structurally racist policies, past and present, have an impact on community-level investments in transportation and health is crucial. (Am J Public Health. 2023;113(4):420-428. https://doi.org/10.2105/AJPH.2022.307192).

Socio-economic approach to transport investments evaluation

Background: Transport plays a crucial role in socio-economic and social processes. Despite the fact that transport can be considered as an independent industry, and transport development projects can be considered as independent business projects, the spectrum of transport influence has not yet been fully studied. A qualitative examination of the spheres of influence of transport shows its impact on all significant aspects of socio-economic relations in society.
 Nevertheless, classical methods of financial management are used to assess the effectiveness of investments in transport, which do not allow to fully reflect the effects arising from the implementation of such investments.
 As practice shows, the use of classical approaches does not allow us to reliably assess the effectiveness of investments in transport. The choice of approaches to assessment is directly dependent on the socio-economic model of the state. The capitalist model focuses on the income received from the implementation of any investment project, whereas the socially oriented model peculiar to Russia is initially focused on the formation of the public good.
 The latter approach, in our opinion, is strategically more advantageous on a national scale and requires wide dissemination for the purposes of financial and economic analysis
 Aim: to consider the list of methods for evaluating investments in transport and determine a set of factors that require consideration for a socially oriented economy.
 Materials and methods: the research methodology is based on the analysis of methods of financial and economic evaluation of investment projects, socio-economic analysis, as well as macroeconomic methods. The information base of the study is based on official legal and methodological information of the authorities of the Russian Federation.
 Results: as a result of the study, a list of factors that need to be taken into account when assessing the effectiveness of investments in transport within the framework of the paradigm of socially oriented public administration is determined.
 Conclusion: the study confirms that the methods currently used to assess the effectiveness of investments in transport do not fully reflect the effects arising from their implementation. The proposed approach to determining the list of socio-economic effects resulting from the impact of transport projects will improve the quality of management decisions in the transport sector.

Empirical analysis of R&D spending, transport infrastructure development and CO2 emissions in China

Over the past few decades, the transportation sector has been the largest contributor to CO2 emissions in China. Research and Development spending leads to technological innovation in the country and could affect the CO2 emission in the country. Therefore, this study analyzes the nexus between CO2 emissions, transport infrastructure and R&D spending in China. A QARDL approach was used for the data analysis, which revealed Research and Development and Transport infrastructure has a positive impact on CO2 emissions. R&D was only significant in the first 25% quantile, while transportation was significant in almost all quantiles. These results suggest that R&D spending in China is mainly allocated to the sectors that emit the CO2 emission. It is recommended that government should allocate more R&D to carbon-reducing sectors. Furthermore, the government should consider green transportation investments and renewable energy projects in the transportation sector to reduce CO2 emissions in the country.

Export Potential of Ham Yen Oranges

This study assessed the situation and analyzed the factors affecting the export potential of Ham Yen orange. This study conducted a survey using the questionnaire for 50 people, who are stakeholders in the value chain of Ham Yen oranges. The study results show that Tuyen Quang province has many potentials and advantages to develop export-oriented Ham Yen orange production. Specifically on area, productivity, and output of oranges to increase rapidly. Oranges are good quality with famous brands. The selling price is low, ensuring competitiveness; and there are many natural – economic-social factors favorable for the development of export-oriented Ham Yen orange production. However, the study also identified many difficulties and challenges. In order to develop Ham Yen orange production to meet export requirements. It is necessary to implement synchronous solutions like strongly shifting the area of ​​orange cultivation in the direction of meeting standards as follows VietGAP, organic oranges, EuroGAP, GlobalGAP ...; Application of science and technology in the stage of varieties, planting, care, harvesting and transportation of oranges. Investment in transport, infrastructure, irrigation, wholesale market, cold storage, and factory for preliminary processing, packing, and exporting products. Supporting capital, market information, training, and transfer of science and technology to orange growers; would strengthen linkages in the growth and market of their fruit, especially with enterprises that purchase, preserve, process, and export fruits.

Connecting up embedded knowledge across Northern Powerhouse cities

One of the driving rationales behind plans for major transport investment between Northern UK cities is that of connecting labour pools. Integrated labour pools, the argument goes, will give rise to agglomeration economies and subsequent growth. Behind this logic lies the idea that access to complementary skills in neighbouring cities will yield benefits for firms. Yet, at what travel time radius is access to these skills beneficial? Can a better understanding of this inform our assessment of the likely economic impact of proposed transport investments and subsequent reductions in travel times? Here we develop a method to estimate this radius based on the relationship between industry employment growth in a city and the size of employment in ‘skill-related’ sectors. Assuming car or rail travel, we find that for Northern cities the radius is around 45 min while for the South it is around 110 min. Manufacturing peaks around 45 min for the whole UK, including both North and South. Services, however, peak around 110 min in the South but 70 min in the North. A comparison between the UK’s Integrated Rail Plan and earlier proposals to invest in High Speed 2 rail and Northern rail connections uncovers lost opportunities for employment growth in Manchester, Leeds and Sheffield. This study provides a road-map for the deployment of methods from Evolutionary Economic Geography, originally developed to predict regional and urban growth and diversification processes as a function of the local skill mix, to evaluate the potential gains from transport infrastructure schemes.

Cost overruns of Belgian transport infrastructure projects: Analyzing variations over three land transport modes and two project phases

Transport infrastructure agencies are increasingly coping with strong budget constraints, while being highly under pressure to manage and upgrade an infrastructure network that meets the increasing service level expectations of all its stakeholders. Sound infrastructure management therefore includes tight cost control, a long-term vision and budget planning. Belgium has long been structurally underinvesting in infrastructure, but is in recent years trying to clear the backlog. However, it seems that cost overruns for transport investment projects – paid by the same budget as structural maintenance projects – may seriously reduce the number of critical projects to be carried out in the next years, delaying the necessary catching up process as compared to neighboring countries’ state of infrastructure (in the Netherlands, the UK, and Germany). This study analyzes quantitatively the cost developments, from the first publicly released estimates to the final execution costs, of 36 Belgian railway, road and inland waterway projects, representing a total final value of € 1,059,754,416.37 in 2020 prices, or approximately almost 10% of all transport infrastructure investments (in % of CAPEX) in Belgium during the last two decades is captured in our sample. We obtain results on the cost variation itself, and on the phase of the project in which the deviation is higher. We also investigate the transport mode as the independent variable. We find that overruns are higher in the project stage before contract awarding, and that cost overruns for road projects exceed those of rail or inland navigation projects. This case-based quantitative analysis, together with the variables researched in the case analysis, will enable Belgian governing bodies and transport agencies, separately responsible for one mode per region, to learn from these deviations, and to prioritize the need to further explore causes and develop solutions.

Using the revenues from carbon pricing - Insights into the acceptance and perceptions of particularly burdened groups

Carbon pricing is a policy instrument that is very popular with researchers and many policy makers as well. To be implemented effectively, it requires widespread acceptance by society. This paper presents an empirical study carried out in Germany directly before the implementation of its new carbon-pricing scheme for fuels in 2021. The empirical study with 83 participants focused on how different revenue use options were perceived by population groups that are particularly burdened by carbon pricing: single parents with commutes, social welfare recipients, long-distance commuters as well as pensioners with large homes. The study applied a mixed methods design involving focus group participants also completing questionnaires. The findings show a good level of acceptance of carbon pricing in view of the need to mitigate climate change and the widespread expectation that the revenues will be used to achieve this. The preferred option for revenue use are public investments in sustainable transport and climate protection. Overall, the topics discussed were often perceived as complex. The paper concludes by recommending policy makers to use combinations of revenue uses and to ensure that the overall impacts of carbon pricing and revenue use are visible to the public.

Construction projects of the German occupier in Kamnik

During the Second World War, the area of Kamnik came under the German occupation administration, which took various measures to integrate it into the Reich and make it as German as possible. Apart from Germanizing the population, these efforts also included ample investments in transport, administrative, and housing infrastructure, with which the occupier introduced its characteristic architecture into the annexed landscape. Most investments made by the German occupation administration in Kamnik were implemented between the summer of 1941 and the autumn of 1943. By employing the preserved documents or, more specifically, archival sources, plans, and photographs, the author presents historically the most important buildings and other infrastructural investments made in Kamnik during the German occupation, their “prehistory” as well as their designated use both during and after the war.

Transportation Justice in Vermont Communities of High Environmental Risk

Transportation justice studies have largely focused on metropolitan areas, and the transportation disparities in rural areas and their most disadvantaged population are not well understood. Our study explored transportation injustices in high environmental risk communities in Vermont. We found that low-income communities and people of color disproportionately face inequitable access to transportation services: they are more likely to be concerned about lack of transportation, more likely to not own or lease a personal vehicle and rely more heavily on public transportation. Our study also found that those without a personal vehicle and those largely dependent on public transportation have less access to healthy food, are likely to go hungry, have greater reports of asthma, and have less access to primary care physicians and jobs. The transportation policies in the state are also procedurally unjust. These disadvantages, combined with higher exposures to environmental risks, also pose implications for public health and well-being. A combined transition toward sustainable mobility and transportation justice should prioritize greater equity in the distribution of transportation investment in infrastructure and services; recognition of historical patterns that inform current uneven and unequal mobilities; procedural and democratic engagement of the marginalized in transportation design, planning and policy-making; a capabilities approach to plan transportation systems that improve opportunities, wellness, and quality of life for the most disadvantaged population. Consideration should also be given to designing a sustainable transportation transition that prioritizes attention for all modes of transport accessibility and mobility, including non-motorized and public transit modes, in planning and policies so that streets are not dominated by a single mode of transportation, such as cars.

Quantifying the Impact of Light Rail Transit on Commercial Property Values: New Evidence From Greater Kuala Lumpur, Malaysia

Evidence shows that improving accessibility through investment in public transport, such as urban rail transit, can have a positive impact on land values and subsequently on property values. This paper, therefore, presents empirical results on the impact of proximity to the nearest Kelana Jaya light rail transit (LRT) station on commercial property values in Greater Kuala Lumpur, Malaysia. Using the hedonic pricing model, the paper attempts to quantify these effects. The sample consists of 399 office transaction data for the years 2014 and 2018, marking more than a decade of Kelana Jaya LRT line operation in the region. The results show that an office unit located within a 400 m radius of the nearest Kelana Jaya LRT station enjoys the highest premium, reaching about 0.637%, which, at the mean, is MYR802,620 (USD200,655). However, the premium appears to decrease rapidly for an office unit located within a radius of 401–800 m from the nearest Kelana Jaya LRT station, reaching 0.232% (MYR292,320 or USD73,080 of the mean office price). From the results of this study, it can be concluded that this paper contributes to the growing literature on the positive relationship between urban rail transit and commercial property values. More importantly, this paper provides the necessary evidence for the potential implementation of a land value capture policy as an alternative source of revenue to fund or partially fund urban rail transit in Greater Kuala Lumpur, which is presently absent.

How road investment can improve economic prosperity : The case for Northern England

Good roads are critical to modern functioning society, providing flexible mobility options for people to access jobs and services via private car, by bus, or for local trips by foot or cycle. Likewise, almost all freight movements depend on good strategic and local road connections. Investment in transport, including roads, can deliver economic agglomeration and an increase in effective density, also direct user benefits, productivity gains, greater labour market participation and business investment. This paper posits that, to maximise the benefits of road investment, we need a holistic whole-systems approach to aligning policy and infrastructure investment focused on achieving sustainable economic prosperity, improved social inclusivity, environmental goals, and most critically, decarbonisation of transport and the wider economy.