Quantification of the non-transport benefits resulting from rail investment

Traditional methods of evaluation have not been very successful in accounting for non-transport benefits resulting from rail investments. But increasingly, these factors are becoming more important in well-developed transport networks, as the effects of additional links or capacity cannot be justified in transport terms alone. This paper brings together the evidence at three separate levels arguing that there are different impacts that must be investigated at different levels with appropriate methods. At the macroeconomic level, regional network effects can be identified, as can the impacts on the economy as measured through changes in output and productivity. At the meso level, the impacts relate more to agglomeration economies and labour market effects, with some additional network and environmental consequences. At the micro level, the impacts are determined by the land and property market effects. Examples of rail investment are given for each of the scales of analysis, and conclusions are drawn on the future directions and challenges for the quantification of both transport and non-transport benefits.     

Residential property value impacts of proximity to transport infrastructure: An investigation of bus rapid transit and heavy rail networks in Brisbane,Australia

Public transport investment is normally targeted at increasing accessibility which land rent theory identifies and will in turn increase land values. There is a clear policy interest in how much land values increase following a new transport investment so as to establish if there is sufficient land value uplift to capture and to help pay or contribute to investment plans. Identifying an uplift for residential land has been well studied in the context of new light rail systems and bus rapid transit (BRT) systems in developing countries but there is little evidence for BRT in developed countries.This paper has two objectives. First, to examine long term impact of BRT in a developed world context in Brisbane, Australia. Brisbane's BRT uses an open system design which contrasts with the closed system design of the successful BRT systems in South America and elsewhere, including the BRT in the suburbs of Sydney, Australia. Second, BRT in Brisbane was introduced to a network already dominated by a radial heavy rail network and this investigation recognises that the uplift from BRT introduction may therefore be different to a BRT in a single mode city. A third motivation is to consider the spatial distribution of uplift which is an essential pre-requisite to understanding the distributional impact if uplift is used to contribute to infrastructure provision.Spatial modelling is used to examine the accessibility impacts of the BRT at a global level. This is followed by Geographical Weighted Regression, used to examine the spatial distribution of accessibility using a local model.The results show that there is greater uplift in Brisbane, as compared to that identified by studies of Sydney's BRT which is likely due to the greater network coverage of BRT in Brisbane and less strong competition of rail. Land value uplift is also spatially distributed over the network giving higher uplift in some areas than others and lower values than typically found with rail based systems in developed countries. However, the degree of uplift is relatively low, with proximity to BRT stations attracting more uplift than proximity to train stations.     

Urban rail systems investments: an analysis of the impacts on property values and residents’ location

Light rail, metro and other urban rail transit systems can play a significant role in improving the attractiveness and quality of urban public transport. They can influence the attractiveness of locations near the stations and improve accessibility for these locations. Furthermore urban rail can improve a location’s attractiveness by its image effect: it makes a station appear modern and dynamic, and thus raises the status of this location.This paper summarises findings on the land-use and economic impacts of the urban rail system of the city of Naples over time and space. It examines changes in residential and non-residential (offices and retail) property prices around the newly built stations between 2001 and 2008 as well as the changes in the number of residents for the same station catchment areas. Ad hoc station control areas have been specified in order to compare the results of these changes. Results show that values in station control areas are lower than those of those of the stations catchment areas.     

Light rail development with or without gentrification?: Neighborhood perspectives on changing sense of place in Denver,Colorado

The growing and continued popularity of light rail transit systems in major United States metropolitan areas is leading to growing research on land use impacts, value generation, and contributions to gentrification. While various studies explore the fiscal and environmental influences of light rail transit development in the Denver Metropolitan Area, only recently have scholars turned their attention to gentrification and social influences. This paper analyzes how one station shapes residents' sense of place, providing more nuanced understandings of the role light rail and transit-oriented development affects perceptions of neighborhood character and place attachment. We argue that gentrification can be measured and understood not only quantitatively, but also by how people feel light rail influences their attachment to place. Residents within half a mile of the Evans Light Rail Station were randomly and anonymously surveyed with a series of demographic questions and asked to provide their experiences, observations, and opinions. With 166 household responses, we examine residents' perceptions of Evans Station and sense of place to investigate relationships between factors such as race, age, income, education, length of residency, and walking distance from the light rail station. Analysis of their responses creates a more nuanced understanding of the ways that light rail contributes to positive, neutral, and negative emotions associated with gentrification ranging from appreciation of increased accessibility, younger residents, increased property values, and new commercial development to complaints about increased density, higher rents, traffic, noise, and loss of community.     

Developing new urban public transport systems: An irrational decision-making process

The decision-making process for planning new urban public transport systems in the UK is examined by studying 11 new and planned systems. The objectives of building the systems relate to transport and development issues. A number of key factors are taken into account during the decision-making process: forecast demand, image, deregulation of buses, technological innovation, private sector involvement and the funding mechanism. The requirement for proven technology and the forecast demand for the systems reduces the choice to one of light rail or bus. The effects of bus deregulation, funding and image, essentially reduce that choice to light rail or nothing. Cost should be kept low, which suggests a bus based system, but current legislation favours more expensive light rail systems. The conclusion is that although transport planners make rational decisions within the current political framework, the framework, and therefore some of the decisions, are not rational.     

Rail transit investments and economic development: Challenges for small businesses

This research explores the impact of a new light rail line on small businesses and small business owners' ability to stay in business. Employing a mixed-method approach including business turnover analysis, surveys, and in-depth interviews in a case study on Charlotte, North Carolina, this research offers insights on the economic development challenges faced by business owners during and beyond the construction phase, showing how the construction of a light rail can permanently alter accessibility and visibility of affected businesses. Contrary to the positive impacts and benefits of light rail transit often celebrated in literature, this study shows that the significant challenges faced by small businesses during and beyond the construction phase have caused commercial displacement and altered the commercial landscape in some neighborhoods along the line. This research highlights the importance of examining practices during the construction phase to assess light rail's impacts on commercial areas. It also offers a deeper understanding of displacement processes, and aims to identify effective strategies for business retention and mitigation programs to support small businesses.     

On another track: Differing views of experts and politicians on rail investments in peripheral localities

Israeli politicians strongly support inter-urban rail investment and network development connecting peripheral localities, while transport experts voice criticism and oppose many of the planned investments. This study focuses on the lacuna in transportation scholarship regarding elected officials' expectations from rail investment in peripheral areas and its potential to reduce spatial disparities, stressing that there is little research effort to reveal the reasoning of politicians when promoting transport investment and the extent to which some of the political considerations may reflect an authentic representation of public sentiments.First, an explorative qualitative study was conducted, using multiple data sets, including 12 in-depth interviews with elected officials and transport decision makers, newspaper articles, and professional documents. Analysis identified four main themes with conflicting perspectives between transport experts and politicians: Marginal vis-a-vis revolutionary effects; daily vis-a-vis less frequent activities; transport link vis-a-vis emotional link and social justice vis-a-vis social commitment. These themes reflect the tension between the discourse of accessibility led by experts and the implied discourse of mobility by politicians.The second stage was based on a large scale survey of 2008 respondents from peripheral and central localities in Israel, aimed at revealing public beliefs and preferences regarding rail investment in peripheral localities.Results showed that differences of opinion between experts and politicians do not stem only from political bias or irrelevant interests but reflect experts' inability to consider benefits that are appreciated by both politicians and the general public. The study also draws attention to different approaches to the goals of transportation systems. While the dominant voice in scholarly discourse considers accessibility gains as the main goal of transport policy, both elected politicians and residents from peripheral localities also appreciate mobility gains.     

Exploring the impacts of land use by service coverage and station-level accessibility on rail transit ridership

In this study, we employ spatial regression analysis to empirically investigate the impacts of land use, rail service coverage, and rail station accessibility on rail transit ridership in the city of Seoul and the surrounding metropolitan region. Our analyses suggest that a rail transit service coverage boundary of 500 m provides the best fit for estimating rail transit ridership levels. With regard to land use, our results confirm that density is positively related to rail transit ridership within a 750 m radius of each station. In contrast, land use diversity is not associated with rail transit ridership. We also found that station-level accessibility is as important as land use for explaining rail transit ridership levels. Finally, we conclude that development density and station-level accessibility measures such as the number of station entrances or exits and the number of bus routes at the station are the most important and consistent factors for promoting rail transit ridership.     

Czechoslovak light rail — Legacy of socialist urbanism or opportunity for the future?

This article focuses on the development of the Czechoslovak ‘rychlá tramvaj’ (‘fast tram’) systems in Prague, Bratislava and Brno. Its aim is to examine whether these systems meet the requirements of light rail and whether it is possible to continue their development as a functional light rail city transport system. A further aim is a detailed analysis of the conditions and contexts affecting the gradual development of ‘rychlá tramvaj’ schemes in three selected metropolises in the former Czechoslovakia.Urban development in Czechoslovakia was affected by the socialist planning system that constructed large housing estates on the edges of metropolises during the 1970s and 1980s. As a result, many commuters had to be moved between them and city centres daily; therefore, the necessity for high-capacity ‘rychlá tramvaj’ connections became apparent. After socio-political changes in 1989, a market economy was introduced and the trends of commercial and residential suburbanization have modified the spatial structure of the cities, and mobility has begun to be increasingly dependent on cars. In response to this, city councils departed from further development of ‘rychlá tramvaj’ schemes. Currently, the emphasis on sustainable mobility is apparent, principally because of smart city solutions, an environmental focus and a common European transport policy; thus, municipalities are rediscovering the virtues of light rail lines again. Because the ‘rychlá tramvaj’ systems from the 1970s and 1980s are still in operation, transforming them into modern light rail systems appears to be a convenient and cheap solution.     

Rationalities and materialities of light rail scapes

Light rail is a modernisation of old tram systems and a popular tool in urban development strategies throughout many European cities. Light rails continue to be built despite often having poor socio-economic returns — other similar modes could provide the same transport function at a lower cost. Through a case study, this article explores the main vision and rationalities behind light rail projects in two mid-sized European cities — Bergen and Angers — and considers how this vision has materialised in various ‘light rail scapes’. The article argues that the city shapes the light rail project, but also that the light rail re-configures and shapes the urban structures, design and planning practices within the city based on its materiality and spatial interaction with it. This means that light rail projects need to be rethought as complex urban development projects instead of just simple ‘pieces of infrastructure’. Ultimately, this work seeks to shed light on a number of ideas for future light rail research and practice.     

The feasibility of introducing light rail systems in medium-sized towns in Central Europe

The article makes a case for introducing light rail systems in medium-sized towns and cities in Central Europe and analyses the feasibility of such a project. This is particularly important in the context of the paradigm of mobilities and the idea of sustainable development. Contemporary urban planning has yet to find a satisfactory answer to the question of how to diminish the negative consequences of individual transport without placing inordinate limitations on the natural human desire for mobility. It would seem that the increasingly negative effects of car use – for which bus transport provides no attractive alternative – are fast creating a need for a means of public transport that is not only separated from street traffic, but that is also effective and environmentally friendly. These requirements are met to the fullest extent by light rail systems such as trams, tram-trains and various hybrid solutions.     

On structural inelasticity of modal substitution in freight transport

At the European level there is an increasing focus on how freight transport can be moved from trucks on roads to more environmentally friendly modes such as rail and ship. A large proportion of the transport services between OD pairs, however, cannot be substituted since there is only one alternative available. The paper investigates the magnitude of this “structural inelasticity” of modal substitution in freight transport due to a sparser layout of rail and ship-based freight networks compared to road. In the analysis we use a recent Scandinavian freight demand model covering more than 800 zones. We find that the structural inelasticity is very significant - in particular for transportation over less than 500 km. Moreover, the inelasticity varies greatly with commodity groups and between OD pairs, and it depends strongly on the port and rail infrastructure. The results suggest that pure charging instruments (road pricing for trucks) in many regions will have limited mode substitution impacts. However, if combined with structural changes in terms of improved infrastructure for rail and ship, impacts may be greater.     

A logistical perspective on the potential for modal shift of freight from road to rail in Great Britain

Freight modal shift from road to rail is a potential means by which the negative environmental and social impacts of transport can be reduced. This paper explores recent supply chain changes and assesses their impacts on the mode choice decision-making process, specifically addressing the implications for the use of rail. Despite many of the identified changes effectively making the use of rail more difficult, considerable evidence has been found of the potential for rail to attract new traffic. Much of the identified potential is unlikely to materialise, however, without improvements in rail network capability and capacity and a greater customer focus from rail freight operators.     

An evaluation of the transport to employment (T2E) scheme in Highland Scotland using social return on investment (SROI)

This paper presents findings from an evaluation of transport to employment (T2E) in rural Highland Scotland. T2E is a centrally co-ordinated shared transport service which provides access to workplace, training and childcare where no alternative transport is available. The paper assesses the social as well as economic impacts on the local community through social return on investment (SROI) analysis. Measurable social benefits were found to outweigh the investment by 3:1 suggesting the concept to be a viable solution in a climate where public transport options are limited and typically restricted by low density and dispersed populations and challenging conditions for delivery.     

Impact of high-speed rail on regional economic disparity in China

This paper investigates a fundamental question related to the massive railway infrastructure development in China. What is the impact of high-speed rail (HSR) on regional economic disparity? The question is investigated from three perspectives. First, the influence of HSR on regional economic disparity is discussed theoretically from the perspective of New Economic Geography. Second, the variation in economic disparity at both the national and regional levels is investigated using three indexes: the weighted coefficient of variation, the Theil index and the Gini index. Third, the linkages between regional economic growth and HSR is measured empirically from a quantitative and qualitative perspective using an endogenous growth modelling framework with a panel data covering the period 2000–2014. The rail network density is adopted as a proxy to reflect the quantity change in rail investment. Three accessibility indicators (weighted average travel time, potential accessibility and daily accessibility) are introduced to capture the improvement of HSR transport quality. Our findings confirm that regional economic disparity has been decreased since the development of HSR. HSR has promoted regional economic convergence in China. Specifically, the positive effect of rail network density on regional economic growth is found to be significant in the East and North, whereas the positive effect of accessibility change is found to be more significant in the Middle Reaches of Yangtze River, the Southwest and the South China.     

The impacts of high-speed trains on British economic geography: a study of the UK’s InterCity 125/225 and its effects

The arrival of high-speed trains (HSTs) leads to unprecedented time-space effects, potentially assisting face-to-face contacts in knowledge-generating process, yet its wider spatial-economic impacts are still open to debate. This research attempts to fill in this gap with empirical evidence by studying the inter-regional impacts of upgraded British InterCity 125/225 on British economic geography over 30 years. The six study routes of London-outbound trains serving major railways stations in 26 local authorities were selected as units of analysis, with the observation of differential effects both between HSTs and non-HSTs towns and among each group of towns, to understand time-space effects of InterCity 125/225 whose potential impacts on local economic strength and knowledge intensive development. The key findings suggest that the differential HST effects on British economic geography could be classified into three influential zones, namely 1-h, 2-h, and over-2-h towns. HST has had substantial and demonstrable effects in aiding this transition within a 2-h travel limit of London, thus helping to generate renewed economic growth, but that the effects have not been automatic or universal. Regarding future British HST policy, the implications arising from this study is that cities connected to a new HST could seize opportunities which non-HST cities will not be able to do so, but this is not a zero-sum situation. Instead, it involves a national strategy to develop a hierarchical network with HST between London and key regional hubs, well integrated at these hubs with intra-regional transport systems. This indicates a strong case for a finer-grained and deeper probing analysis at an intra-regional level of the potential for rail improvement as an agent of change in city-region development. We hope to report further on this in a subsequent paper.     

High-speed rail and regional development: the case of intermediate stations

High-speed rail has developed both nationally and internationally in Europe as a successful alternative to both air and road over distances of 400–600 km. Inter-city traffic, especially between the major metropolitan areas in North-west Europe has benefitted greatly from the investment in this network. This paper explores two issues: the impact on the intermediate areas between these major metropolitan areas and the creation of potential cross-border inter-regional services. The evidence shows how both levels of service and potential economic impacts have been much less pronounced in these intermediate areas. Such areas have been affected both by a failure to see greatly improved direct access to major cities other than within their own countries and a lack of new cross-border inter-regional services. The paper argues that the creation of the high-speed rail TEN-T has not met the primary objectives of reducing regional disparities in accessibility or reducing the effect of national borders on regional integration. To achieve this requires not just infrastructure provision but an appropriate regulatory framework for service provision and accompanying measures at the local level.     

Combined impacts of highways and light rail transit on residential property values: a spatial hedonic price model for Phoenix,Arizona

This study analyzes the positive and negative relationships between housing prices and proximity to light rail and highways in Phoenix, Arizona. We hypothesize that the accessibility benefits of light rail transit (LRT) and highways accrue at nodes (stations and highway exits specifically), while disamenities emanate from rail and highway links as well as from nodes. Distance decay of amenities and disamenities is captured using multiple distance bands, and hypotheses are tested using a spatial hedonic model using generalized spatial two-stage least-squares estimation. Results show that proximity to transport nodes was associated significantly and positively with single-family detached home values. As a function of distance from highway exits and LRT stations, the distance-band coefficients form an inverted-U pattern consistent with a positive longer-range distance–decay accessibility effect minus a smaller and shorter-range distance–decay disamenity effect. The positive accessibility effect for highway exits extends farther than for LRT stations. Coefficients for the distance from highway and LRT links, however, were not significant. We also test the effect of highway design on home values and find that below-grade highways have relatively positive impacts on nearby houses compared to those at ground level or above.     

The broader economic consequences of transport infrastructure investments

A major question in Economic Geography relates to the scale and nature of transport infrastructure’s contribution to the broader economy. While Cost-Benefit Analysis (CBA) is the most widely used of the three potential approaches, the recent interest in the wider economic benefits of transport infrastructure has spawned a variety of macroeconomic models. However, the estimates of magnitudes and direction of economic impacts of infrastructure by various macroeconomic models are sharply different, and these models shed little light on causal mechanisms linking transport and the economy. This paper has two aims: first, to highlight the wider economic benefits of transport infrastructure from the observed role of railroads and waterways in economic development, and two by reviewing recent theoretical developments to identify the multiple causal mechanisms which link transport and economic growth such as : market expansion, gains from trade, technological shifts, processes of spatial agglomeration and processes of innovation and commercialization of new knowledge in urban clusters (made possible by transport improvements). Hence the need for developing general equilibrium analyses of transport-economy linkages.     

Bus rapid transit impacts on land uses and land values in Seoul,Korea

Bus rapid transit (BRT) has gained popularity as a cost-effective alternative to urban rail investments; however, relatively little is known about its impacts on land-use changes and land values. This paper examines the land-market effects of converting regular bus operations to median-lane bus services in Seoul, Korea, one of the densest, most congested cities in the world. Multilevel models reveal BRT improvements prompted property owners to convert single-family residences to higher density apartments and condominiums. Land price premiums of up to 10% were estimated for residences within 300 m of BRT stops and more than 25% for retail and other non-residential uses over a smaller impact zone of 150 m. The research findings underscore the importance of introducing zoning and other land regulatory changes prior to the initiation of BRT improvements as well as applying value-capture tools to help finance investments and redress inequities.