Measuring the externalities of transportation infrastructure construction

Abstract

Transportation infrastructure comprises important social and economic assets and redefines the social structure and spaces according to location and scale. Due to its importance, and because infrastructure requires large capital for construction, planning and design have to consider a number of factors. However, among the factors to be considered, the indirect effect of transportation infrastructure construction has been overlooked because it is difficult to measure and quantify. Therefore, in this study, externalities of transportation infrastructure construction as indirect effects are examined based on microeconomic theories and quantified through empirical data, including induced demand as a negative externality of road construction on the supply side and commercial land value changes as a positive-demand externality on the railway construction.