Travel time gains VS time constancy - An irresolvable contradiction?

Abstract

Systematic analyses of market developments and transport trends are the basis for the evaluation of investments in transport infrastructure in common approval procedures. Traditional cost benefit analysis (CBA) considers time savings between connected locations as a key benefit of the expansion of transport infrastructure. With reference to almost constant time expenditures for mobility, some researchers argue that there are no relevant time savings and thus no real benefits. As the literature analysis and empirical data show, both the time savings between locations after expansion and approximately constant time expenditures for mobility in the transport system over the long term can be observed. Resolving this issue is therefore the key for consistent economic analysis of transport infrastructure investments. Using a location-theoretic model and empirical data, the paper shows that expansion projects reduce transportation costs, increase efficiency, and largely translate the time savings into accessibility benefits. The centralized production and division of labor is then the basis for economies of scale efficiency gains with diminishing marginal utility. As the resulting environmental impacts and resource consumption are not adequately reflected in standard economic theory, the development in transport is largely unsustainable yielding high external costs. A possible solution would thus be to contrast the efficiency gains in the market with the life cycle costs and external costs of these investments.