Dynamic effects of travel time savings play an important role in the impact of infrastructure projects

Dynamic effects of travel time savings play an important role in the impact of infrastructure projects

April 13, 2015

In a report for the Danish Ministry of Transport, Copenhagen Economics shows that if only a minor share of travel time savings following an infrastructure investment is converted to work, it will result in significant extra benefits. 

 

Furthermore, improved infrastructure has direct positive spin-offs for the production and productivity in companies.

 

It is often argued, that this is so. However, when analysing the socio-economic benefits of infrastructure investments in Denmark, such so called ‘dynamic effects’ are not taken into account today. Thereby, the total value of infrastructure investments is underestimated.

 

With the analyses by Copenhagen Economics, the Danish Ministry of Transport takes the first step towards estimating the value of dynamic effects of infrastructure investments. The report builds on case studies of road sections in Denmark.

 

Read the report here

 

For more information, please contact Partner Martin Hvidt Thelle