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Transportation and Economic Stimulation

Zdenka Volkánová
University of Economic and Management, Prague 5, Czech Republic
Abstract—This paper discusses factors to consider when evaluating transportation economic stimulation strategies. Transportation investments can have large long-term economic, social and environmental impacts. Expanding urban highways tends to stimulate motor vehicle travel and sprawl, exacerbating future transport problems and threatening future economic productivity. Improving alternative modes (walking and cycling conditions, and public transit service) tends to reduce total motor vehicle traffic and associated costs, providing additional long-term economic savings and benefits. Increasing transport system efficiency tends to create far more jobs than those created directly by infrastructure investments. Domestic automobile industry subsidies are ineffective at stimulating employment or economic development. Public policies intended to support domestic automobile sales could be economically harmful in the long run if they increase future energy consumption and transportation system inefficiency.

Index Terms—Transportation, economic, economic stimulation, environmental

Cite: Zdenka Volkánová, "Transportation and Economic Stimulation," Journal of Traffic and Logistics Engineering, Vol. 1, No. 2, pp. 128-131,  December 2013. doi: 10.12720/jtle.1.2.128-131
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