A multiregional optimization model for allocating trasnportation investments

This paper presents a multiregional optimization model which explicitly considers the direct and indirect relationships between regional growth and investments in transportation infrastructure. Consumption, demand and investments for each sector and region are derived endogenously. Trade flows are simulated by a gravity function and transportation network investment decisions are represented by 0-1 integer variables. Despite its complex structure the model can be estimated by applying in two stages the Benders Partitioning Algorithm. The model is applied to Greece to obtain a comprehensive investment plan for the transportation system.