Transport and the economy: a 21st century approach

This article interrogates over 30 years of transport and economics research into the relationships between transport investments and desirable economic development results. It finds the evidence in favour of this virtuous relationship at best weak and in most respects non-existent. Investing in new highways, airports and other large transport infrastructure projects does not appear to generate the anticipated economic development benefits. There is, however, compelling evidence that de-coupling policies to improve competitiveness and quality of life through reducing the demand for transport, emissions and oil dependence does encourage gains in economic performance.