How Large are Road Traffic Externalities in the City? The Highway Tunneling in Maastricht, the Netherlands

29 Pages Posted: 24 Jul 2018

See all articles by Joep Tijm

Joep Tijm

CPB Netherlands Bureau of Economic Policy Analysis

Thomas Michielsen

Tilburg University - Tilburg University School of Economics and Management; Tilburg Sustainability Center

Raoul van Maarseveen

Uppsala University

Peter Zwaneveld

CPB Netherlands Bureau of Economic Policy Analysis

Date Written: June 11, 2018

Abstract

Infrastructure projects are increasingly aiming to improve liveability, in particular in urban areas. We analyse a specific case in which an existing highway in an urban area was moved underground in order to improve intercity traffic flows and to reduce traffic externalities. As travel times within the city hardly changed, this allows for a clean identification of the value of traffic externalities. We find that the liveability benefits of such integrated infrastructure are substantial relative to the construction costs. Each halving of distance to the tunneled segment is associated with 3.5% more appreciation in house prices since the start of the project.

JEL Classification: H400, R200, R400

Suggested Citation

Tijm, Joep and Michielsen, Thomas and van Maarseveen, Raoul and Zwaneveld, Peter, How Large are Road Traffic Externalities in the City? The Highway Tunneling in Maastricht, the Netherlands (June 11, 2018). CESifo Working Paper Series No. 7089, Available at SSRN: https://ssrn.com/abstract=3215091

Joep Tijm

CPB Netherlands Bureau of Economic Policy Analysis ( email )

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands

Thomas Michielsen (Contact Author)

Tilburg University - Tilburg University School of Economics and Management ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Tilburg Sustainability Center ( email )

P.O. Box 90153
Tilburg, North Brabant 5000 LE
Netherlands

Raoul Van Maarseveen

Uppsala University ( email )

Box 513
Uppsala, 751 20
Sweden

Peter Zwaneveld

CPB Netherlands Bureau of Economic Policy Analysis ( email )

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands

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