Scandinavian Working Papers in Economics
Umeå Economic Studies,
Umeå University, Department of Economics
No 463: Regional valuation of infrastructure improvements. The case of Swedish road freight
Erik Bergkvist () and Lars Westin ()
Additional contact information
Erik Bergkvist: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden
Lars Westin: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden
Abstract: Is it possible to identify regional differences among shippers in their valuation of infrastructure improvements? The question is analysed within a random utility approach where parameters are estimated by a logit model. Data consists of a Swedish stated preference study from 1992. The results indicate that regional differences may exist but a considerable heterogeneity in the empirical material prohibit robust results in some cases. However, regional differences seem to exist when industrial mix, shipping distance and goods values are held constant. Independent of the limitations, the results should render implications to any infrastructure benefit analysis where parameters from spatial averages are used. The results are based on short term decisions and one should recognise that parameters may vary under mid- and long- term.
Keywords: Regional preferences; road transportation; freight demand; stated preference analysis; random utility models; logit model
15 pages, May 12, 1998
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