Scandinavian Working Papers in Economics

Working papers in Transport Economics,
CTS - Centre for Transport Studies Stockholm (KTH and VTI)

No 2013:34: An ex-post CBA for the Stockholm Metro

Maria Börjesson (), Daniel Jonsson () and Mattias Lundberg ()
Additional contact information
Maria Börjesson: KTH, Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Daniel Jonsson: KTH, Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Mattias Lundberg: KTH, Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden

Abstract: This paper performs an ex-post cost-benefit analysis (CBA) of the Metro system in Stockholm built in the 1950s. We find that the Metro was socially beneficial and that the largest benefit of the Metro is its capacity, making it possible for many people to travel to and from the city center. We also assess the significance of the wider economic impacts due to labor market distortions and the land-use effects in the case of the Stockholm Metro. The wider economic impacts increase the consumer surplus with 48%, and the yearly income in the county with 3.7%. A land-use model is used to analyze how the land-use has been influenced by the Metro over the years 1956-2006. The land-use model indicates that the historical centralized planning of housing along transit corridors has developed the region into a more dispersed region than if it had been planned according to the present inhabitants’ preferences. Moreover, we find that the land-use impacts from the investment itself seem to be small, but the land-use impacts from planning accompanying the decision to build the metro have been substantial.

Keywords: Ex-post evaluation; Cost-benefit analysis; CBA; Appraisal; Land-Use modeling; Metro; Wider economic impacts; Rail investments

JEL-codes: C25; D61; J22; R41; R42

27 pages, November 20, 2013

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CTS2013-34.pdf PDF-file 

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