On Measuring the Benefits of Lower Transport Costs
Despite large amounts invested in rural roads in developing countries, little is known about their benefits. This paper derives an expression for the willingness-to-pay for a reduction in transport costs from the canonical agricultural household model and uses it to estimate the benefits of a hypoth...
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| Format: | Journal Article |
| Language: | EN |
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2012
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| Online Access: | http://hdl.handle.net/10986/5878 |
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okr-10986-58782021-04-23T14:02:23Z On Measuring the Benefits of Lower Transport Costs Jacoby, Hanan G. Minten, Bart Microeconomic Analyses of Economic Development O120 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Transportation Systems: Government and Private Investment Analysis Road Maintenance, Transportation Planning R420 Despite large amounts invested in rural roads in developing countries, little is known about their benefits. This paper derives an expression for the willingness-to-pay for a reduction in transport costs from the canonical agricultural household model and uses it to estimate the benefits of a hypothetical road project. Estimation is based on novel cross-sectional data collected in a small region of Madagascar with enormous, yet plausibly exogenous, variation in transport cost. A road that essentially eliminated transport costs in the study area would boost the incomes of the remotest households--those facing transport costs of about $75/ton --by nearly half, mostly by raising non-farm earnings. This benefit estimate is contrasted to one based on a hedonic approach. 2012-03-30T07:34:59Z 2012-03-30T07:34:59Z 2009 Journal Article Journal of Development Economics 03043878 http://hdl.handle.net/10986/5878 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Madagascar |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
EN |
| topic |
Microeconomic Analyses of Economic Development O120 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Transportation Systems: Government and Private Investment Analysis Road Maintenance, Transportation Planning R420 |
| spellingShingle |
Microeconomic Analyses of Economic Development O120 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Transportation Systems: Government and Private Investment Analysis Road Maintenance, Transportation Planning R420 Jacoby, Hanan G. Minten, Bart On Measuring the Benefits of Lower Transport Costs |
| geographic_facet |
Madagascar |
| relation |
http://creativecommons.org/licenses/by-nc-nd/3.0/igo |
| description |
Despite large amounts invested in rural roads in developing countries, little is known about their benefits. This paper derives an expression for the willingness-to-pay for a reduction in transport costs from the canonical agricultural household model and uses it to estimate the benefits of a hypothetical road project. Estimation is based on novel cross-sectional data collected in a small region of Madagascar with enormous, yet plausibly exogenous, variation in transport cost. A road that essentially eliminated transport costs in the study area would boost the incomes of the remotest households--those facing transport costs of about $75/ton --by nearly half, mostly by raising non-farm earnings. This benefit estimate is contrasted to one based on a hedonic approach. |
| format |
Journal Article |
| author |
Jacoby, Hanan G. Minten, Bart |
| author_facet |
Jacoby, Hanan G. Minten, Bart |
| author_sort |
Jacoby, Hanan G. |
| title |
On Measuring the Benefits of Lower Transport Costs |
| title_short |
On Measuring the Benefits of Lower Transport Costs |
| title_full |
On Measuring the Benefits of Lower Transport Costs |
| title_fullStr |
On Measuring the Benefits of Lower Transport Costs |
| title_full_unstemmed |
On Measuring the Benefits of Lower Transport Costs |
| title_sort |
on measuring the benefits of lower transport costs |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/5878 |
| _version_ |
1764396635729690624 |