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 m...
| Main Authors: | , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/01/8957085/measuring-benefits-lower-transport-costs http://hdl.handle.net/10986/6489 |
| id |
okr-10986-6489 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-64892021-04-23T14:02:31Z On Measuring the Benefits of Lower Transport Costs Jacoby, Hanan G. Minten, Bart ACCESS TO CREDIT ACCESSIBILITY ACCOUNTING AGRICULTURAL OUTPUT ANNUAL INCOME AVERAGE BENEFIT AVERAGE BENEFITS BASIC ACCESS BENEFIT FORMULA BETTER ROAD BRIDGES CALCULATION CALCULATIONS CARRIERS COMMODITIES COMMODITY CONSTANT RETURNS TO SCALE CONSUMER CONSUMER SURPLUS CONTRIBUTION COST FUNCTIONS COST OF TRAVEL CROSSING DEBT DEMAND CURVE DEMAND ELASTICITIES DEMAND FOR TRANSPORT DISCOUNT RATE DROUGHT EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC FRAMEWORK ECONOMICS LITERATURE EQUILIBRIUM ETHNIC GROUP EXPORTS EXTENSION SERVICES EXTERNALITIES FARM INCOME FINANCIAL SERVICES FREIGHT HIGH TRANSPORT HIGHWAY HOUSEHOLD INCOME IMPACT OF TRANSPORT INCOME INCOME EFFECT INCOMES INCREASING RETURNS INFRASTRUCTURE INVESTMENT INHERITANCE JOURNEY JOURNEYS LABOR MARKET MARGINAL COST MARKETING MEDICAL CARE OPPORTUNITY COST OX-CART PAVED ROADS POLITICAL ECONOMY POPULATION DENSITY PRESENT VALUE PROBABILITY PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PROPERTY VALUES PUBLIC ECONOMICS PUBLIC INVESTMENTS PURCHASES QUESTIONNAIRE RECONSTRUCTION REGRESSION ANALYSIS RENT PAYMENTS RENTS ROAD ROAD ACCESS ROAD BUILDING ROAD CONSTRUCTION ROAD IMPROVEMENT ROAD IMPROVEMENTS ROAD NETWORK ROAD PROJECTS ROAD TRANSPORT ROAD USER ROAD USER CHARGES ROUTE ROUTES RURAL INFRASTRUCTURE RURAL ROAD RURAL ROAD CONSTRUCTION RURAL ROAD IMPROVEMENTS RURAL ROAD PROJECT RURAL ROAD PROJECTS RURAL ROAD REHABILITATION RURAL ROADS RURAL TRANSPORT RURAL TRANSPORT INFRASTRUCTURE SALARIES SALE SALES SAVINGS SECONDARY SCHOOL SOCIAL SERVICES STEEP TERRAIN STOCKS SUB-SAHARAN AFRICA TAXATION TOTAL COSTS TOTAL OUTPUT TRANSPORT TRANSPORT COST TRANSPORT COSTS TRANSPORT DEMAND TRANSPORT INFRASTRUCTURE TRANSPORT PROJECTS TRANSPORT SECTOR TRANSPORT SERVICES TRANSPORTATION TRAVEL TIME TRUCK TRANSPORT TRUE UNEMPLOYMENT UTILITY FUNCTION VALUABLE WAGE WAGES WELFARE BENEFITS WORTH 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 USD 75/ton-by nearly half, mostly by raising non-farm earnings. This benefit estimate is contrasted to one based on a hedonic approach. 2012-05-25T22:07:16Z 2012-05-25T22:07:16Z 2008-01 http://documents.worldbank.org/curated/en/2008/01/8957085/measuring-benefits-lower-transport-costs http://hdl.handle.net/10986/6489 English Policy Research Working Paper; No. 4484 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CREDIT ACCESSIBILITY ACCOUNTING AGRICULTURAL OUTPUT ANNUAL INCOME AVERAGE BENEFIT AVERAGE BENEFITS BASIC ACCESS BENEFIT FORMULA BETTER ROAD BRIDGES CALCULATION CALCULATIONS CARRIERS COMMODITIES COMMODITY CONSTANT RETURNS TO SCALE CONSUMER CONSUMER SURPLUS CONTRIBUTION COST FUNCTIONS COST OF TRAVEL CROSSING DEBT DEMAND CURVE DEMAND ELASTICITIES DEMAND FOR TRANSPORT DISCOUNT RATE DROUGHT EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC FRAMEWORK ECONOMICS LITERATURE EQUILIBRIUM ETHNIC GROUP EXPORTS EXTENSION SERVICES EXTERNALITIES FARM INCOME FINANCIAL SERVICES FREIGHT HIGH TRANSPORT HIGHWAY HOUSEHOLD INCOME IMPACT OF TRANSPORT INCOME INCOME EFFECT INCOMES INCREASING RETURNS INFRASTRUCTURE INVESTMENT INHERITANCE JOURNEY JOURNEYS LABOR MARKET MARGINAL COST MARKETING MEDICAL CARE OPPORTUNITY COST OX-CART PAVED ROADS POLITICAL ECONOMY POPULATION DENSITY PRESENT VALUE PROBABILITY PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PROPERTY VALUES PUBLIC ECONOMICS PUBLIC INVESTMENTS PURCHASES QUESTIONNAIRE RECONSTRUCTION REGRESSION ANALYSIS RENT PAYMENTS RENTS ROAD ROAD ACCESS ROAD BUILDING ROAD CONSTRUCTION ROAD IMPROVEMENT ROAD IMPROVEMENTS ROAD NETWORK ROAD PROJECTS ROAD TRANSPORT ROAD USER ROAD USER CHARGES ROUTE ROUTES RURAL INFRASTRUCTURE RURAL ROAD RURAL ROAD CONSTRUCTION RURAL ROAD IMPROVEMENTS RURAL ROAD PROJECT RURAL ROAD PROJECTS RURAL ROAD REHABILITATION RURAL ROADS RURAL TRANSPORT RURAL TRANSPORT INFRASTRUCTURE SALARIES SALE SALES SAVINGS SECONDARY SCHOOL SOCIAL SERVICES STEEP TERRAIN STOCKS SUB-SAHARAN AFRICA TAXATION TOTAL COSTS TOTAL OUTPUT TRANSPORT TRANSPORT COST TRANSPORT COSTS TRANSPORT DEMAND TRANSPORT INFRASTRUCTURE TRANSPORT PROJECTS TRANSPORT SECTOR TRANSPORT SERVICES TRANSPORTATION TRAVEL TIME TRUCK TRANSPORT TRUE UNEMPLOYMENT UTILITY FUNCTION VALUABLE WAGE WAGES WELFARE BENEFITS WORTH |
| spellingShingle |
ACCESS TO CREDIT ACCESSIBILITY ACCOUNTING AGRICULTURAL OUTPUT ANNUAL INCOME AVERAGE BENEFIT AVERAGE BENEFITS BASIC ACCESS BENEFIT FORMULA BETTER ROAD BRIDGES CALCULATION CALCULATIONS CARRIERS COMMODITIES COMMODITY CONSTANT RETURNS TO SCALE CONSUMER CONSUMER SURPLUS CONTRIBUTION COST FUNCTIONS COST OF TRAVEL CROSSING DEBT DEMAND CURVE DEMAND ELASTICITIES DEMAND FOR TRANSPORT DISCOUNT RATE DROUGHT EARNINGS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC FRAMEWORK ECONOMICS LITERATURE EQUILIBRIUM ETHNIC GROUP EXPORTS EXTENSION SERVICES EXTERNALITIES FARM INCOME FINANCIAL SERVICES FREIGHT HIGH TRANSPORT HIGHWAY HOUSEHOLD INCOME IMPACT OF TRANSPORT INCOME INCOME EFFECT INCOMES INCREASING RETURNS INFRASTRUCTURE INVESTMENT INHERITANCE JOURNEY JOURNEYS LABOR MARKET MARGINAL COST MARKETING MEDICAL CARE OPPORTUNITY COST OX-CART PAVED ROADS POLITICAL ECONOMY POPULATION DENSITY PRESENT VALUE PROBABILITY PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PROPERTY VALUES PUBLIC ECONOMICS PUBLIC INVESTMENTS PURCHASES QUESTIONNAIRE RECONSTRUCTION REGRESSION ANALYSIS RENT PAYMENTS RENTS ROAD ROAD ACCESS ROAD BUILDING ROAD CONSTRUCTION ROAD IMPROVEMENT ROAD IMPROVEMENTS ROAD NETWORK ROAD PROJECTS ROAD TRANSPORT ROAD USER ROAD USER CHARGES ROUTE ROUTES RURAL INFRASTRUCTURE RURAL ROAD RURAL ROAD CONSTRUCTION RURAL ROAD IMPROVEMENTS RURAL ROAD PROJECT RURAL ROAD PROJECTS RURAL ROAD REHABILITATION RURAL ROADS RURAL TRANSPORT RURAL TRANSPORT INFRASTRUCTURE SALARIES SALE SALES SAVINGS SECONDARY SCHOOL SOCIAL SERVICES STEEP TERRAIN STOCKS SUB-SAHARAN AFRICA TAXATION TOTAL COSTS TOTAL OUTPUT TRANSPORT TRANSPORT COST TRANSPORT COSTS TRANSPORT DEMAND TRANSPORT INFRASTRUCTURE TRANSPORT PROJECTS TRANSPORT SECTOR TRANSPORT SERVICES TRANSPORTATION TRAVEL TIME TRUCK TRANSPORT TRUE UNEMPLOYMENT UTILITY FUNCTION VALUABLE WAGE WAGES WELFARE BENEFITS WORTH Jacoby, Hanan G. Minten, Bart On Measuring the Benefits of Lower Transport Costs |
| relation |
Policy Research Working Paper; No. 4484 |
| 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 USD 75/ton-by nearly half,
mostly by raising non-farm earnings. This benefit estimate
is contrasted to one based on a hedonic approach. |
| format |
Publications & Research :: Policy Research Working Paper |
| 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 |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/01/8957085/measuring-benefits-lower-transport-costs http://hdl.handle.net/10986/6489 |
| _version_ |
1764400196151672832 |