Raian Kudashev

Interactive companion · working paper Preliminary

Doubling Luxembourg's highways

What would residents of the Greater Region pay for twice the capacity on every highway link inside Luxembourg? This dashboard shows the model's answer, together with the traffic, speeds and vehicle-kilometres behind it, under four ways the economy can adjust.

Companion to Raian Kudashev and Pierre M. Picard, Welfare Effects of Congestion in Luxembourg and the Greater Region (working paper). Every number is read from the saved model outputs; nothing is re-estimated in the browser.

Preliminary results. These are results from a working paper; numbers may change as the paper develops. Feedback is very welcome: r.kudashev@vu.nl.

Key model assumptionsclick to expand
Scenario
Map layer

Map

Who gains, by country

Willingness to pay is the income a resident would give up each year to keep the doubled highways. Tax revenue follows workplaces, so Luxembourg collects most of the fiscal gain even though residents across the border gain as well.

Willingness to pay per resident

€ per resident per year, by country of residence

Change in tax revenue

€ billion per year, by country

What the willingness to pay is made of

€ per resident per year, by country of residence and channel

Six places up close

Traffic and vehicle-kilometres

Capacity relief shortens trips at first, but once workplaces and homes respond, people commute further. The time saving almost disappears while vehicle-kilometres keep rising, and traffic moves off primary roads onto the highways.

About this dashboard

This page accompanies the working paper by Raian Kudashev and Pierre M. Picard. The quantitative spatial model combines recursive-logit route choice on a simplified road network with location and workplace choice across 1 km cells in Luxembourg, France, Belgium and Germany. Congestion follows a BPR volume-delay function, t = t̄(1 + α(f/k)β), with α and β estimated from traffic-camera data. The counterfactual doubles capacity k on the treated highway links inside Luxembourg.

Credits: route-choice formulation after Fosgerau, Frejinger and Karlström (2013); validation against Duranton and Turner (2011), American Economic Review 101(6), whose commuting-distance, vehicle-km and traffic-diversion elasticities the model reproduces closely (details in the paper); the BPR volume-delay function of the US Bureau of Public Roads. Data sources are listed in the paper. Traffic figures are commuter trips in vehicle equivalents: one modelled commute leg per road commuter.