SCGE Modeling Considering Passenger and Freight Transport

The Linear Chuo Shinkansen is expected to have economic effects on three metropolitan areas in Japan. Meanwhile, the gap between urban and rural areas will expand. The Spatial Computable General Equilibrium (SCGE) models can describe the distribution of the effect through infrastructure developments. We propose an empirical SCGE model applying an aggregated logit model for subdivided areas where only value-added data are prepared without an input-output table. However, we developed these models only for freight transport improvements. Therefore, this study aims to develop an SCGE model considering passenger and freight transport and measure economic impacts of highways and interregional high-speed railroads. Consequently, we found that total benefit was almost identical to existing trial calculation results. Using the model in this study, calculating the effects of railroad projects even in subdivided areas where input-output tables have not been prepared is possible.