This paper develops and applies a quantitative model of internal city structure to analyse the impacts of transport improvement in Kampala, Uganda. Using a Spatial Computable General Equilibrium Model, the authors developed a simulated version of a city in which firms and households choose their location decisions according to the cost of commuting and transporting goods across the urban space. In a rapidly developing city, with congested transport infrastructure, new and improved transport routes lead to both direct and indirect effects for the city’s residents. The model captures the direct impacts of transport changes on commuting times, and the indirect impacts on the price of goods and services, rents, and wages. It also captures the important long-term impacts on land use within the city, as both firms and residents adjust their location choices in response to these price changes, leading to greater economic benefits of transport investments through economies of scale and agglomeration effects.
The results show that transport investments that increase speeds of travel within the city result not only in an increase in the welfare of these directly affected residents, but also on residents without access to vehicles.
This paper is a part of a Global Research Program on Spatial Development of Cities, funded by the Multi Donor Trust Fund on Sustainable Urbanization of the World Bank and supported by the UK Department for International Development.
Louise Bernard, Julia Bird, Anthony J. Venables (2016) Transport in a congested city: A computable equilibrium model applied to Kampala City University of Oxford 40pp
Transport in a congested city: A computable equilibrium model applied to Kampala City