Direct Transport Supply Direct Transport Demand Indirect Microeconomic Indirect Macroeconomic
Income from transport operations (fares and wages)
Access to wider distribution markets and niches
Improved accessibility
Time and cost savings
Productivity gains
Division of labor
Access to a wider range of suppliers and consumers
Economies of scale
Rent income
Lower price of commodities
Higher supply of commodities
Formation of distribution networks
Attraction and accumulation of economic activities
Increased competitiveness
Growth of consumption
Fulfilling mobility needs
Source: adapted from the European Conference of Ministers of Transport.
Economic Benefits of Transportation
Increase the scale and scope of economic and social interactions. There are a wide range of economic benefits conveyed by transportation systems, some direct (income related) and some indirect (accessibility related). They are impacting transport supply and demand as well as at the microeconomic (sector-wise) and macroeconomic (whole economy) levels. The matter remains about what is the extent of the economic benefits for specific modes and locations.