In July 2016, the Transport Ministry presented an updated cost-benefit analysis of the proposed second North-South motorway in Jutland, the so-called “Hærvejsmotorvej”. In addition to the conventional user and non-user benefits such as journey time savings, reliability improvements and environmental impacts, new transport infrastructure can also impact the wider economy.
An improved transport network can lead to greater efficiency within the economy through improved links between firms, and between firms and their employees. Shortening daily commuting times by up to an hour will improve the functioning of the labour market and the product markets and entail long-term productivity gains. These economic impacts are known as wider economic benefits.
Copenhagen Economics estimates wider economic benefits of the project of an additional 6.4 bn DKK. These are in addition to the estimate of the Danish Road Directorate. The wider economic benefits result from increased agglomeration, strengthened competition and better labour market matches between workers and companies. In addition to improving road infrastructure in Central Jutland, the new highway will also ease the congested E45 highway through Eastern parts of Jutland. Therefore, a new highway will shorten travel times and increase accessibility throughout many parts of Jutland.
The study is commissioned by HærvejskomitéenDownload