Analysis Of Economic And Environmental Effects Of Transportation Infrastructure Investment Based On CGE Model

As the government continues to invest in transportation infrastructure,China faces the dual pressure of economic development and carbon reduction.Transportation infrastructure investment is closely related to economic development,which can reduce transport costs and transit time,promote inter-regional exchanges,improve productivity and efficiency within the region,and thus promote economic development.The construction and maintenance of transportation infrastructure requires huge amounts of energy,while also increasing greenhouse gas emissions and contributing to climate change.Therefore,in order to promote reasonable and efficient allocation of financial funds and formulate targeted transportation infrastructure investment policies,it is necessary to study the impact of transportation infrastructure investment on the operation of social and economic system and reveal the difference and correlation between the impact of transportation infrastructure investment on economy and environment.To comprehensively assess the impact of transportation infrastructure investment,this study uses a national multisectoral computable general equilibrium(CGE)model to compare the economic benefits and environmental impacts of investing in infrastructure for different modes of transportation(i.e.,rail,road,water and air).The modeling structure of this study follows the classical CGE framework,adding social welfare module and environment module in addition to production module,consumption module,trade module,investment and saving module and equilibrium module.The social accounting matrix is established,and the constructed CGE model of transportation infrastructure investment is solved and tested to ensure that the model can run stably and get the optimal solution.Indicators such as GDP,investment benefit multiplier,household consumption and social welfare are selected to analyze the impact of increased investment on the national economy,and select energy consumption,carbon emissions and other indicators to study the impact of increased investment on the environment.Through the combination analysis of policies,the economic and environmental effects of transportation infrastructure investment under 13 scenarios are compared.Our key results show that under the condition of the same amount of investment,investment in water transportation infrastructure plays a more effective role in the economy,can positively promotes household consumption and significantly improves the level of social welfare.In terms of environmental impact,investment in railway infrastructure has the largest promoting effect on energy consumption reduction,while industries with investment in water transport infrastructure have a better carbon emission reduction effect.In addition,investment in transportation infrastructure has an impact on transport related sectors,such as service,construction,and manufacturing.Finally,according to the research results,our study provides an important reference for the government to improve investment efficiency,reduce the waste of resources and rationally formulate investment plans.