What Are Spillover Effects in the Context of Urban Transportation Infrastructure? A Video Explaining This Topic Is Now Available

JICA Ogata Sadako Research Institute for Peace and Development (JICA Ogata Research Institute) has released a video titled “Spillover Effects of Urban Transportation.”

JICA Ogata Research Institute is working together with the Infrastructure Management Department of JICA, to leverage spillover effects of urban transportation infrastructure development. The project team reviews the spillover effects of past infrastructure projects and proposes a workflow for analyzing and utilizing the spillover effects from the upstream stage of urban transportation development.

Huge funding is necessary to develop large-scale urban transportation infrastructure. As infrastructure is built, private investment increases in the surrounding areas, public transportation-oriented urban development (TOD) progresses, and tax revenue such as property tax (or land value as a source of taxation for property tax) is expected to grow continuously. These are the spillover effects of urban transportation infrastructure, which are considered to provide financial sustainability in infrastructure development. To utilize spillover effects in infrastructure financing, it is beneficial to have sufficient discussions from the upstream stage of developing urban transportation master plan and to have a common understanding with the partner country's government.

The objectives of this explanatory video are to promote the idea of the spillover effect of infrastructure development and its potential use in infrastructure finance, and to help promote dialogue and concrete collaborations among practitioners in Japan and developing countries. Suzuki Tomoyoshi, a research fellow at JICA Ogata Research Institute, and Kawahashi Takehiro, a member of the Infrastructure Management Department of JICA, provide an explanation of spillover effects. In addition, Yoshino Naoyuki, director of the Financial Research Center of the Financial Services Agency of Japan, explains their importance. Please check the video from the link provided below.

Spillover Effects on Urban Transformation