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REGIÕES E REDES
(REGIONS AND NETWORKS)
Final lecture and
insights to the final exam
Prof. Filipe Moura
Instituto Superior Técnico / Masters in Civil Engineering – Regions and Networks
REGIONS AND NETWORKS
Transport networks and external costs
Instituto Superior Técnico
Masters in Civil Engineering
1
A.  Understanding the key concepts on:
Interaction between accessibility and land use structures
2.  Catchment areas for facilities and demand thresholds for their
sustainability
3.  Location theories, agglomeration economies, urban networks
4.  Cooperation and innovation networks and economic development
1. 
B.  And develop skills on the use of computational models for
Competition between facilities and levels of territorial coverage
2.  Evaluation of the topological structure and operational performance
of transport networks and introductory concepts on the optimization
of the design and expansion of those networks
1. 
Instituto Superior Técnico / Masters in Civil Engineering – Regions and Networks
REGIONS AND NETWORKS
Transport networks and external costs
OBJECTIVES OF THE DISCIPLINE
2
Matching the objectives with theory lectures (I)
Theory Lectures
(Theory Lecture – T; Paper Presentation by students- P)
A1
A2
A3
A4
B1
B2
Theme 1 - Transport networks design and evaluation
T1.1 - Transport networks design and evaluation
X
P1 - Network Global Evaluation Methods / Network Vulnerability
Assessment / Regional Accessibility Assessment
X
T1.2 - Transport networks design and evaluation
(Case study: Soybean transportation in Brazil)
X
X
X
Theme 2 - Public facilities and services dimensioning
X
T2.1 - Introductory lecture (Typology of facilities and introduction
to the p-median model for facility location)
X
X
P2 - Public facilities with and without hierarchy / Competitive
equipments / Obnoxious equipment / Facilities location
evaluation
X
X
Instituto Superior Técnico / Masters in Civil Engineering – Regions and Networks
X
REGIONS AND NETWORKS
Transport networks and external costs
Learning objectives
3
Learning objectives
Theory Lectures
(Theory Lecture – T; Paper Presentation by students- P)
A1
A2
A3
A4
Theme 3 – Regional economic development
T3.1 - Regional Economic Impact of Private and Public
Investment
X
P3 - Clusters and Regional Development / Regional economics /
Economic development and ICTs
X
T3.2 - The network society
X
T3.3 - Transportation networks constraints: external costs and
land-use interactions
X
Instituto Superior Técnico / Masters in Civil Engineering – Regions and Networks
B1
B2
REGIONS AND NETWORKS
Transport networks and external costs
Matching the objectives with theory lectures (II)
4
Matching the objectives with tutorials
Theory Lectures (Tutorial - Tu)
A1
A2
A3
A4
B1
B2
Theme 1 - Transport networks design and evaluation
Tu1.1 - Transport networks evaluation accessibility
appraisal - Case study presentation and data acquisition
X
Theme 2 - Public facilities and services dimensioning
Tu2.1 - Cohort-survival population projection technique
and Public facilities and services evaluation
examples
X
Theme 3 – Regional economic development
Tu3.1 - Regional Economic Impact of Private and Public
Investment
X
Tu3.2 - Deindustrialization and Urban regeneration
X
Instituto Superior Técnico / Masters in Civil Engineering – Regions and Networks
REGIONS AND NETWORKS
Transport networks and external costs
Learning objectives
5
Environmental constraints (protection
areas, river basins, etc.)
Public facilities (schools,
hospitals, landfills, etc.)
Land-uses (Urban, rural,
industrial, etc.)
Networks (Transportation, energy,
telecommunications, etc.)
Instituto Superior Técnico / Masters in Civil Engineering – Regions and Networks
REGIONS AND NETWORKS
Transport networks and external costs
Integration of course contents (I)
6
REGIONS AND NETWORKS
Transport networks and external costs
Integration of course contents (II)
Instituto Superior Técnico / Masters in Civil Engineering – Regions and Networks
7
“The study about the regional impacts of the Channel Tunnel in Europe demonstrated that, at
least in the highly urbanized centre of Europe, the removal of a bottleneck like the Channel
Tunnel does not necessarily induce economic gains in all adjacent regions. Much more important
for regional economic development than the reduction of transport costs are two other factors:
the image to be a region well integrated in the European high-speed transport network and an
active political response of the region to take advantage of opportunities like the Channel Tunnel.
Moreover, the changes in regional development induced by the Tunnel are small compared with
the expected general economic growth in the regions. In particular, the negative impacts are very
small. Therefore, no general program of the EU to compensate for negative economic impacts of
the Channel Tunnel seems to be necessary. However, the Tunnel may have specific negative
impacts for individual regions, and these may require Community action. Improvement of the
transport connections to Ireland and Scotland or assistance to the Channel ports in their efforts
to adjust to the competition of the Tunnel may be examples of this.
At a more general level, the Tunnel, as a key element in the new generation of transport
infrastructure in Europe, adds new significance to the debate about the role of transport for
spatial polarization and peripheralization in Europe and forcefully underlines the need for an
integrated transport and regional policy of the European Union.”
Instituto Superior Técnico / Masters in Civil Engineering – Regions and Networks
REGIONS AND NETWORKS
Transport networks and external costs
Examples of final exam questions (I)
8
Examples of final exam questions (II)
What are factors of production (name a few and how they are
measured) and how do economists relate them to evaluate the
performance of economic growth?
b.  How can new transport infrastructure impact the development of one
region? Use the concept of “production factor” in your answer to this
question.
c.  Comment on the conclusions of the analysis of the regional impact of
the Channel Tunnel present in the text above. In your answer, include
an explanation of the difference between economic growth and
development and why this distinction is important for policy makers.
Aspects such as direction and magnitude of the economic impacts of
new infrastructures in regional development should be included in your
analysis.
a. 
Instituto Superior Técnico / Masters in Civil Engineering – Regions and Networks
REGIONS AND NETWORKS
Transport networks and external costs
  Questions
9
Examples of final exam questions (III)
a. 
Present the definition of factor of production and some examples
(slides). These are related through a “production function” (referred also
to as “model of economic growth”) that relates some measure of output,
such as GDP, to those inputs required to produce goods and services in
the region.
Instituto Superior Técnico / Masters in Civil Engineering – Regions and Networks
REGIONS AND NETWORKS
Transport networks and external costs
  Answers
10
Examples of final exam questions (IV)
b. 
The important role of transport infrastructure for regional development is
one of the fundamental principles of regional economics. In its most
simplified form it implies that regions with better access to the locations
of input materials, workers and consumers will be more productive, more
competitive and hence more successful than regions with inferior
accessibility. There seems to be a clear positive correlation between
transport infrastructure endowment or interregional accessibility and the
levels of economic indicators such as GDP per capita. As such,
improvements in interregional accessibility are reflected in lower
transportation costs (both in terms of passenger and freight
transportation) that are production factors included in the production
function of the economic activity of the regions served by the new
infrastructure.
Instituto Superior Técnico / Masters in Civil Engineering – Regions and Networks
REGIONS AND NETWORKS
Transport networks and external costs
  Answers
11
“The Ministry of Finance and Public Administration needs to open a network of tax offices in a
group of cities located in the North of Portugal. The same Ministry asked an external expert
consultant to develop a model to identify the most suitable locations of the tax offices for this
area.
The main concern of the Ministry is to minimize the transportation costs of the population and
their employees that nowadays are all located in city F (5 employees for 3000 users of tax office)
Analyze the model developed by the consultant and answer the following questions:”
 Questions
a.  Please formulate how this problem could be evaluated and present the
main goals and constraints that should be considered in the
formulation
b.  Which type of indicators could be used to evaluate the quality of the
obtained solution?
Instituto Superior Técnico / Masters in Civil Engineering – Regions and Networks
REGIONS AND NETWORKS
Transport networks and external costs
Examples of final exam questions (V)
12
Examples of final exam questions (VI)
a. 
This problem could be formulated as facility location problem, which can
be solved using several tools that range from multicriteria decision
models to optimisation model. The model should integrate the following
goals:
 
 
 
 
 
Coverage – all settlements must be accessible
Accessibility – Travel distances, times, operating costs must be
reasonable
Public Economy – Avoid excessive investment cost
Level of Service and Used Capacity
Redundancy / Low level of vulnerability
Instituto Superior Técnico / Masters in Civil Engineering – Regions and Networks
REGIONS AND NETWORKS
Transport networks and external costs
  Answers
13
Examples of final exam questions (VII)
b. 
The indicators that could be used to assess the quality of the obtained
solution are:
 
 
 
 
 
General accessibility indicators (average travel time, standard
deviation of travel time, minimum and maximum)
Equity of access to the service (Gini Coefficient, ratios of travel
times, etc.)
Vulnerability assessment (changes on the level of performance of
the system with one or more facilities not working)
Efficiency (% of used capacity of the system)
Economy (assess the percentage of initial investment vs the
operation costs of the system)
Instituto Superior Técnico / Masters in Civil Engineering – Regions and Networks
REGIONS AND NETWORKS
Transport networks and external costs
  Answers
14