Measuring agglomeration in transport system planning: Effective density as a measure in Helsinki Region

Abstract

This paper aims to create estimates for effective densities in Helsinki Region. The context is the regional transport system, land use and housing planning process, which defines the strategic direction for the region’s transport and land use planning. Agglomeration economies is widely recognized in the literature, but correct measurements and tools for planning are yet to come. We create the estimates for effective density by combining transport cost data with job density data, which will work then as a measurement for agglomeration. We define accessibility by aggregated travel cost data, which is derived from the regional traffic forecast model. Statistics Finland’s regional data for different sectors is used for productivity measurements, which allow us to evaluate the usability and creditability of our effective density measures. The results show that our estimated effective densities have positive correlation with productivity, but we recognize the possible problems of identification and endogeneity. This is why further studies are needed, so that we can come up with more robust and reliable measurements for agglomeration and produce even more reliable information for the planning and policy processes.