Equitable distribution of growth for utilitarian and non-utilitarian infrastructure planning

Abstract

To simultaneously address social equity and spatial equity, we develop a new type of preference modelling to distribute infrastructure resources that takes into account neighbourhood inequity effects. We compare this so-called spatial preference modelling (SPM) with the more common non-spatial preference modelling (NSPM) in terms of their compliance to two distinct perspectives of welfare theory, i.e., utilitarian and non-utilitarian welfare theory. With respect to utilitarian theory, we apply a total utility equality approach, whereas for non-utilitarian equality, we conduct a curve dominance analysis to evaluate the effect on (1) pro-poor policy, (2) inequity and (3) prosperity. A case study for the Special Region of Yogyakarta in Indonesia is used to show the difference in the effectiveness of SPM and NSPM in resolving resource allocation problems in the fields of transportation, electricity, telecommunication and freshwater infrastructures, four fields of infrastructure that differ in terms of their typology (point, linear, plane and space), initial level of development and spatial inequity. The results confirm that SPM complies better with both welfare theories than NSPM. Moreover, the curve dominance analysis reveals that infrastructure characteristics and the level of development contribute to model effectiveness. Hence, the findings can contribute to a more effective policy for equitable growth.