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  4. Nagoya Ring Road No. 2 Drives Economic Development in the Nagoya Metropolitan Area

2018 Vol.4
Nagoya Ring Road No. 2 Drives Economic Development in the Nagoya Metropolitan Area


Nagoya Ring Road No. 2 is located on the outer periphery of the city of Nagoya. Consisting of expressway and general road sections, it has opened in stages. The general road section was fully opened in 2011, although it includes a temporary two-lane section. Meanwhile, the expressway section (Nagoya-nishi Junction to Tobishima Junction [provisional name]) is under construction. It will open in fiscal 2020 according to a July 2017 announcement, meaning that all routes comprising Ring Road No. 2 will then be open. The last link in the metropolitan ring road will be finished roughly 60 years after the urban plan was settled upon in 1957 (but it is not decided when the entire general road portion will be expanded to four lanes). This paper examines the significance of Ring Road No. 2 using the CUE (computable urban economic) model to estimate its economic impact.
The initial expressway section of Nagoya Ring Road No. 2 opened in 1988 (except the part over the sea). Over the 28 years through 2015, it had an economic impact of roughly JPY3.8 trillion on the Chukyo metropolitan area (cumulative benefits, converted to present value). Assuming total production of JPY3.8 trillion was added to the base economy in 1988, this accelerated economic development in the metropolitan area and added the equivalent of 0.49% per annum to growth on average. Assuming that the economic impact of sections of Ring Road No. 2 currently under construction emerges from 2020, the cumulative economic benefit through 2069—50 years later and 82 years since the initial opening—will be around JPY10.2 trillion.
Major benefits are likely in areas inside the ring road where there has been limited economic impact to date: from the Eastern- Southeastern section opened in 2011 and the Southwest-West II section yet to be opened. Going forward, Ring Road No. 2 is likely to play an important role in steadily driving the Nagoya metropolitan area’s regional economic growth as infrastructure underpinning the social economy.