Cost and Quality

From time to time, I see people assume that low-construction cost infrastructure must compromise on quality somehow. Perhaps it’s inaccessible: at a Manhattan Institute event from 2020, Philip Plotch even mentioned wheelchair accessibility as one factor leading to the increase in costs since the early 1900s; one of my long-term commenters on Twitter just repeated the same point. Perhaps the stations are cramped: I can’t count how many times I’ve heard the “transit riders deserve great stations” point from various Americans (there are several such examples in the thread in the last link alone), or for that matter from the people who built the Green Line Extension, and even Korean media got in on the action, falsely assuming that the spartan, brutalist stations of the Washington Metro were cheap (in fact, Washington is building an above-ground infill station for around an order of magnitude higher cost than Seoul’s cost for an underground infill station).

Please, stop.

If you want to know what very low-cost metro construction looks like, recall that the existing about 104 km (about 57 underground) Stockholm Metro was built in the middle of the 20th century for $3.6 billion in 2022 dollars. Here’s how the stations look:

Source: Wikipedia, by Tim Adams; description in text below

Stockholm is famous for its exposed rock: the hard gneiss forms natural arches, and the T-bana elected to paint it over from the inside, producing the bright blue-and-white contrast with dark blue leaf paintings depicted above at T-Centralen. The stations look drastically different from one another, with many examples available from UrbanRail.Net, Flickr user Dyorex, Flickr user Kotka Molokovich, and the travel site Walk Slow Run Wild.

Swedish construction costs today are several times higher, but remain below world average, and are nearly a full order of magnitude lower than in New York. The stations remain artistic, but this coexists with consistent, standardized engineering specs, modified based on local conditions only when necessary. Citybanan’s Odenplan is not at all spartan; the entire station, berthing 214 meter trains mined below the T-bana station by the same name, cost $250 million in 2022 dollars, which cost includes not just the station but also 2 km of mined tunnel. The data that I’ve seen while researching our Sweden case suggests that Nya Tunnelbanan station costs are dominated by civil infrastructure and not systems or finishes, which look like they’re about a quarter of overall station costs, rather than nearly half as in New York. Nice art is not expensive; for that matter, New York’s subway stations have pretty tiles, and this includes old stations predating the 1930s’ cost explosion.

Moreover, I doubt it was the case when the system was first built, but nowadays the entire T-bana is accessible to wheelchair users. In fact, a number of metro systems have made themselves fully accessible or are in the process of doing so, generally at low costs; I have some numbers from 2019, and the programs cited for Berlin and Madrid are behind schedule, but Berlin seems to be sticking to a budget of 2 million € for an ordinary station, and even taking into account inflation that Berlin needs one elevator per station and most cities need three, this isn’t quite $10 million per station, a cost similar to that of Madrid’s ongoing program. In New York, the cost cited for accessibility is $70 million per station.

What goes on here isn’t really a matter of high quality for high cost. In fact, when Eric, Elif, and I researched the New York case, we were stricken by how little of the problem concerned actual quality or safety regulations (for example, the fire code in New York in practice requires mezzanines at the depth of Second Avenue, but does not require them to be full-length). The oversize stations are neither grand public atria nor revenue-generating commercial spaces, but rather conventional stations flanked by excessive amounts of back office space. The lack of standardization concerns fittings, not art. The massive costs of New York elevator installation are barely about redundancy (a requirement driven by low but fixable reliability) and largely about utility conflicts, bad-and-worsening project delivery, and the soft costs crisis.

Making the user experience worse is an easy way to signal that one is cutting costs. It’s a combination of vice-signaling and prudence theater. It also has little to do with how actually low-cost infrastructure construction programs look like. They can be highly standardized even without the artistic component found in Sweden and Finland, and then people may complain that the system looks bland and corporate – but bland and corporate is not the same as spartan, it just means it looks like the 21st century and not the imagined 20th.

Good systems are certainly not willing to make compromises on human rights and build inaccessible infrastructure. In Seoul, there are massive protests by disabled people demanding that the Seoul subway go from 93% to 100% accessible and that the bus fleet immediately be transitioned to low-floor equipment, and meanwhile, New York and London both loiter around 25-30% accessibility. The conservative governments of the state and the city both dither, but past competence by Korea has led to high expectations by users, in the same manner that people in developed country protest inequality and poverty even fully knowing that it’s nowhere near as bad as in the third world. While I don’t know Seoul’s accessibility costs, I do know a deep-bored Line 9 extension with an undercrossing of Line 5 is budgeted at $180 million/km.

The Transit Lobby and Fares

Randal O’Toole has a weird blog post about our construction costs report. I say weird, because it complains that we didn’t ask certain questions that we actually did, in the executive summary: “what kind of political and decision-making process allows for such expensive projects to be approved in the first place?” in his language. It also is under the impression that Sweden and Italy are authoritarian states. I bring this up because the post suggests two reasons: the transit lobby, and user fees. These are both wrong, and I’d like to cover why.

The user fee issue

O’Toole harps on user fees:

At heart, and I keep harping on this, the real problem is the disassociation of costs from user fees. If costs have to be paid for out of user fees, then expensive and obsolete technologies will automatically be rejected. But if there is no relationship between costs and real measurable benefits, then there is no need to control costs at all. Any agency leader who supports lower-cost solutions loses out because their agency’s budget will be smaller and any politician who tries to control costs loses out because they bring less money into the pockets of potential campaign contributors.

The reason we don’t talk about this in the report is that high-subsidy transit systems don’t generally cost more to build and operate than low-subsidy ones. The norms in Asia are that rapid transit service should be operationally profitable; Japan won’t even build subways unless they can show a 30-year payback period, i.e. 3.3% financial return on investment in an economy whose natural rate of interest is maybe 1.5%. The norms in Europe are that intercity rail should be profitable but anything else is a social service that should receive subsidies.

And as it happens, there’s no systemic cost difference between Europe and rich Asia. Construction costs span the entire non-US range in both places: South Korea has very low construction costs and so do Southern Europe, Turkey, and the Nordic countries; Singapore and Hong Kong compete for highest costs outside the United States and so does Britain. In Hong Kong, if anything, the MTR’s development profits have enabled it to waste more money on construction, since it still gets state money for construction on top of the development profits, which have no accountability.

Transit ideology and modal warfare

O’Toole and other Americans with similar pro-car, anti-rail views like Wendell Cox and Robert Poole has an obsession with counting some kind of subsidy metrics. He talks about the transit lobby, and he ends up misunderstanding how the politics of mass transit works elsewhere. But, in short, modal warfare is not usually about construction of subway lines, but about road diets and bike lanes.

For example, in Germany, Kai Wegner just did very well in the Berlin election on a platform of more parking spots and opposition to everything the Green Party does. CDU came first for the first time since 1999. But Wegner supports more U-Bahn construction and attacked the left-wing coalition for dithering on the subject. His transport ideology is not the same as that of American mode warriors; it’s cars-and-trains urbanism, with cars getting more attention than trains. Social democracy for that matter has the same ideology, but with a greater role for trains – and it’s this ideology that built around 100 km of majority-underground metro in Stockholm for $3.6 billion in 2022 dollars.

I bring up Germany because we’re seeing the linkage between fares and operations vanish in real time, due to fallout from the 9€ ticket from last summer; see coverage on this blog here and here. Before corona, public transport fares covered around half of operating costs Germany-wide (source, p. 36), and some of the big city rapid transit system broke even (at least the Berlin U-Bahn and I think also the Munich U-Bahn). The perceived success of the 9€ ticket is changing Germany’s transit advocacy ideology – but in the exact opposite direction from more construction, whatever the cost. No: the same advocates who center low fares oppose subway construction, viewing it as a sop to cars-and-trains urbanism and preferring surface light rail instead. The same is true in the United States: the sort of people who support free transit and sue agencies that raise fares usually also think rail investment is racist and money for transit should go to bus operations.

The transit lobby

As soon as it’s clear that there are different ideologies of mass transit, the question of the transit lobby gets murkier. O’Toole, rooted in modal warfare, says of construction costs “The real answer, I suspect, is that the transit lobby has persuaded the public that transit is all good and no bad. This in turn persuaded politicians that they can spend as much as they want on transit (unlike freeways) with no political backlash.” But there’s a strong lobby in support of urban rail construction everywhere, across the entire cost range, including in our low-cost examples.

The US doesn’t really have a stronger transit lobby than Sweden or Italy or Turkey (or Germany or France or Japan, etc.), unless one defines “transit lobby” as “builds unusually expensive transportation infrastructure.” The typical federal funding formula in the United States is 80% cars, 20% transit; in Germany it was around 55% cars, 42% rail, 3% canals in the Grand Coalition. In Sweden, cities have transitioned to tolerating more disruption for drivers and less for pedestrians on the feminist grounds that drivers are disproportionately men. The ability of transit riders to both get a larger share of the funding and make the cities more walkable and bikable at the expense of the convenience of car drivers is unusually weak in the United States by developed-world standards.

In some cases, it goes the other way: a weak transit lobby leads to higher costs, due to political impositions. In Tampa, an attempt by the transit agency to increase bus frequency somewhat and provide bus shelter had to be pitched as BRT, and then the DOT extracted surplus and demanded that the agency get federal BRT funding for repaving all lanes used by the buses with concrete – lanes that were to be shared with cars and trucks, rather than dedicated to bus service. This has led some advocates to propose that a stronger transit lobby is what’s needed to improve transit efficiency… except that New York is the worst.

There are real political reasons for why the US has such high infrastructure construction costs; this is not just transit – road tunnels cost a lot more per km in Boston and Seattle than in Berlin and Stockholm and Paris and Madrid. We go over them in the report. I urge people to go read it and focus on issues of politicization, bad-and-worsening procurement norms, lack of interest in interagency coordination, and the subordination of expert civil servants to incurious political appointees. The modal warfare that O’Toole engages in is pretty irrelevant in either direction; in countries with functional infrastructure construction programs, people who are that political never have any input other than a very broad yes-or-no decision over megaprojects, and not even that level of input over smaller projects (Nordic decisionmaking about road construction is notably depoliticized).

How Failed Leaders Can Look Like Doers

Congratulations – you’ve finally finished a major project. The project was not done well – it cost too much and took too long. But somehow, the people responsible for the mess get to claim credit for success and are treated as great leaders who took tough decisions. Why?

The issue here is that poorly-executed projects look like great challenges. Maybe it’s a very short subway line that somehow cost like a multi-line megaproject. Maybe it’s a replacement-level city airport that took three times as long to build as anticipated. Maybe it’s a tank that’s only been used in parades even as the military is fighting a land war where it would be useful if it worked – a land war that is itself a major project even when the target is a poor country less than one third the population of yours. Maybe it’s a corporate IT project that’s dragged for so long that the software is almost out of support; this is far from a purely public-sector problem – every corporate manager and every person who’s worked for a corporate manager knows many such examples.

These are not, objectively speaking, huge challenges. Objectively speaking, Second Avenue Subway was 2.7 km of tunnel and three stations in a dense but not historic urban environment, under a straight avenue much wider than the width of a two-track tunnel with station platform, with no undercrossings of older subway tunnels, in conventional hard rock geology. A medium-cost city like Paris or Berlin would build this and a few other similar lines at once (to be fair, Berlin would probably be building other lines and not Second Avenue Subway, judging by its project prioritization). But New York can’t build, and therefore this 2.7 km tunnel is in today’s money a $6 billion project.

Once the project has been so mismanaged, it looks like something much bigger than it really is. It took many years and had a lot of administrative headaches (which were mostly self-inflicted). Its budget was so large that it was overseen at the highest levels of the government or corporation that built it, by heavyweight leaders who everyone in the organization has learned to lower their head around and who therefore don’t face serious criticism for their own poor decisionmaking. Those heavyweight leaders, insulated from what people really think of their competence level, then go ahead and portray themselves as doers, who managed to get such a difficult project done – when the only reason it was difficult is that they existed.

Good projects don’t have any of this. They look easy. They also tend to be small by local standards, because organizations expand to their limits, and so if you’re Paris and 200 km of Grand Paris Express are just beyond your managerial limit, you will still do that, and then those short Métro extensions of a few stations at a time look trivial and are beneath the notice of the political heavyweights who it’s impolite to speak in the company of.

Good project are also run by professionals who face regular, uncontrolled criticism, and not by heavyweights who surround themselves with lackeys and yes-men. So on top of looking easy, they also tend not to be run by the sort of toxic personality who having sabotaged the organization’s capacity then turn around and claim credit for the completion of the project. Manuel Melis Maynar knows exactly what his value is, but he’s an engineering professor rather than a marketing blowhard.

A better attitude than “at least they got [difficult-looking project] done” is then to look at the project’s true challenge – in the case of a subway it’s its length with some controls for undercrossings, network complexity, and the historic and geological sensitivity of the site. If the project was unduly expensive or lengthy for the challenge, those who claim credit for it are ideally to be treated as lepers rather than heroes, and should be replaced by people who were responsible for less telegenic but better-run comparanda. As always, it’s better to imitate success than to imitate failure.

Quick Note: Catalunya Station

Barcelona’s commuter rail network has a few distinct components. In addition to the main through-running sections, there are some captive lines terminating at one of two stations, Espanya and Catalunya. Catalunya is especially notable for its very high throughput: the system feeding it, the Barcelona-Vallès Line, has two running tracks, fanning out onto five station tracks, of which only three are used in regular service. Despite the austere infrastructure, the station turns 32 trains per hour on these tracks. I believe this is the highest turnback rate on a commuter rail network. The Chuo Line in Tokyo turns 28 trains per hour on two rather than three tracks but it’s with the same two running tracks as the Catalunya system, and with considerably less branching.

I bring this up because I was under the impression Catalunya turned 24 rather than 32 trains per hour when writing about how Euston could make do with fewer tracks than planned for High Speed 2. But several people since have corrected me, including Shaul Picker (who looked at the timetables) and planning engineer Joan Bergas Massó (who, I believe, wrote them).

The current situation is that the Vallès Line includes both proper commuter lines and metro, sharing tracks. The commuter part of the system comprises two branches, Terrassa carrying S1 and short-turning trains on S7 and Sabadell carrying S2 and short-turning trains on S6; some trains skip stops, but it’s not a consistent pattern in which S1 and S2 run express and S6 and S7 run local. A branch entirely within the city is signed as a metro line, designated L7. Currently, all L7 trains use track 4, turning 8 trains per hour, while the other lines use tracks 1 and 2, turning 24 trains per hour in total.

I stress that while this is a commuter line – it goes into suburbia and descends from a historic steam train rather than a greenfield metro – it is not connected with the mainline network. So it’s easier to turn trains there than on an intricately branched system; the Chuo Line is not as hermetically sealed but is similar in having little other traffic on it than the rapid trains from Tokyo to its in-prefecture western suburbs. Nonetheless, there are multiple branches and stopping patterns; this is not a metro system where all trains are indistinguishable and passengers only care about the interval between trains rather than about the overall schedule.

Anne Hidalgo Hates Paris

Paris has depopulated by 123,000 people in 10 years, or about 5.5% of its population. Normally, this should be cause for alarm: it means either mass abandonment of the city, or, if rents are up, insufficient quantity of housing. But not so according to Mayor Anne Hidalgo, who celebrates the city’s depopulation. Hidalgo – and the New Left urban tendency that she’s so celebrated for – manifestly dislikes her own city so much that she thinks it’s a good thing people of lower incomes are displaced from it to the suburbs; she calls it good news. Why?

The standard excuses

There are specific complaints about overcrowding in Paris, but these are conflated with density. Paris is famously very dense – around 26,000/km^2, excluding the Bois de Vincennes and Bois de Boulogne, both of which extrude from the Périphérique, which otherwise acts as the city’s limit. It is also rather overcrowded: in 2013, INSEE reported that the average dwelling size per person in the city was 31 square meters, which may be the worst in the developed democratic world – Tokyo is at 33 by one calculation, and I believe Seoul is about 32 nowadays, while German and Dutch cities are in the 40s (Amsterdam is at 49).

However, Paris’s overcrowding is not about density, and Hidalgo’s dream of sending the working class to the suburbs is hardly going to give them space. Per the same INSEE source, the dwelling size in the Petite Couronne was actually lower per capita than in the city: Val-de-Marne and Hauts-de-Seine, both fairly wealthy departments, are at 31 just like the city, and infamously poor Seine-Saint-Denis is at 27. Note that Paris is richer than its suburbs – this is how Seine-Saint-Denis is so overcrowded – but the same income gradient is found in Stockholm, and there, the city is at 33 and suburbs like Huddinge and Södertälje are at 35.

So the problem isn’t that Paris is too dense – if it were, the Petite Couronne would have the residential space of Amsterdam, or at least Vienna (which is at 36). Rather, the issue is that up until 2013, little housing was built in Ile-de-France.

YIMBY region, NIMBY city

The overcrowding levels for Ile-de-France are from 2013. But in the last 10 years, there has been a building boom, entirely in the suburbs. Yonah Freemark has the best introduction to this issue that I’ve seen in English. In 2014, the housing production in Ile-de-France was around 3.5 per 1,000 people and had been for a generation. In the next two years, this figure doubled, and would stay around 7/1,000 at least through 2019, when Yonah wrote his paper.

Little of this new housing is in the city. In 2021, housing production in Ile-de-France was 72,000, a little less than 6/1,000 people, of which 2,600 units were in Paris, or 1.2/1,000 people. While housing production in the region intensified starting in the mid-2010s, it did not in the city – production in 2019 was lower than in 2014 and has since fallen further. This is not quite a matter of suburbanization and building where there’s more space, because in 2021 the Petite and Grande Couronnes had identical housing production rates (both about 6.8-6.9), and before corona, the Petite Couronne had a substantially higher rate, 8.6 vs. 7.2. Rather, it’s a matter of a growth plan done in tandem with the construction and upgrade of suburban rail, as part of a transit-oriented development plan.

And practically none of this plan concerns the city. This is not because there’s no space: the city is full of high-rise residential housing, typically social projects of around 12-15 floors, and conversely there are sections only built up to 3-4 floors, low enough that the buildings can be replaced. There are still railyards inherited from the steam era that have not been redeveloped yet in the manner of Bercy. Yonah’s paper talks about the top-down nature of the regional growth plan, which has overruled local NIMBYs in the suburbs; but in the city, perhaps the national elites who have little trouble telling a suburb that the needs of the state trump the needs of a mayor are reluctant to do the same out of an emotional reaction to the city.

Hidalgo’s role

Hidalgo has has little trouble overruling NIMBYs on matters that are important to her. The trickle of housing that is built in the city is disproportionately social, often in wealthy areas, where the mayor enjoys needling rich snobs. The same snobs who look down on social housing also look down on taking public transport alongside the hoi polloi; public transport usage in the city is very high, but the wealthiest arrondissement, the 16th, has a fairly large share of drivers, 26% compared with a city average of 12% (see table here). And Hidalgo has little trouble overruling such snobs when she redoes streets to give their cars less space so that there is more room for cycle paths, bike share docks, and wider sidewalks.

So if so little housing is built in the city, it’s not because Hidalgo is powerless in the face of NIMBY opposition. No: she is the NIMBY opposition to growth. No wonder she thinks it’s a positive thing that the working class is moving to the suburbs.

Why is she like this?

The New Left has always been uncomfortable with growth and production. Instead, it centers consumption. Its theory of the city is about consumption, and thus, its take on matters like growth, decline, gentrification, displacement, and housing centers consumption amenities, in which the city itself is what is being consumed. It pays little attention to job growth and instead tells a story of the middle class chasing some artistry, which is not in evidence in either patterns of development or what the urban middle class says drives its locational choices.

In Paris, this is seen in the museumification of the city. It’s a middle class that feels a little guilty about its privileges, and therefore Hidalgo will make sure there’s some social housing in the city for the poor, but the idea that the working class could just afford market rate and live in the city at scale (which it can in YIMBYer cities like Tokyo) is unthinkable to her and to generations of New Left urbanists. If poorer people leave, it’s a victory for the New Left: there are fewer poor people to take care of. Stalin promised socialism in one country; Hidalgo and her left-NIMBY counterparts in the United States and Germany build socialism in one county.

This also cascades to transport policy. Hidalgo has been very good about removing cars from the city – but the city already has a 64% public transport modal split and only a 12% split for cars. It’s more important to grow the city and allow people to move into it rather than out of it than to squeeze those last 12%. Migration out of the city is nothing to celebrate; unless those people are moving to a comparably car-free place like Tokyo, Stockholm, or Barcelona, it’s a net negative for everyone who cares about modal shift.

More broadly, Hidalgo and the New Left care little about how people get to work; Hidalgo is not involved in any plan to improve public transport in the region, and the high-level socialist in the region who was, Elisabeth Borne, is currently serving as prime minister under Macron while Hidalgo allied with far-left forces, including Putin apologists (which she herself is not), to form NUPES in opposition. Instead, they try to create little bubbles where the middle class can feel good about its own consumption while changing little at macro scale. This ideology is, in practice, to the pedestrian, city center, and to the car, the world.

The hate for the city

There are places in the United States that are notorious for their combination of left-wing politics, extreme NIMBYism, high rents, and an entrenched local middle class that looks down on the consumption of the workers who it has displaced. They are never major cities: New York has people with these attitudes but they don’t really run the city – New York’s NIMBYism comes from other interest groups. Rather, they are small places, often college towns or resort towns; Aspen and Boulder are both notorious for it.

The museumification of the city is the product of the ideology of turning Paris from a productive city with millions of jobs that one gets to on the Métro or RER into an enclave for rich people who don’t need to work outside the home. If you want work, you live and work in the suburbs and unless your commute lines up perfectly with the orbital lines in Grand Paris Express, you drive. It’s casual hate for the city, by people who don’t like change and don’t like sharing space with other people, and only differ from the snobs of the 16th in that they are the snobs of the Left Bank instead.

Our Construction Costs Reports are Out!

Both the New York-specific report and the overall synthesis of all five cases plus more information from other cities are out, after three years of work.

At the highest level, it’s possible to break down the New York cost premium based on the following recipe:

To explain the animation a bit more:

  • New York builds stations that are 3 times too expensive – either 3 times too big (96th Street) or twice as big but with a mining premium (72nd and 86th Streets). The 2.06 factor is what one gets when one takes into account that stations are 77% of Second Avenue Subway hard costs. This is independent of the issue of overall train size, which is longer in New York than in most (though not all) comparison cities.
  • New York’s breakdown between civil structures and systems is about 53.5:46.5, where comparable cases are almost 3:1. This is caused by lack of standardization of systems and finishes, which ensures that even a large project has no economies of scale. This is a factor of about 2.3 increase in system costs, which corresponds to an overall cost increase of a factor of about 1.35. Together with the point above, this implies that the tunneling premium in New York is low, compared with system and station cost premiums, which I did notice in comparison with one Parisian project five years ago.
  • Labor is 50% of the hard costs in the Northeastern United States; in our comparison cases, it ranges between 19% and 31%, and in Stockholm, which as the highest-wage comparison city is our closest analog for the United States, Citybanan’s contract costs were 23% labor. The difference between 50% labor and 25% labor is a factor of 3 difference in labor, coming from a combination of blue- and white-collar overstaffing and some agency turf battles that are represented as more workers, and a factor of 1.5 difference in overall costs.
  • Procurement problems roughly double the costs; the factor of 1.85 is 2/1.08, dividing out by the usual 8% profit factor in Italy. Those problems can be broken out in different ways, but include red tape imposed by American agencies, red tape imposed by some specific regulations, a risk compensation factor whenever risk is privatized (just not itemizing costs by itself adds 10-20%, and there are other aspects of risk privatization).
  • Third-party design costs add more. There are two ways to analyze it, both of which give about the same figure of a factor of 1.2 increase in costs: first, third-party design and management costs add 21% to Second Avenue Subway’s hard costs where various European comparanda add 7-8%, but the 21% should be incremented to 31% by adding the factor of 1.5 labor premium; and second, the inclusion of all soft costs combined is around 25% extra in Italy and 50% extra in New York, with the caveat that what counts as soft costs and what’s bundled into the hard costs sometimes differ.

I urge people to quote the cost premium as, at a minimum, a factor of 9-10, and not 9.34; please do not mistake the precision coming from needing to multiply numbers for accuracy.

I also urge people to read the conclusion and recommendations within the synthesis, because what we’ve learned the best practices are is not the same as what many reformers in the Anglosphere suggest. In particular, we urge more in-house hiring and deprivatization of risk, the exact opposite of the recipe that has been popularly followed in English-speaking countries in the last generation with such poor results.

Finally, if people have questions, please ask away! I read all comments here, and check email, and will vlog tomorrow on Twitch at 19:00 Berlin time and write any followups that are not already explained in the reports.

FDP and Vice Signaling

Finance Minister Christian Lindner (FDP) just tweeted that more investment in roads is good – because if traffic flows more smoothly then there will be less greenhouse gas emissions. Reaction was not positive, and as of when I’m writing, 16 hours later, it is mildly ratioed. People understand that this is wrong. Lindner himself probably gets this too. Understanding what’s going on here requires talking about bullshit in the philosophical sense of Harry Frankfurt, and about something that I don’t have a better name for than vice signaling.

Is it true?

Absolutely not. It’s standard in transport studies that the construction of more highways in high-demand areas induces more traffic, as people take advantage of the greater convenience of driving. Drivers drive to new destinations that they forwent or chose to take public transport to, and new developments are built in areas opened by new highway development.

There may be exceptions to this in declining areas. The United States loves building new grade-separated interchanges in declining regions. This doesn’t generate new demand, because traffic is already uncongested, and the purpose of roadbuilding there is a political statement more than transport policy. But that’s not Germany. The roads under discussion here are in growth regions: there’s a plan to widen the beltway around Munich, A99, to 10 lanes, and the federal and Berlin FDP have both badgered Berlin to build a further stage of A100 parallel to the Ringbahn, which the city wants not to under the influence of the Green Party. Both motorway projects are likely to lead to adverse mode shift if built, and Lindner knows this.

There’s a developmental argument that induced demand is actually good. Matt Yglesias has made it before, saying that if road building induces more traffic then it means people get to take more trips and are better off. Many roadbuilders have made that very argument, and others were aware of it; Robert Moses, for example, was perfectly aware that his parkways and bridges were inducing more car traffic, and was fine with it, because he thought more driving was good. But that’s not what Lindner is saying: Lindner is saying that building new motorways and keeping them without a speed limit reduces greenhouse gas emissions, which is just bullshit.

Bullshit

The term “bullshit” has a precise meaning in analytic philosophy, due to Harry Frankfurt. It comprises a type of deception about the speaker’s mindset, rather than about the facts, unlike an ordinary lie. A politician who denies a scandal they are involved with is lying: their goal is to get you to believe that they are innocent of this scandal. A politician who, having been caught in said scandal, launches a series of schlock patriotic speeches is bullshitting: their goal is to get you to think they are fundamentally aligned with your values. From Frankfurt’s original essay, we have,

Telling a lie is an act with a sharp focus. It is designed to insert a particular falsehood at a specific point in a set or system of beliefs, in order to avoid the consequences of having that point occupied by the truth. This requires a degree of craftsmanship, in which the teller of the lie submits to objective constraints imposed by what he takes to be the truth. The liar is inescapably concerned with truth-values. In order to invent a lie at all, he must think he knows what is true. And in order to invent an effective lie, he must design his falsehood under the guidance of that truth. On the other hand, a person who undertakes to bullshit his way through has much more freedom. His focus is panoramic rather than particular. He does not limit himself to inserting a certain falsehood at a specific point, and thus he is not constrained by the truths surrounding that point or intersecting it. He is prepared to fake the context as well, so far as need requires. This freedom from the constraints to which the liar must submit does not necessarily mean, of course, that his task is easier than the task of the liar. But the mode of creativity upon which it relies is less analytical and less deliberative than that which is mobilized in lying. It is more expansive and independent, with mare spacious opportunities for improvisation, color, and imaginative play. This is less a matter of craft than of art. Hence the familiar notion of the “bullshit artist.”

The statement “widening roads reduces CO2 emissions” is this kind of bullshit. It is not quite a lie: it is false, but Lindner is not especially concerned with whether it is true or false. His goal is not to persuade people that building another section of A100 and widening A99 is good for climate; nobody who cares about climate change thinks that. Rather, his goal is to position himself as the sort of person who doesn’t listen to climate advocates and will just push for road widenings. The deception is part of the positioning: if he’d said that he understands the Greens’ argument against road investment but roads are important for economic development, he’d come off as too reasonable, which is not his intention.

Sounding deliberately unreasonable is the domain of populist politicians, and Frankfurt himself and many of his followers have noticed how political bullshit is on the rise as populism grows more normalized. Nigel Farage, for example, bullshitted that smoking isn’t bad for your health. And FDP is a populist party, despite its liberal origins and relatively moderate political positioning; it swung from deficit scold at the start of the current government to tax scold precisely as inflation rose last year, the opposite of what one should expect of a Washington Consensus-following economically orthodox party.

Vice signaling

There’s a pseudo-academic term going around the web, virtue signaling. The idea is that individuals and organizations engage in actions to signal that they’re better people than they really are; companies hire consultants on diversity, equity, and inclusion (DEI) without ever doing anything about their glass ceiling and harassment problems.

But it may be more fruitful to discuss its opposite – that is, vice signaling. This is when people take actions to portray themselves as terrible people, for any number of reasons:

  • Loyalty: criminal gangs are deliberately threatening and often require that prospective members commit murder (this is a requirement to become a made man in the Italian-American mafia), because this forces new members to have crossed both a moral and a legal event horizon from which they can’t come back; populist political movements don’t require crimes, but do require ridiculous beliefs
  • Novelty: this is what in the online language of the early 2010s was called the Slate Pitch – a take that aims to be novel by saying something really out there, often by writers who can’t separate themselves from the rest of the pack by any more productive means
  • Love of power: some people lie to you, with your full knowledge that they’re lying, just to flex that they can get away with it

Lindner loves this kind of vice signaling, I think out of novelty more than anything. FDP could be a party of YIMBYism, fiscal conservatism, and digital governance; younger members of the party who identify with neoliberalism wish that it were that party. The problem is that the difference between such a party and SPD is not large; Scholz ran on building more housing Germany-wide, and there’s a fair amount of consensus in favor of this in the party’s wings. SPD’s worst attributes so far are its officious leadership anchored in the Lower Saxony clique and consequently its sluggish governance and refusal to do more to support Ukraine – but FDP has the exact same problems, Lindner having told Ukraine when it asked for aid as the war started that there was no point since they’d fall in hours either way.

So to distinguish themselves from everyone else, FDP engages in vice signaling about climate and transport. They’re not trying to convince anyone that their policies are good for climate change. Rather, they’re doing the exact opposite: they’re trying to convince center-right voters that they’re an internal opposition within a coalition that is engaging in modal shift in federal funding priorities, and that they are explicitly against any climate action, because cars are good and only annoying hippies prefer trains.

Quick Note: High Speed 2 and Euston

There was reporting in the Sun, since officially denied, that Britain is planning to cut Euston from its high-speed rail project and run trains only as far a Old Oak Common, a future development site west of Central London. I assume given the source and lack of any other confirmation that the plans are to run to Euston as planned. But what if the story is not completely fake news, and there are plans to cut on construction at Euston? I can see a cut being positive value engineering, using space at the station more efficiently.

What’s the issue with High Speed 2?

High Speed 2 is an extremely expensive line. Among proper intercity high-speed rail lines (as opposed to suburban lines running at medium speed), it is the most expensive in our database per kilometer. The projected cost as of 2019-20 is about the same as that of all lines built to date in Germany and France combined; Germany has about 1,000 km of newly-built high-speed lines and France 2,500, whereas HS2 is planned to be 530 km.

The high costs are related to some massive scope creep, including tunnels in relatively flat terrain through the Chilterns, dug essentially because the area has rich NIMBYs and the British state decided not to fight them. Those are already in advanced enough construction that I don’t think descoping them and building the line at-grade with compulsory purchase of land is viable. However, some of the scope is new stations, which British defenders of the system insist are necessary. Birmingham is to get an entirely new station at Curzon Street, and London Euston is to get a substantial increase in size, with additional tracks and approaches. This is said to be necessary for capacity reasons.

Are new stations necessary for capacity?

No. Euston today has 16 platform tracks; it had 18 before HS2 construction started. The S-Bahn-quality Watford DC line can use two; the remaining slow services at the station amount to around 10-12 trains per hour, which S-Bahn-quality terminals like Saint-Lazare on the RER E and Catalunya on the Barcelona Rodalies network can comfortably turn on four tracks; those two comparisons turn 16 and 24 trains per hour on four tracks, respectively. The services out of Euston branch more than the RER and Rodalies, but this is mostly a mix of stopping patterns, largely on the same legacy line.

Then there’s HS2 itself. The line is expected to get very high ridership, justifiably: all cities along the line are larger than their comparison cases on the LGV Sud-Est, often substantially, and the projection is that very high capacity is required, on the order of 16 trains per hour. This stretches high-speed rail to its limit: the Shinkansen, which mixes local and express trains on double track, peaks around 14-15 trains per hour, and the complexly branched TGV around 12. HS2 expects to do better perhaps through better signals but also through having a simpler stopping pattern on its most congested section, between London and the bifurcation at Birmingham Interchange, on which trains are to run nonstop.

However, 16 trains per hour can still turn on about six platform tracks. This is not easy: the Tohoku Shinkansen turns 14 on four tracks, but this is a limit case, famous not just in rail media but also in business media as successful optimization of infrastructure. Nonetheless, given how constrained the site is, it’s useful to learn from the best and not the average. If it’s possible to descope the plans to add new tracks to Euston, this should be done; present plans for Euston cost billions.

Is this happening?

Maybe. Britain is aware of the situation at Tokyo Station, although it seems more interested in looking for reasons not to learn than in learning. Perhaps very high costs are leading to a reevaluation, in which Euston can be made smaller than in current plans and trains can turn more efficiently.

But again, the ultimate source on this said nothing of this sort, and is unreliable. So who knows?

Free Public Transport, Fare Integration, and Capacity

There’s an ongoing debate about free public transport that I’m going to get into later, but, for now, I want to zoom in on one aspect of the 9€ ticket, and how it impacted public transport capacity in Germany. A commenter on the Neoliberal Reddit group claimed that during the three months of nearly free public transport fares, there was a capacity crunch due to overuse. But in fact, the impact was not actually significant on urban rail, only on regional trains, in a way that underscores the importance of fare integration more than anything.

What was the 9€ ticket?

Last year, in the wake of the Russian invasion of Ukraine, fuel prices shot up everywhere. This created populist pressure to alleviate the price of fuel through temporary tax cuts, which further exacerbated last year’s high inflation. The center-right element within the German coalition, FDP, moved away from its traditional position as deficit scold and demanded a cut in the fuel tax; as a compromise, the Greens agreed to it on condition that during the three months of reduced fuel tax, June through August, public transport fares would be cut as well. Thus the 9€ monthly was born.

The 9€ ticket applied throughout Germany. The key feature wasn’t just the deep discount but also the fact that on one ticket, people could travel all over Germany; normally, my Berlin monthly doesn’t let me ride the local trains in Leipzig or Munich. This stimulated massive domestic tourism, since people could travel between cities on slow regional trains for free and then also travel around their destination city for free as well.

What now?

The 9€ ticket clearly raised public transport ridership in the three months it was in effect. This led to demands to make it permanent, running up against the problem that money is scarce and in Germany ticket fares generate a significant proportion of public transport revenue, 7.363 billion € out of 14.248 billion € in expenses (source, p. 36).

One partial move in that direction is a 29€ monthly valid only within Berlin, not in the suburbs (zone C of the S-Bahn) or outside the system; unlike the 9€ ticket, which was well-advertised all over national and local media and was available at every ticketing machine, the 29€ monthly is only available via annual subscription, which requires a permanent address in the city, and the regular machines only sell the usual 86€ monthly and don’t even let you know that a cheaper option exists. The subscription is also not available on a rolling basis – one must do it before the start of the month, which is not advertised, and Ant6n‘s family was caught unaware one month.

Negotiations for a nationwide 49€ ticket are underway, proceeding at the pace of a German train, or perhaps that of German arms deliveries to Ukraine. This was supposed to start at the beginning of 2023, then in April, and now it’s expected to debut in May. I’m assuming it will eventually happen – German trains get you there eventually, if hours late occasionally.

What’s the impact on capacity?

The U- and S-Bahn systems didn’t at all get overcrowded. They got a bit more crowded than usual, but nothing especially bad, since the sort of trips induced by zero marginal cost are off-peak. Rush hour commuters are not usually price-sensitive: whenever one’s alternative to the train is a car, the difference between a 9€ monthly and an 86€ one is a fraction of the difference between either ticket and the cost of owning and using a car, and at rush hour, cars are limited by congestion as well. Off-peak ridership did visibly grow, but not to levels that congest the system.

But then the hourly regional trains got completely overcrowded. If you wanted to ride the free trains from Berlin to Leipzig, you’d be standing for the last third of the trip. This is because the regional rail system (as opposed to S-Bahn) is designed as a low-capacity coverage-type system for connecting to small towns like Cottbus or Dessau.

The broader issue is that there is always a sharp ridership gradient between large cities and everywhere else, even per capita. In some places the gradient is sharper than elsewhere; the difference between New York and the rest of the United States is massive. But even in Germany, with a smaller gradient than one might be used to from France or the UK or Japan, public transport ridership is disproportionately dense urban or perhaps suburban, on trams and U- and S-Bahns.

The regional trains are another world. Really, European and Japanese trains can be thought of as three worlds: very high-use urban and suburban rail networks, high-use intercity rail connecting the main cities usually at high speed, and low-usage, highly-subsidized regional trains outside the major metropolitan regions. Germany has relatively good trains in the last category, if worse than in Switzerland, Austria, or the Netherlands: they run hourly with timed connections, so that people can connect between them to many destinations, they just usually don’t because cities the size of Dessau don’t generate a lot of ridership. The 9€ ticket gave people a free intercity trip if they chained trips on these regional trains, at the cost of getting to Leipzig in a little less than three hours rather than 1:15 on the ICE; the regional trains were not expanded to meet this surge traffic, which is usually handled on longer intercity trainsets, creating standing-room only conditions on trains where this should not happen off-peak or perhaps ever.

The issue of fare integration

The overcrowding seen on the regional trains last summer is really an issue of fare integration, which I hope is resolved as the 49€ gives people free trips on such trains permanently. A cornerstone of good public transport planning is that the fare between two points should be the same no matter what vehicle one uses, with exceptions only for first-class cars if available. Ein Ticket für alles, exclaims the system in Zurich, to great success. Anything else slices the market into lower-frequency segments, providing worse service than under total fare integration. Germany understands this – the Verkehrsverbund was invented in Hamburg in 1965, and subsequently this idea was adopted elsewhere until the country has been divided into metropolitan zones with internal fare integration.

The regional trains that cross Verkehrsverbund zones have their own fares, and normally that’s okay. Intercity trains were never part of this system, and that’s okay too – they’re not about one’s usual trip, and so an intercity ticket doesn’t include free transfers to local public transport unless one pays extra for that amenity. The fares between intercity trains and chains of regional trains were not supposed to be integrated, and normally that’s fine too, because any fare savings from chaining trips on slower trains are swamped both by the headache of buying so many tickets and by the difference in trip time and reliability.

The 9€ ticket broke that system, and the 49€ ticket will have the same effect: for three months, trips on slower trains were free, leading to overcrowding on a low-capacity network that normally isn’t that important to the country’s overall public transport system.

Worse, the operating costs of slow trains are higher than those of fast trains: they are smaller and so have a higher ratio of crew to passengers than ICEs, and their slowness means that crew and maintenance costs per kilometer are higher than those of fast trains. Even energy costs are higher on slow trains, because high-speed lines run at 300 km/h over long stretches, whereas regional lines make many stops (which had very little usage compared with the train’s volume of passengers last summer) and have slow zones rather than cruising at 130 or 160 km/h over long stretches. So the system gave people a price incentive to use the higher-cost trains and not the lower-cost ones.

This is the most important thing to resolve about any future fare reductions. Some mechanism is needed to ensure that the most advantageous way to travel between two cities is the one that DB can provide the most efficiently, which is IC/ICE and not RegionalBahn.

Our Construction Costs Report

This is awkward.

I was hoping to already release the Transit Costs Project report, but we ran into difficulties after we released and then immediately unreleased; we sent the report to the MTA for feedback, we got feedback, and then we went on a binge of edits. This led to a long cycle of almosts; I thought it would be done at the end of December, then 10 days ago, then tomorrow. The revisions were not huge – there are people who read the original version and the gap between what they’ve seen and what we’re about to release is real but is also far from the difference between complete knowledge (which we don’t have and most likely never will) and complete ignorance.

We still have minor edits to do, but they’re small, on the order of less than a full day’s work for all three of us, and we can promise that the full report – including the New York report and the synthesis of all reports combined – will be out on February 6th.

Separately, I’m going to be in New York for about a month after, mostly for non-work reasons. The timing is that there’s an election in Berlin on the 12th, a redo of the city election from 2021 (oddly, not electing for a full term but for the remainder of the term that began in 2021), in which I hope the Greens do better if only so that they’re slightly ahead of SPD and not slightly behind and can replace the scandalized Franziska Giffey as mayor. If I can vote by mail, I’ll be in New York starting a little before the election; if I can’t, I’ll be starting a little later. This will include at least one more in-person event to present our findings and our recommendations for the region and the MTA, at a time to be determined but likely in the second half of February.

There’s a lot of stuff we didn’t get into the report, because of lack of space; we could have info-dumped and made the synthesis novel-length, but some things had to go (and I will defend every decision to exclude things, and if they turn out to have been necessary, then blame me for being wrong about it). So even if you read the reports you should definitely come to events and ask me specific questions about things that are related to construction costs, such as other projects in the same cities we studied, or issues of the interplay between costs and benefits, or how this applies to urban rail construction going forward.