Selected Indirect Benefits of State Investment in Public Transportation (2015) / Chapter Skim
Currently Skimming:
Pages 1-37
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 1... ...
Research Results Digest 393 April 2015 C O N T E N T S Summary, 1 Section 1 Overview, 2 Section 2 Literature Findings, 4 Section 3 State of Knowledge and Analysis Tools, 7 Section 4 Conceptual Framework for Incorporating Indirect Benefits of Transit Investments, 13 Section 5 Conclusions, 21 Appendix: Annotated Bibliography, 22 SUMMARY The economic impact of transportation investments, including transit projects and services, has been of great interest in recent years. Studies have typically focused on three aspects of economic impacts: job creation through capital and operating spending; effects on local development patterns; and direct benefits to riders (e.g., time and cost savings)
|
From page 2... ...
2trip, for all trips. Public transit in Wisconsin is estimated to provide a benefit of about $1.55 per work-related trip, $4.03 per educational trip, and $5.66 per health care-related trip.
|
From page 3... ...
3and overall economic product, as well as resulting tax revenue effects. These impacts can result both from direct spending on transit capital and operations and on benefits of transit services, including reduced travel time and costs and greater accessibility.
|
From page 4... ...
4well understood and those that are not well understood. Section 3 also identifies how generalizable the literature results are and how the indirect benefits may vary from situation to situation.
|
From page 5... ...
• A study of the fixed-route bus system in Indiana found that public costs declined or deferred due to the presence of transit was over $16.3 million per year. The impact of lost employment to workers without vehicles was estimated to be between $137 and $224 million (6)
|
From page 6... ...
6only a high school diploma, the unemployment jumps to 23%. Unemployment is highest for high school dropouts at 32%.
|
From page 7... ...
7and absence of transit. Data for the model were obtained from on-board passenger surveys from seven representative transit agencies across Michigan, as well as transit data at the agency level.
|
From page 8... ...
8The scope of these studies was to review the impacts of transit and job access on low-wage earners and the effectiveness of transit programs focused on job access. Access to jobs was the most studied, while access to education was only considered in two studies.
|
From page 9... ...
9between access to education on unemployment and wages provides mixed supporting evidence as to the magnitude of the impact (4, 5, 14, 15, 7, 9–12)
|
From page 10... ...
10 derived. A regional-level analysis may determine a potential cost savings per visit or per patient with further research.
|
From page 11... ...
11 demographic, transit service, and regional differences may affect the applicability of these methods or generalizability of results. What factors influence cost savings?
|
From page 12... ...
12 regional, and state level. The model's design criteria focused on creating a dynamic and flexible tool through using scalable methods, using publicly available data, estimating a wide array of benefits, and accounting for uncertainty using risk analysis.
|
From page 13... ...
13 What are the limitations of these tools? The MDOT tool was designed to estimate the benefits of bus transit.
|
From page 14... ...
14 Table 1 Conceptual framework of indirect benefits. Transit Investment Indirect Impacts Measured Alternative Analysis Type Areas for Potential Double-counting Proposed Method Increases labor force participation Reduction in unemployment and welfare payments Economic Impact Analysis Reduction in program costs may occur, but unclear how it will affect government spending and budgets.
|
From page 15... ...
15 and these changes to government spending may have to be analyzed after-the-fact to accurately capture the flow of funds. For example, spending for other programs may be increased, taxes may be reduced, or funds may be used to pay down debt or increase reserves.
|
From page 16... ...
16 • Economic data -- jobs, income, employment status, employment centers, and participation in social assistance programs; and • Demographic data -- population by age group, household income, households without vehicles, families below the poverty line, and educational attainment. The data collected will enable agencies to evaluate baseline conditions for service areas.
|
From page 17... ...
17 Monitoring and Performance Evaluation Following project development, performance monitoring can measure the effectiveness of the service and can provide insight into service changes to maintain long-term indirect benefits to users. For each project, the transit service goals and the performance metrics to measure the indirect benefits should be established.
|
From page 18... ...
18 Suggested Data Sources The suggested data sources below were compiled from the literature review and other sources. Data are typically constrained by one or more of the following: • Geographic size -- socioeconomic datasets often only exist at the county level, • Publication lags -- data are often published annually and tend to lag a year or two depending upon the series, and • Data availability -- certain datasets are private or must be purchased.
|
From page 19... ...
19 Table 3 Supplementary list of available data sources for conceptual framework. Data Sources Series Name Data Type Use Geographic Detail U.S.
|
From page 20... ...
20 Figure 2 Flow diagram of indirect benefit calculations from ridership data. Transit Build Ridership Existing Riders without Improved Access to Jobs and Health Care New and Existing Riders with Improved Access to Jobs and Health Care New Riders not on Social Assistance Percent of Riders on Social Assistance New and Existing Riders on Social Assistance Percent of Riders Now with Access to Health Care Percent of Riders Now with Access to Jobs Riders on Social Assistance not Benefitting New Riders with Health Care Access New Riders with Job Access Cost Savings per New User with Health Care Access ($)
|
From page 21... ...
21 Decision Economics, 2010)
|
From page 22... ...
22 APPENDIX: ANNOTATED BIBLIOGRAPHY 1. Influence of Transit Accessibility to Jobs on the Employability of the Welfare Recipients: The Case of Broward County, Florida • Alam, B
|
From page 23... ...
23 Relevant Relationships: Transit → Access Land Use → Access Access → Unemployment, Wages Unemployment, Wages → Demand and Costs for Social Services Access → Schools/Education X Access → Health Care Utilization Schools/Education → Unemployment, Wages Health Care Utilization → Health Care Costs Model/Analysis Tool: No.
|
From page 24... ...
24 Objective: This study reviewed previous papers that examined the effect of education on earnings while comparing ordinary least squares and instrumental variable (IV) methods.
|
From page 25... ...
25 Objective: This study examines policy considerations related to the financing of transit and estimates the costs and benefits of fixed-route bus transit in Indiana. Methodology: Benefits are grouped into four categories: public costs deferred or reduced due to transit; private costs reduced due to transit; private-sector benefit of the system; and federal, state, and local tax revenues linked to transit.
|
From page 26... ...
26 Relevant Relationships: X Transit → Access Land Use → Access Access → Unemployment, Wages Unemployment, Wages → Demand and Costs for Social Services Access → Schools/Education Access → Health Care Utilization Schools/Education → Unemployment, Wages Health Care Utilization → Health Care Costs Model/Analysis Tool: No.
|
From page 27... ...
27 Key Findings: Approximately 82% of shuttle trips were taken for work purposes (17% work as origin, 66% work as destination)
|
From page 28... ...
28 11. The Socioeconomic Benefits of Transit in Wisconsin • HLB Decision Economics Inc.
|
From page 29... ...
29 Key Findings: Proposed transit expansions would overall increase access to jobs by 15%, ranging from 3% to 160% in different neighborhoods. In regards to low-skilled jobs, access is increased overall by 9%, ranging from 2% to 50%.
|
From page 30... ...
30 14. The Impact of Education on Unemployment Incidence and Re-employment Success: Evidence from the U.S.
|
From page 31... ...
31 Relevant Relationships: Transit → Access Land Use → Access Access → Unemployment, Wages Unemployment, Wages → Demand and Costs for Social Services Access → Schools/Education Access → Health Care Utilization X Schools/Education → Unemployment, Wages Health Care Utilization → Health Care Costs Model/Analysis Tool: No.
|
From page 32... ...
32 Key Findings: Multiple variables were considered in this analysis, including automobile ownership, access to transit, transit service frequency, and employment accessibility. Of these transit and employment variables, none were consistently statistically significant.
|
From page 33... ...
33 19. Costs and Benefits of Employment Transportation for Low-Wage Workers: An Assessment of Job Access Public Transportation Services • Thakuriah, P., J
|
From page 34... ...
34 non-users, due to changes in income taxes generated by the users, alternative use of taxpayer funds on welfare and other public assistance payments, as well as the external costs of nontransit modes of transportation that might have been previously used. Societal benefits range from $3.10 to $3.50 per dollar invested depending upon how leisure time is valued.
|
From page 35... ...
35 22. Florida Transportation Disadvantaged Programs: Return on Investment Study • Cronin, J
|
From page 36... ...
36 Key Findings: The Study proposed eight Tier 1 and Tier 2 priority corridors for consideration. To advance BRT, the planning process must include stakeholders and must identify the benefits to businesses and residents.
|
From page 37... ...
ISBN 978-0-309-30847-2 9 780309 308472 9 0 0 0 0 Transportation Research Board 500 Fifth Street, NW Washington, DC 20001 These digests are issued in order to increase awareness of research results emanating from projects in the Cooperative Research Programs (CRP)
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.