SELECTED DATA AND TOOLS FOR UNDERSTANDING ECONOMIC IMPACTS OF TRANSPORTATION INVESTMENTS

Transcription

1 SELECTED DATA AND TOOLS FOR UNDERSTANDING ECONOMIC IMPACTS OF TRANSPORTATION INVESTMENTS SCORECARD GUIDE Selected Data and Tls fr Ecnmic Impact Analysis (The Screcard) is a decisin supprt matrix that summarizes measures f ecnmic impact and the data and tls available t assess these impacts, whether at the prject r system r area level, as part f the state transprtatin planning prcess. The gals f this effrt are t assist transprtatin analysts in assessing available tls and data, as well as t demnstrate the infrmatin required t develp cmprehensive ecnmic impact analyses fr transprtatin investments. Cntext Histrically, the ptential ecnmic develpment impacts f transprtatin investments have nt been a primary decisin factr in which investments get made by states. Measuring impact has been difficult, tls and data have nt been available, and ther factrs have taken pririty. Yet, cmpelling reasns exist fr ecnmic develpment t be cnsidered bradly and mre explicitly in state transprtatin planning: 1. The fragile state f the ecnmy thrughut the cuntry requires a clser fcus n thse effrts prviding the greatest pprtunity t grw lcal and state ecnmies. Given the impact f the recessin and the resultant shrtage f traditinal revenues that can be applied t critical transprtatin needs, the crllary t this is leave n ptential benefit behind. 2. Transprtatin systems and services are likely determinants in the success f many ecnmic develpment initiatives. 3. Capturing ecnmic develpment benefits requires that relevant prjects are funded as part f the statewide transprtatin imprvement prgram. Transprtatin prjects generate different types and levels f ecnmic benefits and these impacts need t be well understd in the planning prcess t prduce gd investment decisins. 4. Inadequate analysis may lead t investments that fail t generate net ecnmic return r may nt prduce ecnmic gains and may encurage even negative results fr a given cmmunity r regin. SCORECARD GUIDE 1

2 The rle f ecnmic analysis in transprtatin planning at the state level is changing. Mre states are engaged in ecnmic analysis and sme states are cnsidering ecnmic cmpetitiveness and benefit/cst impacts amng the factrs in ranking, re-priritizing and/r awarding resurces fr transprtatin investments. This Screcard aims t help that prcess and t supprt the adptin f such effrts in mre places. Scpe This Screcard in matrix frm is the result f research that lked at: 1. The current practice f ecnmic analysis in state transprtatin planning thrugh a literature search and interviews with fficials in nine state DOTs; 2. The types f data used t supprt ecnmic develpment analyses within state transprtatin planning and prject priritizatin; 3. The key measures, tls and techniques used in state transprtatin planning that culd affect effrts t supprt ecnmic develpment; and 4. The gaps in available data, tls and techniques t determine specific ecnmic effects and verall net ecnmic benefits. The Screcard is accmpanied by a set f backgrund materials including a prject reprt and anntated bibligraphy that can be used t learn abut the items in the matrix and their applicatin in mre detail. The Screcard This Screcard and related materials are designed t help guide transprtatin strategies and chices tward mre effective ecnmic develpment planning. In particular, the Screcard: 1. Prvides a sense f the steps invlved in acquiring the necessary infrmatin if a statewide agency wants t include ecnmic develpment mre explicitly in planning and decisinmaking; 2. Describes a representative sample f available data and tls based n an examinatin f the current state-f-practice; and 3. Identifies gaps in data and practices and indicates emerging practices t address a brader range f indicatrs. Organizatin f the Screcard The matrix is rganized with a vertical axis that cntains tls and data surces and a hrizntal axis that cntains measures f ecnmic impact fr transprtatin investments. These terms are defined further in the next sectins. Each cell f the matrix indicates whether a given tl in the rw can be used t estimate sme aspect f ecnmic impact in the crrespnding clumn. The table belw shws hw the matrix wrks. SCORECARD GUIDE 2

3 Tl r Data Surce Tl r Data Surce Tl r Data Surce Ecnmic Impact Measure Rating = 2 This tl can be used fr this measure f ecnmic impact Rating = 1 This tl is limited in its use fr this measure f ecnmic impact Blank cell This data surce des nt apply t this measure f ecnmic impact In a sense, each cell in the matrix can be read as the answer t the questin, Des Tl r Data Surce Y measure a transprtatin investment s impact in terms f Indicatr X. Fr example, Des the Data Surce Parcel Develpment Data/Prperty Taxes measure a transprtatin investment s impact n the Indicatr Travel Time Benefits - Passenger? The answer is n, s the cell is blank. Des the Data Surce Parcel Develpment Data/Prperty Taxes measure a transprtatin investment s impact n the Value Capture/Creatin & Prperty Values? The answer is yes, s the cell will either have a 1, which indicates that the data surce prvides sme insight, r a 2 which indicates that the data surce addresses the issue t a significant degree. Gaps exist between the available resurces and what is needed t fully analyze the ecnmic impacts f transprtatin prjects. Shwing these gaps is meant t indicate where new tls are needed r the tls need t imprve as ecnmic analysis becmes a mre cmmn practice in the transprtatin field. Generally, a cmbinatin f tls is still needed t prvide a cmprehensive view f benefits. At the same time, care shuld be taken nt t duble cunt benefits, such as travel time savings, which is used in calculating several impacts. Vertical Axis: Data and Tls The data and tls used in transprtatin impact analysis are divided int six categries shwn n the vertical axis. These items prgress frm basic data at the tp thrugh increasingly mre cmplex tls tward the bttm, with a final categry at the base that incrprates libraries f experienced-based evaluatins and tls. Within each categry are several examples f the tls available. These examples are nt a cmprehensive list, but rather a representative sample f the range f resurces available fr the purpse f assessing their capacity. The categries are described as fllws: Primary Data: Data and infrmatin withut interpretatin applied t them. Purpse-Fcused: Data and mdeled results that fcus n specific transprtatin questins. Traffic Engineering and Perfrmance Based: Mdels and capacity manual tls in use in transprtatin agencies are included in these appraches. Travel Demand: Mdels and tls that prject r measure travel and its causes and effects. Reginal Ecnmic Activity: Analytical tls used t predict the reginal ecnmic impacts f transprtatin investments including changes in: Emplyment, industry activity, and ecnmic demand; SCORECARD GUIDE 3

4 Fiscal impacts such as prperty values; Husehld and business csts and affrdability; and Livability impacts such as envirnment and health, land cnsumptin, and walkability. Cmmunity f Practice: Analytical tls that derive frm real-wrld experience and implementatin, such as cmpilatins f case studies f cmpleted prjects r a bdy f research r data n a particular area f inquiry. Hrizntal Axis: Ptential Ecnmic Impacts Five key types f measures and indicatrs f ecnmic impacts are used in the hrizntal axis. The indicatrs add cmprehensiveness t an analysis as ne ges frm left t right in the table. The categries and related indicatrs are described as fllws: Gegraphy: Level f detail f area cvered by tl r data. Finer grain gegraphies allw ne t uncver ecnmic impacts that might get washed ut in a larger cunty- r state-level analysis. Fr example, if a transit stp enables 300 new units f husing in a census track it will have a majr impact n the neighbrhd, but that impact may nt be large enugh t be ntable in cunty-wide building data. Cunty r Higher: Disaggregates data t the cunty, state, r natinal level. Lcal- Census Place: Disaggregates data t smaller than the cunty level t incrprated areas including cities, twns, and villages. GIS - Blck, Parcel: Can be used as part f a fine grained gegraphic infrmatin system, r disaggregates data t a sub-city level. System Perfrmance: Measures f efficiency and effectiveness f a prject s impact n the transprtatin netwrk. System perfrmance indicatrs are first-rder measures f ecnmic impact. These basic indicatrs answer such questins as: Is an investment ging t make the transprtatin system mre r less expensive t maintain and perate? Is an investment ging t help the system d its jb better? System Perfrmance and Cnditin: Efficiency, effectiveness f transprtatin netwrk r state f gd repair. The transprtatin system as an ecnmic asset has a higher value if it is perfrming well. Preventing future maintenance expenditures als creates real savings. Netwrk Utility/Cnnectivity: The transprtatin netwrk s usefulness due t cnnectivity and ther attributes. Prviding a high degree f utility and cnnectivity will supprt ecnmic develpment and allw the lcal ecnmy t rely n the transprtatin system. Operatinal Effects (Financial): System s peratinal csts. Reducing peratinal csts f the system has lng-term budgetary benefits and frees up resurces fr ther public gds. SCORECARD GUIDE 4

5 Benefit-Cst and Cst Effectiveness: Measures f whether a transprtatin prject is ecnmical in terms f the value received as cmpared t utlay r impact. These indicatrs are the mst cmmn that transprtatin decisin-makers use t lk at return n investment t the users and the cmmunity affected. Demnstrating benefits such as reduced travel time r husehld expenses speaks t primary real-wrld cncerns f cnstituents and can help garner public supprt fr transprtatin investments. Travel Time Benefits Passenger: Time spent traveling by drivers and passengers. Travel time is a well-dcumented ecnmic impact f transprtatin and is basic part f mst ecnmic analysis. But as the Screcard shws it is nt the nly way t measure ecnmic benefit. Travel Time Benefits Freight: Carg s time spent in transprt. Carg travel time is ften lked at separately frm passenger travel, since the value f time fr each is quite different. Husehld Csts: Persnal expenses. Transprtatin prjects that reduce husehld csts supprt families and can allw them t channel their funds t mre prductive uses. Business Csts: Business expenses. If a transprtatin prject can help reduce the cst f ding business in an area lcal emplyers will have mre resurces t invest, grw, and create jbs. Safety (Accidents, Injuries): Number r rate f accident and injuries. Transprtatin safety has played a rle in ecnmic analysis fr decades. The ecnmic benefit that reducing accidents and injuries creates is well dcumented. Equity Impacts: Ecnmic justice r relative financial well-being. Imprving equity in a regin is imprtant frm a fairness perspective. But it can als help ensure the health f the ecnmy by creating mre pprtunities fr success. Ecnmic equity has been shwn t cntribute t higher rates f ecnmic grwth. Emplyment Accessibility: The degree t which jbs are accessible frm varius mdes f transprtatin, ften within a set time such as 45 minutes. Since jbs are ne f the crnerstnes f the lcal ecnmy, making them mre accessible supprts lcal ecnmic develpment. Reginal Ecnmic Develpment: Measures f transprtatin prject s impact n the ecnmy f the surrunding area. Reginal ecnmic develpment indicatrs get t the heart f ecnmic impact analysis. These measures lk beynd cst savings t value creatin in the regin, such as thrugh new jbs, increased prperty values, and cleaner air. This kind f value creatin can differentiate a prject that might therwise scre similarly t thers in terms f system perfrmance r ther mre traditinal measures. Mrever, demnstrating ecnmic develpment ptential can help make the argument in a cmmunity fr a transprtatin investment. Fiscal Impact: Effect n revenues f transprtatin agency r f area served by the transprtatin investment, as well as changes in such impacts as tax receipts. Als includes lss f residents r businesses due t displacement and the impact n a SCORECARD GUIDE 5

6 cmmunity nt receiving a transprtatin imprvement whse residences r businesses relcate t the new site. Analyzing the impact f transprtatin investments n public receipts ver time helps ensure full accunting f tangible benefits and that the prject cntributes t sustainability f the area. Shrt Term Emplyment Impacts: Jbs created in the cnstructin phase r ther temprary perid. Shrt term jb creatin can be the largest ecnmic impact f sme transprtatin prjects. Putting peple t wrk, even if fr just a few mnths r years, can aid lcal ecnmic develpment. Emplyment Increases r Shifts: Jbs in the regin ver the lnger term, such as by an emplyer expanding in the regin. Measuring emplyment shifts will shw whether jb creatin is really new jbs, and thus net ecnmic gain, r just jbs cming frm elsewhere. Shifts may be beneficial if the new lcatin f jbs will help transprtatin efficiency, reduce cmmutes r catalyze ther develpment. Shifts in ther ecnmic activity can ccur in this same manner. Induced Impacts & Secnd Order Effects: Jbs created as a result f additinal spending by peple r firms that receive direct ecnmic benefits frm a prject. Secnd rder effects can be ne f the mre cmplicated ecnmic impacts t measure, but can be significant. Fr every new jb created, thse emplyees g n t purchase gds and services in their neighbrhds, making the impact f that ne jb n the cmmunity much greater than its direct effects alne. The ptential issue f duble cunting needs t be recgnized. Value Capture/Creatin & Prperty Values: Market price f prperty in the regin/place r ther measure f value capture. Transprtatin has real impacts n prperty values accessibility t jb centers can increase hme prices, while traffic nise can have a negative effect. If a transprtatin prject has the ptential t make lcal prperty values increase r decrease that shuld be dcumented as part f ecnmic impact. Livability: Measures f quality f life impacts f transprtatin prject. Livability measures g beynd standard ecnmic develpment assessment t lk at sustainability and quality f life. Sustainability has value n its wn, and an investment that imprves the attractiveness f a regin fr wrkers and businesses can make that regin mre cmpetitive. Livability imprvements can generate feedback lps f benefits, such as when healthier, greener neighbrhds prmte walkability, which then creates a culture f walking t wrk r shp in the area and reduces cngestin and air pllutin in areas beynd the initial investment. Envirnmental Benefits: Quality f air, water, flra and fauna. The ecnmic cst f air, water, and land pllutin has been well dcumented. T the extent that an investment reduces envirnmental impacts it creates lasting value fr a regin s ecnmy. Land Cnsumptin/ Resurce Use Intensity: Quantity and frm f land and resurce cnsumptin. Investments that prmte cmpact develpment can help reduce transprtatin demand and enable travelers t have alternative mde ptins. Land cnservatin can als help preserve ecsystems, prtect bidiversity, and leave space SCORECARD GUIDE 6

7 fr ther land uses like lcal agriculture. Investments that are less resurce intense will have lwer lifecycle impacts and can supprt sustainability thrughut the supply chain. Health Benefits: Inducing r preventing well-being and disease. A transprtatin investment that imprves public health, such as by lwering besity rates, creates real ecnmic value fr the cmmunity in a way that has nt histrically been accunted fr. Including a measure f this impact can change the relative ecnmic perfrmance f prjects. Walkability and Pedestrian Friendliness: Supprtiveness and safety fr walking. Walkability crsslinks t ther benefits including health and husehld csts. Walkability can als indicate a general level f quality f life that is attractive t business investments. SCORECARD GUIDE 7