Annotated Bibliography - SSTI

Annotated Bibliography for
Economic Effects of Public Investment in
Transportation
The literature on transportation and economic development is extensive, with many new
entries in
the last 5 years. Despite the interest and the improvement in analytical tools
and
measures, the interviews and the literaturee reveal a gap between
goal setting and the use of
tools and
performance measures to predict and to evaluate the
impacts once a project is
completed. The intent of the Annotated Bibliography iss to assist the practitioner in finding the
information needed to adopt sound economic analysis practices.
The team
reviewed more than 100 reports, in addition to numerous documents internal to
state and
some MPO
programs. The Annotated Bibliography focuses on key reports of the
last
decade exploring the relationship of transportation
and economic effects and providing
information on the full range of economic measures, techniques, and tools.
The entries are organized by author’s last name and include key words indicating the modes of
transportation included, types of economic analysis considered, and
related topics such as goals
setting. The Annotated Bibliography is provided in addition to a more extensive bibliography
that accompanies the report, which includes other general references, as well as a number of
reports on the history of performance measurement in transportation in general.
Annotated Bibliography
Page 1

Forecasting Indirect Land Use Effects of Transportation Projects,
Title
NCHRP Project 25‐25, Task 22
Authors Uri Avins, Robert Cervero, Terry Moore, Christopher Dorney,
American Association of State Highway and Transportation Officials (AASHTO) and
Sponsor
the Transportation Research Board
Date 2007
Pages 128
Category Economic Development, Modes: Highway
Note
Online http://apps.trb.org/cmsfeed/TRBNetProjectDisplay.asp?ProjectID=1294
Summary This report was prepared at the request of AASHTO to provide states with specific
guidance on how to forecast indirect land use effects of transportation projects after
a number of states had environmental impact statements challenged for alleged
inadequate treatment of the issue. The report serves as a detailed guidebook for
projecting such effects, which AASHTO determined was needed despite numerous
guidance documents by states and research organizations. The authors found that
the practice of predicting these effects was “a largely ad‐hoc field lacking focused
guidance and research‐based understanding of land use response to transportation
improvements”. Moreover where guidance was available, practitioners interviewed
acknowledged skipping steps or substituting other methods.
The authors point out that failure to account for this induced demand is likely to
overstate travel time savings attributed to a project, which is an important part of
the transportation and economic benefits. They suggest this situation adds to public
skepticism about the project and its benefits and is the impetus for legal challenges.
The authors also indicate skepticism about the value of “packaged models” in use by
states and MPOs in considering induced travel demand and the related land use
effects.
The guidebook provides factors to consider in determining if indirect or induced land
use effects may be promoted by the subject project. Detailed guidance is provided
on how to conduct the analysis when that is determined necessary through
descriptions of six types of analysis: planners’ judgment; collaborative judgment;
elasticities and the potential for induced traffic; allocation models that allow land
use and population forecasts to be allocated to smaller geographies; four‐step Travel
Demand models with heuristic land use allocations; and Integrated Land Use and
Transportation models. Of these the first three are considered foundational and are
used in combination with one of the latter three for more rigor when needed due to
the project’s complexity or size.
Annotated Bibliography Page 2

Title Transit‐Oriented Development (TOD) and Employment
Authors Dena Belzer, Sujata Srivastava, Jeff Wood, and Ellen Greenberg
Sponsor Center for Transit‐Orientated Development
Date May, 2011
Pages 28
Category Transit‐Oriented Development (TOD), Modes: Transit, Economic Measures
Note
http://www.reconnectingamerica.org/assets/Uploads/TODandEmploymentFINALMay2
Online
011.pdf
Summary The report provides context for developing measures for transit's ability to both serve
and attract development by focusing on concentrations of jobs, recognizing that 59% of
transit riders are commuters. One measure cited is "workers within 1/2 mile of transit
service". The authors look at transit and job clusters in three regions: Twin Cities,
Atlanta, and Phoenix. Data from the Bureau of the Census' Longitudinal Employer‐
Household Dynamics (LEHD) and Google Earth, is used to map employment at the
Census block level.
Job clusters are grouped based on geographical proximity and connectivity and a
comparison is made with current and proposed transit lines. This methodology takes an
important step in assessing transit and highway accessibility to jobs and provides a tool
for transit planners in developing systems and services that better connect to job
centers.
Annotated Bibliography Page 3

Title Performance Driven: A New Vision for U.S. Transportation Policy
Authors Bi‐Partisan Policy Center
Sponsor National Transportation Policy Project
Date June, 2009
Pages 136
Category Modes: All, Economic Performance Measures
Note
Online
Summary
http://www.bipartisanpolicy.org/sites/default/files/ntpp_performance%20driven_june
%209%2009_0.pdf
The report proposes restructuring the current surface transportation program into a
performance based program. Five national goals are proposed with performance
measures: economic growth, metropolitan accessibility, national connectivity, energy
security and environmental protection, and safety.
The authors take a dim view of the failure to require optimum returns on public
investments in federal funding programs, and propose to use access as the key proxy
for economic growth. The resulting four measures recommended include: access to jobs
and labor; access to non‐work activities; network utility; and corridor congestion.
Annotated Bibliography Page 4

Title Transportation and the Texas Economy: Some Interim Results
Authors Dock Burke, David Luskin, Duane Rosa, and Tina Collier
Sponsor Texas Department of Transportation
Date June, 2005
Pages 30
Category Economic Performance Measures, Models, Modes: All
Note
Online http://tti.tamu.edu/documents/0‐4871‐1.pdf
Summary Preliminary report for a project assessing the possibilities for using economic indicators
in transportation planning in Texas. Includes results of a survey of other States’
economic planning processes that provides useful guidance on methods and models
used and sources of data. The survey resulted in information on recent practices in 16
other states showing a wide range of techniques and models used to assess economic
benefits and costs.
Some examples: 1) the state of Vermont used IMPLAN and an input‐output model to
assess the economic impact of public use airports. The state used Dun and Bradstreet
business records for job counts and the Bureau of Economic Analysis (BEA) wage data
and sales per employee to estimate payroll and business sales; 2) the Maine DOT used
the REMI input‐output model to help decision makers understand the further
investment in the state’s east‐west highways; and 3) the Oregon DOT, which has
developed its own integrated transportation, economic and land use model.
Annotated Bibliography Page 5

Title A Guidebook for Performance‐Based Transportation Planning
Authors Cambridge Systematics, Inc.
Sponsor Transportation Research Board, NCHRP 446
Date 2000
Pages 116
Category Economic Performance Measures, Decision Making, Modes: All
Note To Index: http://pubsindex.trb.org/view.aspx?id=675635
Online http://onlinepubs.trb.org/onlinepubs/nchrp/nchrp_rpt_446.pdf
Summary This report provides a framework for performance‐based, multi‐modal planning and
describes the evaluation and monitoring of transportation performance in various
stages of the planning process. NCHRP 446 provides useful information on transport
and freight data collection, such as manual goods movement surveillance and manual
traffic and vehicle surveillance and different type of techniques and models in use at
the time of the study. It addresses the need for economic measures, but this is not the
focus of the guidebook.
The report identifies best practices by planning functions in terms of congestion
management, intermodal access, truck route designation and maintenance, safety
mitigation and economic development. It contains a wealth of information including 9
case studies of performance measurement and application in state Departments of
Transportation and MPOs throughout the United States on performance based
measures within its appendix. One case study conducted in Portland, Oregon concluded
that implementation of performance based approaches will increase the time to
evaluate and reach decisions, and stressed the importance of stakeholder involvement
in order to measure the performance.
Annotated Bibliography Page 6

Title
Authors
Performance‐Based Planning: A State‐of‐the‐Practice Summary
Cambridge Systematics Inc., et al.
Sponsor
National Cooperative Highway Research Program, National Forum on Performance‐
Based Planning, September 13‐15, 2010
Date September, 2010
Pages 47
Category
Note
Online
Summary
Decision Making, Performance Measures, Targets, Modes: Transit and Highways
http://planning.transportation.org/Documents/NationalForum/DR1_National%C2%A0F
orum%C2%A0State‐of‐the‐Practice%C2%A0Report.pdf
The report provides a summary of current practices of state DOTs, MPOs, and transit
agencies in performance‐based planning. Economic performance is discussed, and the
paper concludes that while economic goals are commonly adopted by these agencies,
only a relatively few have adopted related performance metrics.
The report also provides a summary of performance based planning internationally.
Two of the 16 findings from international examination relate to economic performance
and are recommended for implementation in the United States include "improvements
in the use of benefit‐cost analysis and risk management techniques to establish value
for money" and the "conversion of long‐term deferred maintenance needs into a longterm
future liability calculation".
Annotated Bibliography Page 7

Title Performance Measurement Framework for Highway Capacity Decision Making
Authors Cambridge Systematics, Inc., et al.
Sponsor Transportation Research Board (TRB), SHRP 2 Report S2‐C02‐RR
Date 2009
Pages 126
Category
Note
Online
Summary
Benefit Cost Analysis (BCA), Economic Impact Assessment (EIA), Economic Performance
Measures, Modes: Motor Vehicles
Economic measures are described, but further consideration was deferred to a separate
study.
http://onlinepubs.trb.org/onlinepubs/shrp2/shrp2_S2‐C02‐RR.pdf
This report is part of the TRB Sharp2 research program into highway capacity. The
authors acknowledge that considerable analysis and understanding has been achieved
"of operations and maintenance ‐ related measures, such as pavement quality, bridge
deficiency, and safety; and capacity related measures such as volume‐to‐capacity ratio,
or level‐of‐service rating." The focus of the research is on "non‐traditional"
performance areas, which are described as less developed. These include
transportation, environment, economics, community, and cost. Seventeen performance
factors are described for these 5 areas, with two being described for economics:
economic impact and economic development.
A series of performance measures detail the other 4 factors, but the economic factors
are being developed as part of another Sharp 2 study: the C03 project, Interactions
between Transportation Capacity, Economic Systems, and Land Use merged with
Integrating Economic Considerations in Project Development. However, because many
measures could be used to assess more than one factor, measures are described for
other factors relating to accessibility and cost and also are relevant to economics.
Annotated Bibliography Page 8

Title Chicago Southland’s Green Time Zone
Authors Center for Neighborhood Technology
Sponsor Green TIME Zone: Chicago Southland
Date 2010
Pages 24
Category Land Use Efficiency, Household Savings, Modes: Truck and transit
Note
Online http://www.cnt.org/repository/GTZ.pdf
Summary This report describes an ambitious redevelopment plan for south suburban areas in
Cook County, Illinois that uses existing railroad and transit infrastructure and
manufacturing to create jobs and desirable neighborhoods, and to achieve
environmental improvement. These ideals are built on three mechanisms linked to
sustainable redevelopment: transit orientated development, cargo‐orientated
development, and green manufacturing.
The report provides insight on the value of location efficiency from the transportation
assets and the potential of redevelopment of underutilized land, international logistics
access, and the green supply chain. Progress in the implementation of the plan will be
tracked with a number of measures including: household transportation savings,
reductions in vehicle miles traveled for trucks, jobs per acre, increased household
income, and metric tons of CO2 emissions eliminated.
Annotated Bibliography Page 9

Title
Authors
Sponsor
History and Application of Least Cost Planning for Transportation from the Mid‐1990s
CH2MHill and HDR
Oregon DOT
Date July, 2010
Pages 136
Category
Note
Online
Summary
Least Cost Planning (LCP), BCA, Modes: All
See ODOT website for numerous articles on LCP and related analyses:
http://www.oregon.gov/ODOT/TD/TP/LCP.shtml
http://www.oregon.gov/ODOT/TD/TP/docs/lcp/history.pdf
The report provides a history of Least Cost Planning (LCP) and related analyses in
Oregon, as well as nationally and internationally. The use of LCP is described in 4 case
studies, including detailed descriptions of technical approaches. For example, the report
describes the application of LCP principles and methodology for the Puget Sound
Region's 2040 Long Range Transportation Plan. The LCP analysis allowed decision
makers to better understand trade‐offs between 7 alternative scenarios by identifying
the net value associated with each scenario. This net value quantifies and monetizes the
soft and hard costs associated with each scenario emphasizing different modes and
policies.
The report provides extensive bibliography in format similar to this document and
establishes 7 principles for transportation planning to be consistent with LCP.
1) The evaluation framework rolls up multiple goals.
2) The range of Oregon‐specific transportation policy goals and objectives can be
addressed.
3) A broad range of possible multi‐modal capacity, demand‐management, land‐use,
maintenance, and other planning options can be considered.
4) Members of the community and decision makers are engaged in the planning and
decision‐making process.
5) The approach facilitates the adoption of a meaningful, relevant and operationally
useful basis for choice.
6) The methodology can be applied at the project‐specific level, and the collective
(multi‐project) level.
7) The approach has been used for transportation planning.
Annotated Bibliography Page 10

Title The Cost of Congestion to the Economy of the Portland Region
Authors Economic Development Research Group (EDR Group)
Sponsor Portland Business Alliance, Metro and Port of Portland
Date December, 2005
Pages 72
Category BCA, Economic Competitiveness, Modes: Motor Vehicles
Note
Online
Summary
http://www.portofportland.com/PDFPOP/Trade_Trans_Studies_CoCReport1128Final.p
df
This report examines current and future threats to economic vitality in the Portland
area due to traffic congestion. It evaluates how transportation infrastructure affects the
cost and ability of businesses to compete and the competitiveness for the area due to
access to industry. Two case studies for regions similar to Portland, demonstrate that
many urban economies are dependent upon transportation in order to achieve
economic development.
The authors cite three types of economic impact and related measures: "(1) Traveler
Benefit – This measure puts a dollar value on benefits to travelers. It includes savings in
business costs, household expenses and personal time savings. This is the traditional
measure of transportation system efficiency.
(2) Benefit to the Economy – This measure counts growth of the regional economy due
to changes in household living costs, business operating cost, productivity and
competitiveness. However, it does not count the value of personal time, since that does
not directly affect the flow of dollars.
(3) Society Benefit – This measure combines the income generating value of benefits to
the economy together with the value of non‐money traveler benefits such as personal
time savings. It avoids double counting to provide the most comprehensive measure of
overall impact. "
The report identifies three approaches to congestion: increase capacity, improve
management, and impose pricing. The authors also stress that a focus on freight and
implementing varying toll rates reflecting vehicle type and time of day can prevent
congestion as well.
Annotated Bibliography Page 11

Title Economic Effects of Traffic Calming on Urban Small Businesses
Authors Emily Drennen
Sponsor San Francisco State University
Date December, 2003
Pages 90
Category Economic Development, Modes: Non‐Motor Vehicle
Note
Online http://www.sfbike.org/download/bikeplan/bikelanes.pdf
Summary Report on survey of small businesses in San Francisco after a traffic calming project. The
report cites other research showing a correlation between traffic calming (including
pedestrian and bike improvements) and improved economic activity and increased
property values. The report describes the survey results in more mixed terms with many
business owners being positive about the benefits of the project for their business and
added convenience for customers and employees, but less than half those owners
surveyed credited the project with increased economic activity or property values. The
authors cite a number of external factors as affecting the results of the project including
a downturn in the national and local economic conditions, effects of 9‐11‐2001, and the
limited scope of the subject project as compared to more comprehensive projects that
were the subject of other cited research.
Annotated Bibliography Page 12

Title Highway Induced Development: Research Results for Metropolitan Area
Authors Reid Ewing
Sponsor Transportation Research Board, Transportation Research Record No. 2067
Date 2009
Pages
Category Land Use, Models
Note May require purchase from TRB
Online
Summary
http://trb.metapress.com/content/lg368360xr65w85t/?p=d903338aac394f36b16b18e5
46195bd9&pi=11
This article on highway induced development summarizes some 20 highway impact
studies over the last 30 years including locations throughout the country. Many of
these studies show that major investments are more likely to move development
around the region than to stimulate new economic activity.
The author concludes that much of highway development in the post‐Interstate era, is
close to a zero‐sum game as far as economic benefit for a particular region is
concerned.
Annotated Bibliography Page 13

Title
Traffic Generated by Mixed‐Use Developments—Six‐Region Study Using Consistent Built
Environmental Measures
Authors
Reid Ewing, Michael Greenwald, Ming Zhang, Jerry Walters, Mark Feldman, Robert
Cervero, Lawrence Frank, and John Thomas
Sponsor Reconnecting America
Date December, 2009
Pages 21
Category Development, Modes: All
Note New method for calculating traffic from mixed use development.
Online
Summary
http://www.reconnectingamerica.org/assets/Uploads/trafficmixedusedevelopments20
09.pdf
This study develops a new methodology for predicting traffic impacts in mixed used
developments as contrasted with the standard method recommended by ITE. The ITE
method is based on experience at 6 multiuse sites in Florida. The researchers chose
mixed use developments (MXD) in 6 regions that had high quality data available that
met these two criteria:
• regional household travel surveys with XY coordinates for trip ends, so we could
distinguish trips to, from, and within small MXDs; and
• land use databases at the parcel level with detailed land use classifications, so landuse
intensity and mix could be observed down to the parcel level.
The authors found only 13 regions that met the first criterion and only six regions:
Houston, Boston, Atlanta, Portland, Sacramento, and Seattle that met both. These six
provided for a research base of 239 MXDs. The internal capture, non‐auto rate for all
trips averaged 29%, with the external walk and transit shares varying considerably
among MXDs and the cities. Boston had the highest average external (from
development) walk rate at 13.2%, with Seattle having the highest external transit rate
at 8.7%, as shown below:
Walk Transit
Atlanta 3.2% 2.1%
Boston 13.2% 3.7%
Houston 2.7% 5.2%
Portland 7.1% 3.3%
Sacramento 1.8% 0.2%
Seattle 4.7% 8.7%
External auto trip distances among the regions also varied substantially, with the
average distances among all of 7.5 miles. The range was from 4.8 miles for MXDs in
Boston to 13.6 miles for MXDs in Houston.
The analysis shows that mixed‐use developments reduce traffic impacts compared to
conventional development – 3 out of 10 trips produced or attracted to an MXD pose no
burden to the street/roadway system. They also generate walking and transit trips, and
shorten vehicle trips.
Annotated Bibliography Page 14

Title Economic Analysis Primer
Authors Federal Highway Administration (FHWA)
Sponsor U.S. Department of Transportation
Date August, 2003
Pages 36
Category BCA, EIA, Life‐cycle Cost, Risk Analysis
Note
Online
Summary
For more information concerning economic analysis and highways see:
http://www.fhwa.dot.gov/infrastructure/asstmgmt/econlinks.cfm
http://www.fhwa.dot.gov/infrastructure/asstmgmt/primer.pdf
Defines FHWA's role in project planning and promotion of economic analysis for
highway projects. Provides a tutorial on the elements of economic analysis, such as
measures of inflation and considering discount rates in highway construction. Identifies
useful applications of life‐cycle cost analyses, benefit cost analyses and economic
impact analyses in highway project planning.
Annotated Bibliography Page 15

Title
Authors
Guide for Assessing Social and Economic Effects
David Forkenbrock and Glen Weisbrod
Sponsor Transportation Research Board (TRB) ‐ National Research Council, NCHRP 456
Date 2001
Pages 151
Category Economic Performance Measures, Modes: All
Note
Online
Summary
http://www.edrgroup.com/library/multi‐modal/guidebook‐for‐assessing‐social‐aeconomic‐effects‐of‐transportation‐projects.html
This report serves as a comprehensive manual for analyzing the benefits of a
transportation project, including method, resources, and references for each area of
concern. Effects noted include changes in travel time, vehicle operating costs, economic
development, and property values. Section 8 of this report defines the measures of
economic development in terms of business startup, expansion, attraction, and
retention. It identifies five factors that are effects of economic development from
transportation projects: business travel costs, business market research, personal travel
costs, job access, and quality of life.
The authors categorize the effects transportation projects have on property values and
land use as changes in accessibility, noise, visual quality, community cohesion, and
business productivity. The steps of a property value analysis are outlined, explaining to
first identify the associated direct effects, followed by the definition of affected areas,
and finally to assess effects based on the relationship of relevant factors to property
value.
Annotated Bibliography Page 16

Title Statewide Travel Demand Modeling ‐ A Peer Exchange,
Authors Gregory T. Giaimo and Robert Schiffer
Transportation Research Board and Statewide Multimodal Transportation Planning
Sponsor Committee and The Federal Highway Administration, Transportation Research Circular
E‐CO75
Date August, 2005
Pages 212
Category Statewide travel demand models
Note
Online http://onlinepubs.trb.org/onlinepubs/circulars/ec075.pdf
Summary The report was developed from the national Statewide Travel Demand Modeling Peer
Exchange in Longboat Key, Florida in September of 2004. It compares the examination
and use of statewide travel demand models of 14 state DOTs and nine affiliated
institutions. The report alphabetically covers state DOTs in seven topic areas: Data
requirements, Maintenance/use, Implementation, Scale/level of detail,
Statewide/urban model integration, Freight/commercial vehicle modeling, Longdistance/recreational/tourism
travel. The Committee concluded that research on rural
trip making and on the development of a national model were the top priorities. The
economic impacts of transportation was ranked as a low priority.
Annotated Bibliography Page 17

Title Growing the Economy From the Bottom Up
Authors Bruce Katz
Sponsor Brookings Institution
Date December, 2011
Pages 1
Category Economic Development
Note
Online
Summary
http://www.brookings.edu/opinions/2011/1213_new_york_economy_katz.aspx
This article makes note that New York city is considering making up to $100 million
investment in infrastructure and land to support a major applied sciences and
engineering campus. The expectation is that there will be 30,000 permanent and
construction jobs generated and hundreds of start‐up companies as a result of the
research institution. The primary benefits will be from the attraction the campus will
have for these new enterprises.
Annotated Bibliography Page 18

Title
Authors
Wider Economic Impacts of Transport Investments in New Zealand
Duncan Kernohan and Lars Rognlien
Sponsor New Zealand Transport Agency, Research Report 448
Date September, 2011
Pages 128
Category
Note
Online
Summary
BCA, Models, Modes: All, Agglomeration Benefits
http://www.nzta.govt.nz/resources/research/reports/448/docs/448.pdf
This report lays out a systematic approach for the New Zealand Transport Agency to
adopt when assessing the wider economic impacts of transportation projects. It
includes a comprehensive literature review to provide an overview of the theory of
wider economic impacts and develops the methods required to assess impacts. The
report defines and derives values for impacts related to imperfect competition benefits,
increased competition benefits, labor supply benefits and job relocation benefits within
New Zealand. The report projects the wider economic impacts for two modeled years
across a 30 year appraisal period, identifying agglomeration impacts as the largest
component for the project with a total of $72 million impact in net present value.
Annotated Bibliography Page 19

Title Economic Consequences of Transport Improvements
Authors T.R. Lakshmanan and Lata Chatterjee
Sponsor Access
Date 2005
Pages 6
Category Economic Development, Modes: All
Note
Online
Summary
http://www.uctc.net/access/26/Access%2026%20‐%2006%20‐
%20Economic%20Consequences%20of%20Transport%20Improvements.pdf
Analyzes the short and long‐term effects of transportation investment on a social and
economic scale and describes how this occurred over the history of American
development. For example, the authors contrast economic forces in the age of
industrialization with the recent shift to globalization and point out that
industrialization promoted urbanization, while globalization requires the access and
knowledge present in major urban centers with the result that less urbanized regions
generally are at a disadvantage.
One thesis is that economic outcomes are the result of 3 factors, all of which must be
taken into account to assess the economic impact of transportation: the nature of the
transportation network, the state of economic development in the area, and the nature
of competition in the region. This broader range of interrelationships and data are seen
as not typically considered in transportation analyses.
Annotated Bibliography Page 20

Title Transportation Cost and Benefit Analysis Techniques, Estimate and Implications
Authors Todd Litman
Sponsor Victoria Transport Policy Institute (VTPI)
Date January, 2009 (updated)
Pages 500
Category BCA, Modes: All; Economic Shifts
Note
Online http://www.vtpi.org/tca/
Summary
Exhaustive guide on appraising and measuring costs and benefits of transportation,
including several that the authors point out are not normally assessed such as changes
in walking conditions and GHG emissions. The report provides monetized estimates of
20 costs, including vehicle ownership and operation, travel time, congestion, land value,
and safety. Sources of data are identified, methods of analysis reviewed, and a number
of transportation impact studies are summarized.
The author makes a distinction between economic efficiency and economic
development, reminding us that economic efficiency is maximized when prices reflect
marginal costs. The conclusion in Chapter 9 is made that automobile use is underpriced
based on the analysis in earlier sections of the guidebook. And, that due to underpricing
‐which has to be paid for in other taxes and household expenditures and which diverts
resources from production and consumption of other goods ‐ economic development is
impeded. Conversely, "policies which reduce consumer expenditures on motor vehicles
and fuel tend to increase employment and business activity, particularly in regions that
import petroleum".
Annotated Bibliography Page 21

Title Evaluating Public Transit Benefits and Costs: Best Practices Guidebook
Authors Todd Litman
Sponsor Victoria Transport Policy Institute (VTPI)
Date October, 2011
Pages 124
Category BCA, Modes: Transit
Note
Online http://www.vtpi.org/tranben.pdf
Summary The report serves as a "comprehensive framework" for comparing costs and benefits of
automobile transportation to public transit, including productivity gains and property
values. It distinguishes between efficiency‐justified and equity justified services and the
measures used when considering transit and automobile use. Efficiency‐justified
services that intend to decrease congestion, accidents, and pollution, can be analyzed
using indicators that concentrate on cost‐effectiveness such as costs per passenger‐mile
or benefit‐cost ratio. Equity‐justified services aim to provide transport to disadvantaged
individuals.
The report also provides a comprehensive cost comparison summary between transit
and automobile investment including "urban‐peak external costs of transit and
automobile" and "per capita annual external costs of transit and automobile users".
Among the 12 costs calculated are operating subsidy, right of way land value,
congestion, external parking, and congestion. The average external costs per passenger
mile are assessed as $.202 for a car with an auto occupancy of 1.42 and $.336 for a
diesel bus with 10.2 passengers. However, under urban peak conditions externalities
are greater for auto travel and transit is its most efficient due largely to higher
passenger loads, almost reversing the relationship ($.464 for auto and $.295 for transit
ppm. The author urges individual analysis for each project and consideration of the
equity aspects of transit subsidy.
Annotated Bibliography Page 22

Title Evaluating Non‐Motorized Transportation Benefits and Costs
Authors Todd Litman
Sponsor Victoria Transport Policy Institute (VTPI)
Date October, 2011
Pages 75
Category BCA, Modes: Non‐Motor Vehicles
Note
Online http://www.vtpi.org/nmt‐tdm.pdf
Summary This report is a guide to assessing the costs and benefits of promoting non‐motorized
transportation as a substitute for automobile travel. It examines the specific conditions
and demand for non‐motorized transport and identifies significant benefits which are
often disregarded or undervalued in conventional assessments of transport economics.
It outlines the benefits from improved non‐motorized transport conditions and activity,
such as land use impacts and economic development, and the factors that affect their
magnitude.
The report also provides specifics on evaluating monetary values for a variety of nonmarket
benefits such as cleaner air and reduced traffic risk. Several examples of nonmotorized
economic evaluations are included. For instance, a study conducted in
Portland examined how costs of past and planned investments in bicycling relate to
health and related benefits. It found by 2040, “investments in the range of $138 to $605
million will result in health care cost savings of $388 to $594 million, fuel savings of
$143 to $218 million, and savings in value of statistical lives of $7 to $12 billion”. The
report found that in areas where good walking and cycling conditions are present,
consumer demand for non‐motorized transportation is higher, which accounts for 10%‐
20% of total trips in urban areas.
Annotated Bibliography Page 23

Title SSTI Review of PennDOT’s Smart Transportation
Authors Douglas MacDonald, et al.
Sponsor Pennsylvania Department of Transportation
Date 2011
Pages 48
Category Economic Development Program; Measures
Note
Online
Summary
http://ssti.us/wp/wpcontent/uploads/2011/02/SSTI_Review_of_PennDOT_Smart_Transportation.pdf
This report includes a description of the Pennsylvania Community Transportation
Initiative (PCTI) and provides a review of useful performance measures proposed by an
SSTI peer review panel. The measures include: Gross State Product per VMT;
Anticipated Future Costs of Maintaining the Facility; and suggests that more work is
needed to identify job creation and preservation measures.
Annotated Bibliography Page 24

Title Improving the Practice of Transport Project Appraisal
Authors Organisation for Economic Cooperation and Development (OECD)
Sponsor ITF Round Tables
Date April, 2011
Pages 111
Category BCA, Modes: All
Note Available for purchase from the OECD.
Online
Summary
http://www.oecdbookshop.org/oecd/display.asp?CID=&LANG=EN&SF1=DI&ST1=5KGH
RJMNQVNR
This book comprises three papers examining how France, Mexico, and the United
Kingdom implemented benefit‐cost analysis strategies. It includes an analysis of the role
of BCA in each country, key elements for implementation, and an appraisal of the
methods’ effectiveness.
Annotated Bibliography Page 25

Title
Authors
Background Paper: Transportation and Economic Growth
Oregon Department of Transportation
Sponsor Oregon Department of Transportation, Oregon Transportation Plan Update
Date April, 2004
Pages 26
Category Economic Impact
Note
Online http://www.oregon.gov/ODOT/TD/TP/docs/otpPubs/EconPolRev.pdf
Summary
This report examines trends that affect transportation and economic development and
appropriate policy considerations at the state and national level. It provides extensive
information on Oregon freight corridors and freight volume and value figures.
Approximately half of this short report is devoted to a detailed framework for assessing
transportation and economic development strategies, outlined in Appendix A. In
identifying economic benefits, the authors stress the need to determine the industries
affected and their individual characteristics to assess what role transportation and
other factors play in attraction and retention.
Annotated Bibliography Page 26

Title Oregon Statewide Integrated Model (SWIM2)
Authors Parsons Brinckerhoff, HBA Specto Incorporated, EcoNorthwest
Sponsor Oregon Department of Transportation
Date November, 2010
Pages 370
Category Modes: All
Note
Online http://www.oregon.gov/ODOT/TD/TPAU/docs/References/SWIM2.pdf
Summary
This document describes in detail the development and functions of the statewide
integrated transport‐land use model in the state of Oregon, SWIM2. The SWIM2 model
uses different units that cover components of the entirety of the system in order to
represent the performance of land use, economy and transport systems. For instance,
the production allocations and interactions module “determines commodity (goods,
services, floor space, labor) quantity & price in all exchange zones to clear markets,
including the location of business and households by beta zone”.
These modules, in compliance with a PECAS spatial allocation model and “activity‐based
micro‐simulation” transport models, customize the framework of SWIM2. The full
model is run every three years, while designated spatial‐economic modules are
examined each year. The report includes equations and processes used in order to
complete the design of the model, how it established the values of the parameters and
inputs of the modules, and explains the development and comparisons of the observed
“target” data.
Annotated Bibliography Page 27

Title Statewide Economic Benefits of Transportation Investment
Authors Todd Pickton, Janet Clements, and Robert Felsburg
Sponsor Colorado Department of Transportation
Date April, 2007
Pages 68
Category BCA, Scenarios
Note
Online
Summary
http://www.coloradodot.info/programs/statewideplanning/documents/econbenefit2.pdf
Provides information concerning statewide economic benefits and non‐quantifiable
benefits of transportation investment in the state of Colorado. Identifies different levels
of investment through differing scenarios in CDOT's 2030 Statewide Transportation
Plan. Benefits quantified are primarily travel time savings, vehicle operating costs and
reduced accident and injury.
The authors point out that a number of other benefits would obtain from increased
investment in the transportation system, but are not quantified. These include: quality
of life improvements, new jobs, better access to recreation.
Annotated Bibliography Page 28

Title Transportation Planning Performance Measures
Authors Bud Reiff and Brian Gregor
Sponsor Oregon Department of Transportation
Date October, 2005
Pages 94
Category Performance Measures, Modes: All
Note
Online
Summary
http://www.oregon.gov/ODOT/TD/TPAU/docs/References/PerfMeas.pdf?ga=t
This report addresses planning policies for the statewide Oregon Transportation Plan
and several regional transportation plans for which performance measures have not
been developed or fully tested. The policies subject to question include matters of
balance and adaptability, economic vitality, safety and security, environmental justice,
land use compatibility, and quality of life. In order to target these issues, the research
established and tested six performance measures intended for implementation by the
Oregon Department of Transportation.
This report provides the framework for the development and methods used to test the
six measures. The performance measures chosen for use were urban mobility,
transportation cost index (TCI), percent of travel market‐basket accessible by non‐auto
modes, auto‐dependence index, freight delay costs, and road network concentration
index. A description, explanation, and specification for analyzing each measure is
included in the report. The report concludes with suggestions for performance
measures for future use in economic vitality such as private/public investment ratio and
number of jobs created and enabled, but only the cost of freight delay was adopted.
Annotated Bibliography Page 29

Title Transportation and Economic Development 2002
Authors M. Roskin
Sponsor Transportation Research Board (TRB), Transportation Research Circular Number E‐C050
Date May, 2003
Pages 104
Category Transportation and Economic Development
Note
Online http://gulliver.trb.org/publications/circulars/ec050.pdf
Summary This is a compendium of articles and papers from the 2002 Conference on Economic
Development, with each subject written by different authors and organizations. 18
major topics are included, such as planning and analysis tools, decision making, joint
development, business perspectives, and international, urban and state‐wide practices.
It captures the perspectives of transportation and economic development professionals
across the country and in other countries largely making the case for the linkage
between economic development and transportation, economic efficiency and
transportation, and for consideration of other factors ranging from international trade
to social and environmental considerations.
While some sections such as the review of tools are dated, many of the topics are still
timely such as those on decision making, business perspectives and of the relationship
of transportation to economic development. Thus the report continues to have many
uses, but for the purposes of this report, it adds to an understanding of what is a
definition for economic development and what are the economic effects of
transportation. In that regard, see the article by Glenn Forkenbrock’s article pp. 6 and 7
providing 10 factors to consider to increase the ability of transportation investments to
have a positive effect on economic competitiveness of a given region.
Annotated Bibliography Page 30

Title
Performance Measures for Operational Effectiveness for Highway Segments and
Systems
Authors Terrel Shaw
Sponsor Transportation Research Board (TRB), NCHRP Synthesis 311
Date 2003
Pages 66
Category Performance Measures, Modes: Motor Vehicles
Note
Online
Summary
Includes measures that cross over for economic calculations on pp. 8‐9 and related text
later in report.
http://onlinepubs.trb.org/onlinepubs/nchrp/nchrp_syn_311.pdf
This report examines the use of performance measures for monitoring highways on a
national scale. Defines highway systems and segments and why performance measures
should be used. Explains necessary management practices in order to utilize
performance measures nationally.
While these operational measures are not directed at outcomes such as economic
impact, measures that are included in economic evaluations, such as cost, travel time,
and delay, are described in this report.
Annotated Bibliography Page 31

Title Freight Rail Funding
Authors State Smart Transportation Initiative (SSTI)
Sponsor SSTI
Date 2011
Pages 3
Category State Funding, Modes: Rail
Note
Also see: http://www.ksdot.org/burrail/rail/publications/rehstudy2005.pdf
Online
Summary
http://ssti.us/wp/wpcontent/uploads/2011/01/Snapshot.Shortline%20RR%20Funding.pdf
The document provides a brief history of Local Rail Service Assistance Program (LRSA)
established in 1973, which stimulated the adoption of rail preservation programs in the
majority of states. It uses the state of Kansas as an example of one of many states that
established state‐funded programs to address rail needs.
The report considers the Kansas State Rail Service Improvement Fund on an economic
scale since its creation in 1999. Among the benefits of avoidance of abandonment are
reduced shipper costs, reduced safety incidents, improved speed of trains, and
improved air quality. The overall benefit cost ratio based on the operational
improvements alone is $1 to $9. Adding in the benefits of continued access to rail, the
ratio jumps to over $1 to 30$.
Annotated Bibliography Page 32

Title Westport Waterfront TOD Cost Benefit Analysis
Authors STV, Inc., Redevelopment Economics, and CWS Consulting
Sponsor Baltimore, MD DOT
Date August, 2010
Pages 62
Category CBA, Economic Competitiveness
Note
Online
Summary
http://redevelopmenteconomics.com/yahoo_site_admin/assets/docs/Westport_cost_b
enefit_final_full_from_website.462721.pdf
This report describes the city of Baltimore’s Department of Transportation request for a
Transportation Investment Generating Economic Recovery II (TIGER II), to support a
network of roads, bridges, railroad crossings, transit stations, and shared‐use trails as
part of a sustainable community development in a distressed area of the region.
It outlines the economic costs and benefits of the Transit‐Orientated Development
project with a detailed section on “livability”, including the results of savings of vehicle
miles of travel, increased access to non‐auto forms of travel, and land value.
Annotated Bibliography Page 33

Title Sustainability Performance Measures for State DOTs and Other Transportation Agencies
Authors Texas Transportation Institute, et al.
Sponsor National Cooperative Highway Research Program, NCHRP 08‐74
Date July, 2011
Pages 201
Category Performance Measures
Note
Online
Summary
http://onlinepubs.trb.org/onlinepubs/nchrp/docs/NCHRP08‐74_FR.pdf
The NCHRP 08‐74 report examines sustainable techniques that can be applied as
performance measures for state departments of transportation and other
transportation agencies. The author describes three types of primary components of
sustainability: fundamental, overarching, auxiliary. The report provides a set of 11 goals
for transport agencies to address in order to consider sustainability in practice. These
goals are placed into two categories: 1) "Functional goals (relating to sustainability in
how the transportation system functions – i.e., goals that 'provide' and ‘ensure')"; and
2) "Impact goals (relating to how sustainability is to be considered in terms of the
transportation system’s broader impacts – i.e., goals that 'protect' and 'reduce')", and
includes performance measures related to each of the goals.
Two goals are especially relevant to economic performance: Goal 6. Economic
Prosperity ‐‐"Ensure the transportations system's development and operation support
economic development and prosperity"; the second is Goal 7, Economic viability: To
ensure the economic feasibility of transportation investments over time.
Annotated Bibliography Page 34

Title
Highway and Transit Investments: Options for Improving Information on Projects’
Benefits and Costs and Increasing Accountability for Results
Authors United States Government Accountability Office (GAO)
Sponsor GAO‐05‐172
Date 2008
Pages 92
Category BCA, Modes: Motor Vehicles
Note For further reading see: http://www.gao.gov/search?q=05‐172
Online http://www.gao.gov/new.items/d05172.pdf
Summary The information compiled for this report was based on surveys returned from 43 state
DOTs and 19 transit operators. It investigates how state, local, and regional levels
consider benefits and costs of transportation investments, how these factors can meet
projected outcomes, and techniques to improve transportation information availability
to decision makers. In order to improve the quality of economic analysis, the report
suggests looking at issues that improve the understanding of travel patterns, land use
measures, and the distribution of benefits within the population affected. Transit
investments were considered disadvantaged because typical transportation analysis did
not consider non‐auto owner benefits, economic development, as well as often not
including environmental benefits. While proposing a more comprehensive analysis, the
authors also warned against double counting, as well as making the null alternative too
dire.
The report also discusses factors that work against the use of analysis in investment
decisions such as: the structure and funding of federal programs on a modally oriented,
formula basis; non‐competitive legislative earmarks that do not have requirements for
funding; other federal requirements that have priority over economic analysis, such as
air quality analysis; and the cost of economic analysis, especially for some complex
corridors. (This document includes a detailed appendix of tables and figures that cover
survey results, trends in highway expenditures, usage and capacity, and information on
benefits attributable to highway and transit investment)
Annotated Bibliography Page 35

Title
Authors
Sponsor
Public Transportation: Federal Role in Value Capture Strategies for Transit is Limited, but
Additional Guidance Could Help Clarify Policies
United States Government Accountability Office (GOA)
GOA‐10‐781
Date July, 2010
Pages 55
Category
Note
Online
Summary
Mode: Transit; Economic results
http://www.gao.gov/new.items/d10781.pdf
The GAO has documented the use of value capture techniques around transit
investment through assessing strategies considered or used at 55 transit properties.
Techniques used include: joint development, special assessment districts, tax increment
financing, and development impact fees. The authors dtermined that the percentage of
a project’s cost covered by examples for 9 transit systems ranges 4% for a bus tunnel in
Seattle to as much as 61% for the new Beltline in Atlanta.
Success is dependent in most instances on the cooperation and partnerships that are
developed among the transit agency and the local government, adjacent property
owners, and/or private developers. Other important factors for success noted include:
density and zoning around the station, favorable economic conditions, and low crime
rates. State law also must allow the establishment of special assessment districts, tax
increment financing, and development impact fees. It was noted that some states such
as California and Maryland have allowed transit agencies to create assessment districts
within certain distance of stations. Confusing rules of the Federal Transit Administration
and the requirement for 1 to 1 parking space replacement were cited as barriers.
Annotated Bibliography Page 36

Title
Authors
Surface Transportation: Competitive Grant Programs Could Benefit from Increased
Performance Focus and Better Documentation of Key Decisions
United States Government Accountability Office (GAO)
Sponsor
GAO‐11‐234
Date 2011
Pages 60
Category Modes: Highways and Transit, Performance
Note
Online
Summary
http://www.gao.gov/new.items/d11234.pdf
The GAO reviewed the process and the results of awarding $1.5 billion in competitive
grant funding as part of the American Recovery and Reinvestment Act (ARRA). For this
program, Transportation Investment Generating Economic Recovery, the DOT was
required to develop criteria for awarding funding. GAO reviewed the criteria and the
award process.
In the course of the evaluation, GAO developed “lessons learned” that indicated
additional guidance was needed for applicants to meet some of the criteria, in particular
the economic competitiveness and cost benefit analysis requirements. The DOT review
teams determined that many applicants were not prepared to conduct the type of
analysis required.
As a result, information was prepared and training sessions in the form of webinars was
provided for subsequent TIGER competitions. This guidance is found for the latest
competition, TIGER IV, at: http://www.dot.gov/tiger/application‐resources.html
Annotated Bibliography Page 37

Title
Models to Predict the Economic Development Impact of Transportation Projects:
Historical Experience and New Applications
Authors Glen Weisbrod
Sponsor Economic Development Research Group (EDR Group)
Date December, 2007
Pages 25
Category Economic Performance Measures, Modes: All
Note
Online
Summary
http://www.edrgroup.com/edr1/bm~doc/models‐to‐predict‐the‐eco.pdf
This article provides a historical overview of the connection between transportation
and economics, beginning in Roman times and ending with current computerized
modeling. It explains that "predictive impact models used for decision‐making should be
sensitive to causal factors and elements of access impact known to make a difference in
the effect of transportation projects on regional economic growth and development".
Discusses a shift from a primary focus on economic benefits of time and cost savings to
broader functions of economic development such as accessibility roles in supply chains,
labor market expansion, and global trade growth.
The report explains how several classes of models have been implemented over time in
order to assess economic development and transportation. These include impact
models, land use‐development models, macro‐economic models, regional economic
simulation models, and local access models. The report examines each of these types
and provides a detailed history of a computer based model for each. For instance, it
provides an in depth account of REMI Policy Insight (REMI‐PI) to demonstrate a regional
simulation model. The first application of the model was to assess transportation and
calculate the economic growth impacts of business cost changes for a proposed
highway in Wisconsin in 1988. At this time, it was concluded that other models need to
be applied along with REMI‐PI in order to yield the most accurate results and an
economic geography element was added that modifies regional purchasing patterns
dependent on changes in generalized commodity access and labor access indices.
Annotated Bibliography Page 38

Title
Authors
Economic Impact of Public Transportation Investment
Glen Weisbrod and Arlee Reno
Sponsor
American Public Transportation Association (APTA) and Transit Cooperative Research
Program (TCRP) Project J‐11/Task 7
Date October, 2009
Pages 77
Category Economic Performance Measures, Modes: Transit
Note
Online
Summary
http://www.apta.com/resources/reportsandpublications/Documents/economic_impact
_of_public_transportation_investment.pdf
The report provides insight into investment in public transportation and its effects on
economic development in terms of employment, wages, and business income. It
provides analysis of five impacts from investment: spending impacts, travel
improvement impacts, access improvement impacts, non‐monetary impacts, other
economic impact measures. Access impacts, for example, account for “household
mobility benefits in terms of access to work, school, health care and/or shopping
destinations”. These factors can translate into increased productivity for businesses by
enabling access to a broader and diverse labor market and economies of scale from a
wider customer market.
Provides estimate of GDP increase 20 years after $1 billion of investment in public
transportation of $3.5 billion. These benefits are largely derived according to the
authors due to 5 key economic benefits from investments in public transportation:
“• travel and vehicle ownership cost savings for public transportation
passengers and those switching from automobiles, leading to shifts in
consumer spending;
• reduced traffic congestion for those traveling by automobile and truck,
leading to further direct travel cost savings for businesses and households;
• business operating cost savings associated with worker wage and reliability
effects of reduced congestion;
• business productivity gained from access to broader labor markets with
more diverse skills, enabled by reduced traffic congestion and expanded
transit service areas; and
• additional regional business growth enabled by indirect impacts of business growth
on supplies and induced impacts on spending of worker wages. At a national level, cost
savings and other productivity impacts can affect competitiveness in international
markets.”
The report provides insight into various analytical tools for assessing economic impact,
including an early application of the REMI mode in a Philadelphia SEPTA study that
examined the effect of reducing commuter rail service on the movement of jobs from
across the river in downtown Philadelphia to New Jersey. The study was widely used in
arguments for the passage of the Intermodal Surface Transportation Efficiency Act of
1991 (otherwise known as ISTEA).
Annotated Bibliography Page 39

Title
Authors
Extending Monetary Values to Broader Performance and Impact Measures: Applications
for Transportation and Lessons from Other Fields
Glen Weisbrod, Teresa Lynch, and Michael Meyer
Sponsor
American Association of State Highway and Transportation Officials (AASHTO), NCHRP
08‐36‐61
Date August, 2008
Pages 24
Category Economic Performance Measures, Modes: All
Note
Online
Summary
http://www.edrgroup.com/attachments/‐01_Weisbrod‐Monetizing‐10Augcomplete.pdf
This paper gives examples of monetization techniques for 'hard to quantify' benefits,
including environment, health, safety, and economic development. It establishes a
means of classifying direct impacts on the system and its users, as distinct from broader
indirect effects on the population. In considering economic development, it proposes
the following indicators as indirect impacts: Change in household costs and business
costs of transport logistics; Recurring and non‐recurring delays and traffic Incidences;
Jobs created; Property tax revenues. Three case studies: Australian roads, Appalachia
economic development, and Wisconsin energy programs show how technology
transfers between road and non‐road agencies is improving the understanding of
impacts.
The authors also point out that economic development is the net effect of many
offsetting factors. Focusing only on traveler benefits and not including non‐traveler
benefits is seen as common practice due to the difficulty of measurement, the
possibilities of double counting, and not relevant to travel flow. However, they point to
policy interest in measuring indirect benefits, such as air pollution cost and economic
development benefits, and to increasing methods of measurement.
Annotated Bibliography Page 40

Title
Procedures for Assessing Economic Development Impacts from Transportation
Investments
Authors Glen Weisbrod
Sponsor Transportation Research Board (TRB), NCHRP Synthesis 290
Date June, 2000
Pages 111
Category Economic Development, Modes: All
Note
Online http://www.edrgroup.com/pdf/synth290.pdf
Summary This report defines and measures economic development in transportation planning
and includes an introduction to basic concepts and analysis. Determines direct, indirect,
and induced effects of transportation investment and how the total regional output,
gross regional product, wages and jobs are affected. Although personal income,
tourism, and property values are important outcomes of economic development, the
document identifies jobs, in terms of employment, as the most popular impact
measure. This report provides the methods and scope of four different types of impact
studies: to assess proposed investment; for planning and regulatory review; for public
education; and for post‐project evaluation.
The report describes problems with existing procedures in accounting for economic
development impacts due to a lack of consistency in defining economic impacts and
insufficient data sources. In order to more appropriately assess economic development,
the authors conclude work must be done to address the following: “validate a link
between transportation and economic development at the project corridor or facility
level; develop more complete and understandable analysis tools; develop better staff
training and standards for measurement”.
Annotated Bibliography Page 41

Title
Quantifying the Economic Domain of Transportation Sustainability
Authors
Jason Zheng, Carol Atkinson‐Palombo, Christopher McCahil, Ryan O’Hara, and Norman
Garrick
Sponsor Transportation Research Board (TRB)
Date July, 2011
Pages 16
Category Sustainability
Note
Online
Summary
Available for purchase at: http://pubsindex.trb.org/view/2011/C/1092720
http://amonline.trb.org/12koec/1
Using a broad definition of sustainability including environmental, social, and economic
factors, the authors create a composite index to rank states based on transportation
affordability, efficiency, financing, and resiliency. Urbanized states with lower
automobile mode share rank higher than the others.
Annotated Bibliography Page 42