Interstate 73 Economic Impact Analysis, Part 2: A Guide to the Methodology and Results

The Transportation Planning Division of the Virginia Department of Transportation (VDOT) is currently considering seven corridors along which VDOT may build the future Interstate 73. The purpose of this technical assistance project is to estimate the impact that construction off I-73 along any one of these corridors would have on the state's economy. The project estimates the economic impact by two different methods. The first method is undertaken in cooperation with the Virginia Employment Commission's Economic Information Services Division. A separate fifteen-page report, An Economic Impact Analysis of the Potential Interstate 73 Corridors (February 1994), describes the first method and its results. A sizeable literature describes recent research into the relationship between transportation investment and productivity. The second method, described here, assigns a dollar value to the existing highway net in the localities that would be affected by each of the corridors under consideration; the value is equal to estimated replacement cost. A productivity multiplier or "elasticity" value is selected from the range of such values estimated in recent research efforts. The magnitude of the projected cost for the future 1-73 in comparison with the value of the existing road net, together with the chosen elasticity, will determine for each proposed interstate corridor an estimate of the impact on taxable sales and adjusted gross income in each locality through which 1-73 would pass, and an estimate of the impact on taxable sales and adjusted gross income in the state as a whole.

• 
• Record URL:
  • https://rosap.ntl.bts.gov/view/dot/20150
• Corporate Authors:

  Virginia Transportation Research Council

  530 Edgemont Road
  Charlottesville, VA  United States  22903
• Authors:
  • Gillespie, James S
• Publication Date: 1994-2

Language

• English

Media Info

• Media Type: Web
• Features: References;
• Pagination: 18p

Subject/Index Terms

• TRT Terms: Capital investments; Economic analysis; Economic factors; Economic impacts; Guidelines; Land use planning; Road construction; Technical assistance; Transportation corridors; Transportation planning
• Identifier Terms: Interstate 73
• Uncontrolled Terms: Traffic impact analysis
• Geographic Terms: Virginia
• Subject Areas: Economics; Highways; Planning and Forecasting; I10: Economics and Administration; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 01342765
• Record Type: Publication
• Report/Paper Numbers: VTRC 94-TAR9
• Files: NTL, TRIS, STATEDOT
• Created Date: Jun 23 2011 9:07AM