A RETURN OF INVESTMENT ANALYSIS OF VIRGINIA'S INTERSTATE SYSTEM

THE RESEARCHER ESTIMATES THAT THE CONSTRUCTION OF THE INTERSTATE SYSTEM IN VIRGINIA GENERATED NEARLY TWO AND ONE HALF BILLION DOLLARS OF ADDITIONAL PERSONAL INCOME AS A RESULT OF INCREASED EMPLOYMENT FROM 1961 TO 1968. IN ADDITION, INTERSTATE HIGHWAY INVESTMENT STIMULATED ADDITIONAL PRIVATE CAPITAL INVESTMENT OF NEARLY THREE BILLION DOLLARS BETWEEN 1964 AND 1968 AND REAL ESTATE TAXES AND STATE INCOME TAXES INCREASED BY OVER 200 MILLION DOLLARS. AFTER COMPARING THE COST OF CONSTRUCTION AND MAINTENANCE OF THE HIGHWAY SYSTEM WITH THE ECONOMIC ACTIVITY GENERATED BY THE HIGHWAY INVESTMENT, THE RESEARCHER CONCLUDES THAT THE HIGHWAY INVESTMENT ACHIEVED AN 11.7 PERCENT ANNUAL RETURN. THOSE ESTIMATES WERE DEVELOPED BY COMPARING PROJECTED GROWTH OF EMPLOYMENT AND TAXES FOR 15 STUDY AREAS WITH THE ACTUAL CHANGE IN THESE INDICATORS SUBSEQUENT TO HIGHWAY CONSTRUCTION. THE AUTHOR STATES THAT EVEN THOUGH THIS AGGREGATIVE APPROACH MAY NOT CONSIDER SOME TEMPORARY LOSSES TO SMALL BUSINESSES, THE USE OF THE RETURN ON INVESTMENT APPROACH IS SUPERIOR TO THE BENEFIT-COST RATIO BECAUSE IT PROVIDES AN INDICATION OF THE BROAD IMPACT OF THIS INVESTMENT ON THE STATE. /BPR/

  • Record URL:
  • Supplemental Notes:
    • Hpr, Hpr 1(4)
  • Corporate Authors:

    Virginia Highway Research Council

    Charlottesville, VA  United States 

    Virginia Department of Highways

    Richmond, VA  United States  23219

    Bureau of Public Roads /US

    400 7th Street, SW
    Washington, DC  United States  20590
  • Authors:
    • Walton, L E
  • Publication Date: 1969

Subject/Index Terms

Filing Info

  • Accession Number: 00201216
  • Record Type: Publication
  • Source Agency: Bureau of Public Roads /US
  • Files: NTL, TRIS, STATEDOT
  • Created Date: Feb 9 1970 12:00AM