REGIONAL ECONOMIC EFFECTS OF HIGHWAY INVESTMENT-A CASE STUDY OF THE INTERSTATE SYSTEM

ECONOMIC ACTIVITY GENERATED BY INTERSTATE HIGHWAY CONSTRUCTION EXPENDITURES IS ESTIMATED FOR EACH OF 10 CENSUS REGIONS IN THE NATION. NATIONALLY, INTERSTATE HIGHWAY EXPENDITURES OF $2.6 BILLION ANNUALLY RESULTED IN THE GENERATION OF APPROXIMATELY 955 THOUSAND JOBS AND MORE THAN $7.5 BILLION IN TOTAL ECONOMIC ACITIVITY EACH YEAR. THERE ARE REGIONAL VARIATIONS IN THESE ECONOMIC IMPACTS. FOR EXAMPLE, IN THE MOUNTAIN STATES REGION, INTERSTATE SYSTEM EXPENDITURES OF $5.5 BILLION BETWEEN 1956 AND 1975 GENERATED AN AVERAGE ANNUAL EMPLOYMENT OF 77,000 OR NEARLY 3 PERCENT OF TOTAL EMPLOYMENT IN THAT REGION. IN THE PACIFIC REGION THE IMPACT WAS ONLY 1 PERCENT OF TOTAL EMPLOYMENT. THE METHODOLOGICAL APPROACH INVOLVED THE ADAPTION OF A MULTIREGIONAL INPUT-OUTPUT TABLE (INTER-INDUSTRY TRANSACTIONS FOR EACH REGION WHICH CONSIDERS INTERREGIONAL COMMODITY FLOWS). BENEFITS ARE DERIVED FROM LOWER COST TRANSPORTATION AND TRAVEL IN EACH REGION BY DIVIDING NATIONAL ESTIMATES OF BENEFITS OF $108.5 BILLION. THE BENEFITS ARE BASED ON THE ESTIMATED SAVINGS OF THE INTERSTATE SYSTEM FROM 1957-1979 AND ARE DESCRIBED IN A CONGRESSIONAL REPORT, "BENEFITS OF INTERSTATE HIGHWAYS". THE ESTIMATE OF REGIONAL BENEFITS IS BASED LARGELY ON EACH REGION'S SHARE OF HIGHWAY FREIGHT, PASSENGERS MILES AND VEHICLE REGISTRATIONS. THIS METHOD ASSIGNS THE SAVINGS TO THE STATES ON THE BASIS OF ORIGIN AND DESTINATION OF FREIGHT AND PASSENGERS RATHER THAN THE PROPORTION OF TRAVEL IN EACH STATE. THE RELATIONSHIP OF THESE BENEFITS TO HIGHWAY CONSTRUCTION EXPENDITURES ALSO VARIES BY REGION. /FHWA/

  • Corporate Authors:

    Jack Faucett Associates, Incorporated

    4550 Montgomery Avenue, Suite 300N
    Bethesda, MD  United States  20814

    Federal Highway Administration

    1200 New Jersey Avenue, SE
    Washington, DC  United States  20590
  • Publication Date: 1971-7

Subject/Index Terms

Filing Info

  • Accession Number: 00201233
  • Record Type: Publication
  • Source Agency: Federal Highway Administration
  • Report/Paper Numbers: Fh-11-7292
  • Files: TRIS, USDOT
  • Created Date: Aug 3 1972 12:00AM