Transportation: Impact on Economy, Project 2008-05, Volume I and Volume II
This report estimates both the one-time and the on-going economic and fiscal benefits from transportation investments. The report provides the new Jersey Department of Transportation (NJDOT) with two general software programs to enable both types of benefits to be estimated for specific highway transportation projects. These programs can assist NJDOT in its planning and economic analysis. The report uses past NJDOT highway transportation projects to identify the myriad inputs used in highway projects and the expenditures made on these inputs for 40 project types and locations (e.g., bridge replacement, road widening, intersection improvements, etc. in North and South New Jersey). Using the R/ECON™ Input-Output Model, estimates of the one-time benefits of each project type/location are made and a general-use software program is developed. This Transportation Investment Impact Estimator is applied to NJDOT’s Ten-Year Capital Plan. The analysis indicates that over 95,000 job-years, an additional $7.9 billion in gross domestic product, and an additional $6 billion in compensation (income) will be generated in New Jersey from the estimated $10.7 billion in investment expenditures of the Ten-Year Capital Plan. In addition, a similar analysis is conducted for the $832 million in state and local highway projects that will receive the first-round of support from the American Recovery and Reinvestment Act. These projects will generate over eight thousand job-years, $627 million in additional gross domestic product, and $480 million in additional income for New Jersey. The report proceeds to analyze the reductions in recurring costs (due to congestion, traffic accidents, environmental damages, vehicle operation, and maintenance) that result from improvements in transportation capacity. The North Jersey Regional Transportation Model is used together with cost functions (CUBE) developed specifically for New Jersey. Cost-benefit analysis is conducted for five past highway projects that increased transportation capacity. The analysis indicates that each of the projects was economically efficient; i.e., the present value of the future stream of economic benefits (reduced costs) generated by the project exceeds (by significant margins) the present value of the investment costs of the project. A software program is developed that allows NJDOT to conduct such cost-benefit analyses for any past, current, or future projects that increase transportation capacity in north New Jersey.
- Record URL:
- Summary URL:
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Corporate Authors:
Rutgers University, New Brunswick
Edward J. Bloustein School of Planning and Public Policy
33 Livingston Avenue
New Brunswick, NJ United States 08901Rutgers University, Piscataway
Department of Civil and Environmental Engineering, 623 Bowser Road
Piscataway, NJ United States 08854New Jersey Department of Transportation
Bureau of Research, 1035 Parkway Avenue, P.O. Box 600
Trenton, NJ United States 08625-0600Federal Highway Administration
1200 New Jersey Avenue, SE
Washington, DC United States 20590 -
Authors:
- Seneca, Joseph J
- Ozbay, Kaan
- Lahr, Michael Lincoln
- Irving, Will
- Bartin, Bekir
- Mantell, Nancy
- Mudigonda, Sandeep
- Jahan, Nusrat
- Publication Date: 2009-9
Language
- English
Media Info
- Media Type: Web
- Edition: Final Report
- Features: Appendices; Figures; References; Tables;
- Pagination: 205p
Subject/Index Terms
- TRT Terms: Benefit cost analysis; Economic analysis; Economic benefits; Economics; Input output models; Investments; Programming (Planning); Software
- Identifier Terms: American Recovery and Reinvestment Act of 2009
- Uncontrolled Terms: Highway projects
- Geographic Terms: New Jersey
- Subject Areas: Economics; Highways; I10: Economics and Administration;
Filing Info
- Accession Number: 01149205
- Record Type: Publication
- Report/Paper Numbers: FHWA-NJ-2009-015
- Files: TRIS, USDOT, STATEDOT
- Created Date: Jan 27 2010 4:27PM