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Interactions between Transportation Capacity, Economic Systems and Land Development

By Economic Development Research Group with ICF International, Wilbur Smith Associates, Cambridge Systematics, Texas Transportation Institute, University of Iowa Public Policy Institute and Susan Jones Moses Associates, 2008-2009

Strengthening the economic vitality of a region (jobs and income) is one of the primary reasons for investing in highway capacity. However, existing tools for understanding and assessing the potential and actual economic impacts of highway projects are often criticized as expensive, difficult to use and hard to understand.

To address these concerns, the Strategic Highway Research Program (SHRP2) funded a $1.75 million project to develop and assemble an international database of actual case study experience regarding the economic development changes associated with new highways and expansion projects, and develop a web-based tool that can be used by transportation agencies to access that database.

The SHRP2 program is directed by the Transportation Research Board, a unit of the National Academies. The program was established by Congress to investigate the underlying causes of highway congestion and develop better approaches for systematically integrating environmental, economic, and community requirements into the planning process for the 21st century. To conduct the SHRP2 study of transportation capacity and economic development, the SHRP2 panel selected the team led by Economic Development Research Group, which also includes ICF International, Wilbur Smith Associates, Cambridge Systematics, Texas Transportation Institute, the University of Iowa Public Policy Institute and Susan Jones Moses Associates.

The study, scheduled for completion in 2009, will include the following elements:

• A critique, from a decision maker point-of-view, of the methods and results of economic impact analysis for new highway capacity.

• A categorization (typology) of conditions affecting the economic impact of highway capacity, e.g., section of the country, urban high growth, suburban, rural, very rural, transitional, port city.

• Improved methods and tools, including case study-based tools, to better represent the primary, secondary, and cumulative contribution of highway capacity to the economic vitality of different types of regions, including the impact on land use and land values.

• Guidelines for communicating economic impacts to the public and elected officials.

• Recommendations for better integrating economic development impacts into systems planning and project development.

More on this project from the SHRP2 website