TAILIEUCHUNG - Smart Transportation Economic Stimulation Infrastructure Investments That Support Economic Development

Critics sometimes point out that public transit requires more public subsidy per passenger-mile than automobile travel, but this comparison is unfair (“Transit Evaluation,” VTPI 2009). About half of transit subsidies are intended to provide basic mobility (service at times and locations with low demand, and special services for people with disabilities), which requires large subsidy per passenger-mile. Transit operates on major urban corridors where any form of transport is costly to provide. In addition, automobile travel receives significant non-government subsidies such as free parking. When properly evaluated, public transit often turns out to be more cost effective and require less. | z Transport PolicyINSTITUTE EFFICIENCY EQUITY CLARITY Info@ 250-360-1560 Smart Transportation Economic Stimulation Infrastructure Investments That Support Economic Development 21 April 2009 Todd Litman Victoria Transport Policy Institute Investments and policies that create more multi-modal transportation systems can provide significant economic benefits particularly over the long run. Abstract This report discusses factors to consider when evaluating transportation economic stimulation strategies. Transportation investments can have large long-term economic social and environmental impacts. Expanding urban highways tends to stimulate motor vehicle travel and sprawl exacerbating future transport problems and threatening future economic productivity. Improving alternative modes walking and cycling conditions and public transit service tends to reduce total motor vehicle traffic and associated costs providing additional long-term economic savings and benefits. Increasing transport system efficiency tends to create far more jobs than those created directly by infrastructure investments. Domestic automobile industry subsidies are ineffective at stimulating employment or economic development. Public policies intended to support domestic automobile sales could be economically harmful in the long run if they increase future energy consumption and transportation system inefficiency. T odd Alexander Litman 2009 You are welcome and encouraged to copy distribute share and excerpt this document and its ideas provided the author is given attribution. Please send your corrections comments and suggestions for improvement. Smart Transportation Economic Stimulation Victoria Transport Policy Institute Introduction Economic stimulation refers to policies and investments that increase employment and business activity Litman 2009a . Some stimulation strategies are better than others overall because they help achieve additional strategic goals. This is particularly

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