What are the economic benefits of transportation projects for communities?

1 Job creation

One of the most obvious and direct economic benefits of transportation projects is job creation. Transportation projects require labor, materials, equipment, and services from various sectors, such as construction, engineering, manufacturing, and logistics. These activities generate income and spending that ripple through the economy, creating more jobs and output in other industries. According to the American Road and Transportation Builders Association, every $1 billion invested in transportation infrastructure supports about 13,000 jobs for a year. Moreover, transportation projects can also create long-term jobs by attracting new businesses and industries that rely on efficient and reliable transportation networks.

2 Productivity and competitiveness

Another economic benefit of transportation projects is productivity and competitiveness. Transportation projects can improve the efficiency and reliability of moving people and goods, reducing travel time, cost, and uncertainty. This can boost the productivity of workers, businesses, and markets, as they can save time and money, access more opportunities, and increase their output and quality. For example, a study by the Eno Center for Transportation estimated that reducing congestion by 10% in the 40 largest metropolitan areas in the US could save $19 billion in travel time and fuel costs and increase the gross domestic product by $28 billion per year. Furthermore, transportation projects can enhance the competitiveness of regions and nations by connecting them to domestic and global markets, facilitating trade, investment, and innovation.

3 Quality of life and social equity

A third economic benefit of transportation projects is quality of life and social equity. Transportation projects can improve the accessibility and affordability of transportation options for people, especially those who are low-income, elderly, disabled, or marginalized. This can improve their well-being, health, education, and employment outcomes, as they can access essential services, amenities, and opportunities more easily and safely. For instance, a report by the Victoria Transport Policy Institute found that improving public transit service quality and availability can reduce poverty and increase social inclusion by providing low-cost mobility, enhancing economic opportunity, and supporting community development. Additionally, transportation projects can improve the livability and attractiveness of places by creating more walkable, bikeable, and transit-oriented neighborhoods, reducing noise and air pollution, and preserving natural and cultural resources.

4 Environmental sustainability

A fourth economic benefit of transportation projects is environmental sustainability. Transportation projects can reduce the environmental impacts of transportation systems, such as greenhouse gas emissions, energy consumption, land use, and waste generation. This can save costs and resources, mitigate climate change, and protect ecosystems and biodiversity. For example, a study by the International Energy Agency estimated that shifting to low-carbon transport modes and technologies could save $70 trillion in fuel and vehicle costs and avoid 6 gigatons of carbon dioxide emissions by 2050. Moreover, transportation projects can also create environmental benefits by integrating green infrastructure, such as stormwater management, urban forestry, and renewable energy, into transportation design and planning.

5 Measuring and communicating economic benefits

To realize and maximize the economic benefits of transportation projects, urban planners need to measure and communicate them effectively. Measuring economic benefits involves using various methods and tools, such as cost-benefit analysis, economic impact analysis, regional economic modeling, and social return on investment, to quantify and compare the costs and benefits of different transportation alternatives and scenarios. Communicating economic benefits involves using various strategies and techniques, such as storytelling, visualization, stakeholder engagement, and media outreach, to convey and demonstrate the value and impact of transportation projects to decision-makers, funders, partners, and the public.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?