X hits on this document

Word document

MEASURING IMPROVEMENTS IN THE MOVEMENT OF - page 14 / 60

303 views

0 shares

0 downloads

0 comments

14 / 60

Measuring Improvements in the Movement of Highway and Intermodal Freight

A number of the efforts identified measures of economic impact. These measures include:

-

contribution of investment to GDP growth

-

-

direct and indirect jobs created

-

-

net present value of improvements

-

-

benefit-cost ratio of highway improvements

-

-

value of transportation-related goods and services delivered to the final customer

General Assessment

These measures focus on the economic benefits associated with investment in transportation facilities. Although transportation investments certainly can support efficient freight movement, the economic impacts of infrastructure investment are greater than those associated solely with freight movement. Transportation investment results in savings in travel time, reduction in vehicle operating costs, and a reduction in accident costs that accrue to all users, freight and non-freight.  

Several economic studies supported by the Office of Transportation Policy Studies have measured the effects of public highway capital on national output and economic performance.1 This work has examined the contributions of highway capital to the output growth and productivity of various industry sectors comprising the U.S. economy. It provides empirical evidence of the positive impacts of public highway capital on private sector costs of production and calculates the net social rate of return on highway infrastructure spending.  This work is discussed further below:

Contribution of Investment to GDP Growth

This refers to the substantial body of work carried out by Professor Ishaq Nadiri of New York University.  This is a statistical analysis of the relationship of businesses’ costs to investment in highways (technically, changes in the highway capital stock). In large measure, response of business costs to highway investment reflects improvement in the highways as freight carriers.  However, reduction in firms’ costs could also reflect an improvement in passenger travel on highways (by expanding the pool of potential employees). There is no way to separate the effects of passenger travel from the effects of freight carriage in this type of analysis.

1 Notable examples are the studies: Nadiri, M. Ishaq and Theofanis Mamuneas. “Contributions of Highway Capital to Industry and National Productivity Growth.” September 1996, Final Report. Prepared for FHWA. Nadiri, M. Ishaq. “Contribution of Highway Capital to Output and Productivity Growth in the U.S. Economy and Industries.” August 1998. Prepared for FHWA.

14

Document info
Document views303
Page views303
Page last viewedSat Dec 03 02:40:28 UTC 2016
Pages60
Paragraphs1285
Words17267

Comments