Report: alternative transportation provides economic benefits

Could save $350 billion/year

Steve Hawley, Feb 03, 09.

A new report released by the Victoria Transport Policy Institute indicates that alternative transportation provides significant economic benefits, while highway construction does not.

According to the summary, “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 quality) tends to reduce total motor vehicle traffic and associated costs, providing additional long-term economic savings and benefits.”

The report concludes, “A reasonable scenario of aggressive fuel economy targets, investments in alternative modes and supportive land use policies can reduce U.S. fuel consumption 20-40%, saving future consumers $150-350 billion annually in fuel and vehicle expenses, providing economic benefits from reduced fuel import costs of similar magnitude, producing additional economic, social and environmental benefits, and generating 1 to 2 million additional annual domestic jobs. This equals the total (not annual) jobs created by $30 to $60 billion of infrastructure expenditures and is five to ten times greater than the jobs provided by domestic vehicle manufactures. “

Report: Smart Transportation Economic Stimulation (pdf, 372 kb)