Commercial Development at Rural and Small-Town Interstate Exits

Hartgen, D T; Kim, Ji Youn

doi:10.3141/1649-12

Cited by 8 publications

(5 citation statements)

References 2 publications

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“…Projects that improved road quality or the addition of a median were likely to yield minimal development impacts. Interstate highway interchanges give firms a more direct access to customer markets (6,111). The results also show that the cost of the project was not the most important factor in terms of economic benefits.…”

Section: Location Theory and Econometric Studiessupporting

confidence: 50%

Socioeconomic Forecasting

Xiong¹,

Fricker²,

McNamara³

2012

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JOINT TRANSPORTATION RESEARCH PROGRAMThe Joint Transportation Research Program serves as a vehicle for INDOT collaboration with higher education institutions and industry in Indiana to facilitate innovation that results in continuous improvement in the planning, design, construction, operation, management and economic efficiency of the Indiana transportation infrastructure. https://engineering.purdue.edu/JTRP/index_html Published reports of the Joint Transportation Research Program are available at: http://docs.lib.purdue.edu/jtrp/ NOTICEThe contents of this report reflect the views of the authors, who are responsible for the facts and the accuracy of the data presented herein. The contents do not necessarily reflect the official views and policies of the Indiana Department of Transportation or the Federal Highway Administration. The report does not constitute a standard, specification or regulation. AbstractThe role of the REMI Policy Insight+ model in socioeconomic forecasting and economic impact analysis of transportation projects was assessed. The REMI PI+ model is consistent with the state of the practice in forecasting and impact analysis. REMI PI+, like its competitors, is vulnerable to the trends contained in the historical data it uses, especially recent trends. After the most recent periodic update in data, the performance of the REMI PI+ model improved, that is, it produced long-term forecasts that were more credible. Zonal-level population and employment forecasts for direct input to the Indiana Statewide Travel Demand Model (ISTDM) can be achieved by applying disaggregation regression methods. Indiana University's Center for Econometric Model Research (CEMR) model is also a sound forecasting model. Because of the knowledge of in-state economists, the CEMR-IBRC model could provide forecasts of the Indiana economy that reflect characteristics not known to out-of-state forecasters. The researchers also examined economic impact analysis models that are possible alternatives to REMI PI+. Acquiring a new economic impact analysis package does not seem necessary for INDOT, if REMI forecasts can be adjusted to (a) accommodate recent and reasonable expected trends in the Indiana economy, and (b) meet the geographic (TAZ) needs of the ISTDM. MCIBAS-which is currently used by the Indiana Department of Transportation-is a good hybrid system to use in the economic impacts analysis of transportation projects. Indiana University's CEMR is capable of conducting economic impact analyses, with local knowledge of the Indiana economy, at a cost lower than REMI's. However, INDOT would have to decide whether these potential advantages justify changing the present relationship with REMI. In cases where the credibility of data, forecasts, and/or impact analyses needs to be verified, an Because the traffic forecasts produced by the Indiana Statewide Travel Demand Model (ISTDM) are driven by the demographic and socioeconomic inputs to the model, particular attention must be given to obtaining the most accurate demographic an...

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Section: Location Theory and Econometric Studiessupporting

confidence: 50%

Socioeconomic Forecasting

Xiong¹,

Fricker²,

McNamara³

2012

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“…Notably, people and firms locate to exploit the accessibility benefits created when freeways are upgraded. The consequences dot America's landscape: fast-food restaurants, gas stations, and other auto-oriented uses cluster around interchanges, warehouses align themselves along frontage roads, and new residential subdivisions spring up along connecting arterials (Hartgen and Kim, 1998;Hartgen and Curley, 1999).…”

Section: The Anatomy Of Induced Demandmentioning

confidence: 99%

Road Expansion, Urban Growth, and Induced Travel:A Path Analysis

Cervero¹

2003

Journal of the American Planning Association

229

129

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Claims that roadway investments spur new travel and thus fail to relieve traffic congestion, known as induced demand, have thwarted road development in both the United States and abroad. Most past studies point to a significant induced demand effect. This research challenges past results by employing a path model to causally sort out the links between freeway investments and traffic increases, using data for 24 California freeway projects across 15 years. Traffic increases are explained in terms of both faster travel speeds and land-use shifts that occur in response to adding freeway lanes. While the path model confirms the presence of induced travel in both the short-and longer-run, estimated elasticities are generally lower than those of earlier studies. This research also reveals significant "induced growth" and "induced investment" effects -real-estate development has gravitated to improved freeway corridors and road investments have been shaped by traffic trends in California. Fighting road projects on the grounds of induced-demand should be carefully considered. Energies might be better directed at curbing mis-pricing in the highway sector and managing land-use changes spawn by road investments. 1 Road Expansion, Urban Growth, and Induced Travel:A Path AnalysisFew issues in the urban transportation field have sparked as much controversy and threatened proposed road projects as claims of "induced demand". For decades, highway critics have charged that building new roads or expanding existing ones to relieve traffic congestion is a futile exercise. Improved roads simply spur additional travel or divert trips from parallel routes, quickly returning a facility to its original congested condition. Traffic is thought to behave more like a gas than a liquid -it expands to fill available space. Regional transportation plans, such as in the San Francisco Bay Area, have been mired in legal and political squabbles on the very grounds that they failed to account for the possibility that new roads might induce sprawl and the extra trips associated with it. Claims of induced demand have spawned such clichés as "build it and they will come" and "you can't pave our way out of traffic congestion".The preponderance of empirical evidence to date suggests that induced effects are substantial. A widely cited study by Hansen and Huang (1997), based on 18 years of data from 14 California metropolitan areas, found every 10 percent increase in lane miles was associated with a 9 percent increase in vehicle miles traveled (VMT) four years after road expansion, controlling for other factors. Another study of 70 U.S. metropolitan areas over a 15-year time period concluded that areas investing heavily in road capacity fared no better in easing traffic congestion than areas that did not (Surface Transportation Policy Project, 1998). Based on a meta-analysis of more than 100 road expansion projects in the United Kingdom, Goodwin (1996) found that proportional savings in travel time were matched by proportional increases in traf...

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“…This might have been anticipated since interstate highway interchanges provide access to a limited-access facility and it has been argued that they can generate economic benefits, in terms of commercial development growth (Hartgen and Kim, 1998) or earnings growth (Aldrich and Kusmin, 1997). On the other hand, the addition of medians has been shown to reduce delays and reduce accident rates relative to segments that do not utilize medians to control traffic flows (AASHTO, 2003), but these benefits might not be a measurable element of economic development potential that could lead to statewide long-term effects.…”

Section: New Road Median and Interchange Construction Projectsmentioning

confidence: 99%

“…Some creative work has been done in looking at spatial relationships among interchanges and with nearby cities/towns. Examples include Moon (1987), Hartgen and Kim (1998) and Aldrich and Kusmin (1997). In the latter study, it was found that access to interstate highway interchanges contributed to earnings growth in rural area; each interchange brought approximately 0.42 percent additional income growth during the period 1979-1989.…”

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confidence: 99%

Economic Development Effects of INDOT Transportation Projects

Gkritza¹,

Labi²,

Sinha³

2007

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Prepared in cooperation with the Indiana Department of Transportation and Federal Highway Administration. AbstractThe evaluation of transportation projects has traditionally been carried out in the context of economic efficiency, in terms of savings in travel time, vehicle operating cost, and safety. The wider and longer-term effects on economic development (i.e., job, income and business growth) are a concern of transportation planners and decision-makers but have been often overlooked due to the lack of a reliable impact estimation methodology and/or data. Information on economic development impacts is valuable for understanding the total effect of projects and therefore, for a more balanced justification of proposed transportation infrastructure investments. This study extends the traditional transportation impact framework by examining how different types of highway improvements that have been programmed for implementation in the State of Indiana can affect the state's economy, and how project-and location-specific factors interact to stimulate economic development. Temporal, spatial, and project characteristics are duly considered.The end product of this research is a quantitative tool that can be used at the project development phase by INDOT staff to estimate the economic development effects of different types of highway investments and make better decisions regarding highway investment. The study results provide a better understanding of the interrelationships among economic development, type of highway improvement and geographical location, and how investments in highway infrastructure can be ranked and prioritized based on sound economic development criteria. This study illustrates the types of data necessary to document these effects, and demonstrates how analysis can be carried out and ultimately improved. The study results can also assist INDOT to develop a quantitative approach to establish weights for the economic development criterion in a bid to rank and select projects based on their economic development potential and increase the efficiency of highway investment. Finally, the questionnaire survey targeted to transportation agencies and organizations across Indiana that have interests in economic development aspects could improve the understanding of economic development practices in the state. The survey results shed light into the circumstances under which economic developers and transportation agencies assess such effects, the measures that are or should typically be used, their associated weights, and the strategies/tools that are most often used. . Transportation planners and decision-makers have long shown concern about how transportation investments and services shape economic development. For large and more complex project in particular (and where the role of public participation is significant), information on the wider economic development impacts of transportation (e.g., changes in the regional industry, commerce, agriculture, and income, etc.) becomes valuable for measuring...

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Commercial Development at Rural and Small-Town Interstate Exits

Cited by 8 publications

References 2 publications

Socioeconomic Forecasting

Socioeconomic Forecasting

Road Expansion, Urban Growth, and Induced Travel:A Path Analysis

Economic Development Effects of INDOT Transportation Projects

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