Completed Projects

UTCM

Estimating the economic impact of transportation improvements has previously proven to be a difficult task. There are various methods and models currently in use that all establish their own unique parameters but have no consistent standards or definitions in common with each other. There is a need to set standards for economic impact measurements and incorporate these measures into a refined and usable system.

This project examines the current and historical techniques utilized in transportation economic impact studies to determine how effective the available methods are and to develop a cohesive method that is both user-friendly and functional for various levels of analysis.

These results can be used to determine the economic effects of specific projects as well as educate the general public as to the impacts transportation improvements, or lack of improvements, have and will have on their community. The resulting economic impact model will allow decision-makers to see the effects transportation improvements have on the local market and enable them to make more informed choices.

2030 Committee

In 2008, Texas Transportation Commission Chair Deirdre Delisi appointed members of the original 2030 Committee. The initial charge of this committee made up of experienced and respected business leaders was to provide an independent, authoritative assessment of the state’s transportation infrastructure and mobility needs from 2009 to 2030. The report that emerged from the first 2030 Committee, entitled 2030 Committee Texas Transportation Needs Report, was released in February 2009 and can be found, along with its executive summary, on the Committee’s website: http://texas2030committee.tamu.edu.

In July 2010, Chair Delisi reconvened the 2030 Committee, which includes most of the original committee members, and charged it with developing a forecast for alternative levels of service for the four elements of the Texas transportation system—pavements, bridges, urban mobility and rural connectivity—along with analyzing potential sources of transportation revenue and determining the economic effects of under-investing in the system. The Committee provided guidance and direction to a team of transportation experts at the Texas A&M Transportation Institute (The Texas A&M University System); the Center for Transportation Research (The University of Texas at Austin); and The University of Texas at San Antonio. The current report, It’s About Time: Investing in Transportation to Keep Texas Economically Competitive, updates the February 2009 report by providing an enhanced analysis of the current and future state of the Texas transportation system.

Alternative Transportation Funding Scenarios and Their Impact on Delay

This document provides responses to questions posed by Representative Drew Darby, Chair of the House Subcommittee on Transportation Funding, a subcommittee of the House Select Committee on Transportation Funding, chaired by Representative Larry Phillips. The questions were regarding various alternative transportation funding scenarios and the effect of traffic congestion on consumer costs and the general economy.

Responses to Questions from the Texas House of Representatives Select Committee on Transportation Funding

Following testimony presented by Dr. David Ellis of the Texas A&M Transportation Institute (TTI) to the House Select Committee on Transportation Funding in April 2010, The Honorable Eddie Rodriguez, Vice Chair of the Committee, asked TTI in May 2010 to respond to a series of questions regarding transportation funding needs and impacts in Texas. This document provides responses to those questions based on the latest research that TTI has performed in these areas and the latest data available.

The vast majority of transportation economic analyses focus on the accumulated value of the benefits to a state or region from transportation investment. There are few studies, templates or models that delve into the specific issues raised by the Committee; that is, specific impacts on: jobs, business success and individual households. Of course, these are important building blocks in making informed decisions.

Absent traditional processes to guide this fundamental analysis, TTI has used a myriad of sources to assemble credible, meaningful responses to the critical questions posed by the Committee. This process has uncovered a shortcoming in tools available to legislators and transportation professionals in responding quickly to questions like these. TTI recommends identifying research funding to support the work of closing that gap in knowledge in order to better respond to both state leaders and the general public in the future.

Expert Testimony

Testimony at the Joint Committee Meeting of the Senate Finance Committee and the Senate Transportation and Homeland Security Committee on state population projections and the effect on vehicle miles traveled, projected fuel efficiencies, impact on fuel tax revenues, and construction commodity prices by Dr. David Ellis. — May 26, 2010

Cost of Delay

  • All departments of transportation (DOTs) face delays on highway projects. They often have anecdotal accounts of the significant financial impact that the delay of a highway project had on project costs, local businesses and commuters, and other users of the highway. But in many cases hard data on the financial impact are lacking. This project for the Texas Department of Transportation (TxDOT) aims to develop a simple but sound methodology for estimating the cost of delaying most types of highway projects.
  • http://tti.tamu.edu/conferences/tsc11/program/presentations/construction-2/ellis.pdf

Freight Shuttle System

In July 2011, researchers developed an economic sketch planning tool to determine the economic impacts associated with the Freight Shuttle System (FSS). TTI researchers first compiled a list of assumptions and estimates relevant for this analysis. The TTI FSS design team and other stakeholders helped the TTI economics research team develop a list of 47 assumptions concerning factors such as transporter construction cost, approximate transporter units constructed, and the location of each FSS component. TTI researchers then employed an economic model to help predict future economic benefits from the FSS project. An input-output (I/O) model is a quantitative technique that can be used to measure the economic impacts of large infrastructure investments. This model was used to help determine the economic impact associated with infrastructure investment. The 157-sector model was then used as a tool to generate direct employment, direct income, and final demand.

Transportation Funding Initiatives Pursued by all 50 U.S. States

In January 2012, TTI worked to provide a survey of recent initiatives pursued by other states. This analysis included both enacted and proposed (that is, not enacted) legislation pursued by other states within the past three years.

How Transportation is Paid For in Texas?

TTI worked to prepare a simple but relevant document explaining how transportation is paid for I Texas. This document is intended for transportation professionals, state policymakers, and the public. An online copy of this document will be posted at http://tti.tamu.edu/group/stsc/

Benefit-Cost Analysis

TTI finance researchers collaborated with the Center for Ports and Waterways to develop a TIGER benefit-cost analysis for two Texas ports. The formal benefit-cost analysis (BCA) was conducted using best practices in transportation planning and reflecting all TIGER IV grant application guidelines. To the maximum extent possible given available data, the formal BCA prepared in connection with this TIGER grant application reflects quantifiable economic and social benefits.