Impacts of Toll Roads on the Regional Economy

This project summary report summarizes the research performed in Texas Department of Transportation (TxDOT) Project 0-5437. The purpose of this project was to examine and document the impacts of toll roads on the regional economy and to suggest the most effective ways for TxDOT to communicate those impacts to interested audiences. The scope of the research was the impact on the economy from local or regional highway projects that are funded using traditional toll financing. The research did not directly address the economic impacts of larger statewide projects such as the Trans-Texas Corridor or projects using toll equity or other forms of innovative financing. The research team conducted a literature search, collected data, interviewed stakeholders, and documented case studies. The research team also developed and conducted a workshop in August 2006 to present the research findings and to discuss ways for communicating the potential economic impacts of toll roads. The researchers found that toll projects are highly contextual. The economic impacts of any specific roadway must be considered in the context of local circumstances, facility design, attitudes of citizens, and the quality and capacity of local development agencies to address the demand created by the new roadway infrastructure. Case studies demonstrated that toll financing provides the opportunity to advance the schedule for a project that otherwise could be delayed for years or decades because financing from other sources of revenue such as motor fuel taxes is not available.