Investing in Public Transport
“Investment in public transportation expands service and improves mobility, and, if sustained over time, can potentially affect the economy by providing:
• travel and vehicle ownership cost savings for public transportation passengers and those switching from automobiles, leading to shifts in consumer spending;
• reduced traffic congestion for those travelling by automobile and truck, leading to further direct travel cost savings for businesses and households;
• business operating cost savings associated with worker wage and reliability effects of reduced congestion;
• business productivity gained from access to broader labour markets with more diverse skills, enabled by reduced traffic congestion and expanded transit service areas; and
• additional regional business growth enabled by indirect impacts of business growth on supplies and induced impacts on spending of worker wages. At a national level, cost savings and other productivity impacts can affect competitiveness in international markets. …
“The analysis shows that public transportation investment can have significant impacts on the economy, and thus represent an important public policy consideration. However, economic impacts should not be equated with the value of total societal benefits associated with public transportation investment. Care should also be taken to recognize the short-term effect of public transportation spending as well as the longer-term benefits of sustained transportation investment on travel times, costs and economic productivity. Both may be useful considerations for public information and investment decisions.”
Ref: American Public Transport Association, October 2009 See full report here
“Investment in public transportation expands service and improves mobility, and, if sustained over time, can potentially affect the economy by providing:
• travel and vehicle ownership cost savings for public transportation passengers and those switching from automobiles, leading to shifts in consumer spending;
• reduced traffic congestion for those travelling by automobile and truck, leading to further direct travel cost savings for businesses and households;
• business operating cost savings associated with worker wage and reliability effects of reduced congestion;
• business productivity gained from access to broader labour markets with more diverse skills, enabled by reduced traffic congestion and expanded transit service areas; and
• additional regional business growth enabled by indirect impacts of business growth on supplies and induced impacts on spending of worker wages. At a national level, cost savings and other productivity impacts can affect competitiveness in international markets. …
“The analysis shows that public transportation investment can have significant impacts on the economy, and thus represent an important public policy consideration. However, economic impacts should not be equated with the value of total societal benefits associated with public transportation investment. Care should also be taken to recognize the short-term effect of public transportation spending as well as the longer-term benefits of sustained transportation investment on travel times, costs and economic productivity. Both may be useful considerations for public information and investment decisions.”
Ref: American Public Transport Association, October 2009 See full report here
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