The impact of public transport on the economy.
The impact of public transportation on the economy is far reaching. Via increases in employment, profit, income and tax revenues, money spent on public transport provides an enormous return on the initial investment. Studies show that every dollar spent on public transportation equals $4-$9 in economic stimulus. Here, we will discuss some of the ways that public transport benefits the economy.
Job creation: every $100M invested in the public transport system is responsible for the creation and support of almost four thousand jobs. According to Norman Mineta, director of the USDOT, every billion dollars spent on America's transport infrastructure is responsible for the upkeep of 47,500 jobs.
Capital invested in the mass transit system is a very significant source of new jobs; in the year following any such investment, over three hundred jobs are created for every ten million dollars invested. Spending on day to day transit operations is a direct infusion of cash into local economies- almost six hundred jobs are created for every ten million dollars in short-term investments.
Stimulation of development/redevelopment: The majority of new public transport lines are responsiblie for an average of $1B in new development within the first several years. In 2000, cities without rail service had an average downtown building vacancy rate of 12.8%, but those with rail only had a vacancy rate of 8%. Take Dallas, TX for an example: since 1999, areas near DART light-rail stations have had over three billion dollars in new development and redevelopment.
Boosts in business profits and revenues: Businesses often gain three times as much in sales as the public sector invested in public transit. In St. Louis, Missouri, the public transport system is projected to result in $2.3 billion in new business sales. Businesses near the abovementioned DART line have realized a 33% increase in sales in one year.
Increased property values and income: In America, properties within walking distance of a train station are selling for up to 25% more than a comparable property not within walking distance. In Dallas, TX, property values for residences near light rail stations increased by 39%, and office building values increased by 53%. In Chicago, IL, properties next to public transport stations had a 20% increase in value when compared to those just a half-mile away.
Increased state and local tax revenues: The average state/local government could gain 4-16% in revenues via the increased income and employment that come from investments in public transportation. Washington, DC's Metrorail system is projected to generate over two billion dollars in revenue for Virginia over the next three decades.
Enhanced productivity and lower costs: People living near metro areas with public transportation save over twenty billion dollars annually in transportation expenses. For every ten million dollars invested in public transportation, over fifteen million is saved in congestion, operating and fuel costs.
An efficiently-run public transportation system enhances people's access to job opportunities, increases productivity as a whole, saves people money, decreases air pollution and congestion, and allows for greater choice, mobility and economic freedom.