Data Needs & Gaps:Identifying & Communicating

the Economic Benefits of Transportation Investments

Glen Weisbrod Economic Development Research Group, Inc.

Presented at:TRB Joint Summer Meeting

July 11-12, 2011, Boston, MA

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Topics: Advancing Towards Realism

1.“RESTRUCTURING” • Evolution of Goals & Needs

2.DATA REQUIREMENTS• Clarifying Processes & Purposes

3.USE FOR POLICY & PLANNING• Communication for Involved Parties

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Maturing Infrastruct

ure

WHAT IS “RESTRUCTURING”

The federal transportation funding bill that Congress will soon be now considering?

The design of federal programs change over time?

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ISTEA TEA21 SAFETEA-LU ?

The underlying shift in our nation’s transportation requirements, priorities and plans?

Wider Benefits

Global Commer

ce

Multi- Modalis

m

Fed- State- Local Roles

Performance Metrics

Prioritization

Job & Income GoalsFinanci

ng Feasibil

ity

Match Cost

Burden to Beneficiar

y

Maximize Efficiency

Across Modes

Economic Goals & Needs > Criteria & Metrics

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Metrics

Efficiency & Cost Effectiveness

ROI – Return on Investment

VFM – Value for Money

PPP Public Private Partnership

Federal/State Responsibilities

DATA REQUIREMENTS > Driving Themes

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Federal Focus on National SignificanceDevelop National Freight Plan (bottlenecks)Streamline Programs, Add FlexibilityApply Econ Performance & B/C MeasuresEconomic Growth Objective

Support for Themes is Broad

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National Surface Trans Policy & Revenue Commission (2007)Bipartisan Policy Center on Transportation 2009-2010Proposed 2009 Surface Transportation Authorization ActProposed 2011 Transportation Opportunities ActProposed 2011 Freight ActProposed 2011 Am. Infrastructure Investment Fund Act

National Signif

Econ Growt

h

Freight Plan

Flexibility

(Discretionary)

Metrics

Nat. Policy Commission

X X X X X

Bipartisan Policy Ctr. X X2009 STAA X X X X X2011 TOA X X X X X2011 Freight Act X X2011 AIIFA XAASHTO X XAMPO X X

Translating Themes to Definitions (1)

National Economic Significance Interstate commerce Connecting cities (markets) Intermodal & port/gateway connectors

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Defining Metrics Interstate & inter-city volume International & inter-modal volume $ National GDP Contribution $ Value of movements

(at specific facilities, ports, gateways)

Translating Themes to Definitions (2)

Freight Plan Interstate freight movement routes Intermodal port/gateway access routes Connectors (Industrial links, port links, intermodal

and market access links)

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Defining Metrics Freight routes (by vehicle % or cargo volume) Non-local origin or destination High value of goods (per lb. or total) Capacity constraint, delay, variability

Translating Themes to Definitions (3)

Economic Benefit & Feasibility Value for Money (cost effectiveness) Societal Return on Investment (BCA) Income and job generation Public- private financing feasibility (revenue/cost)

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Metrics (drivers) Cost saving to facility operators + users GDP Contribution… built upon: Productivity from supply chain, access &

connectivity enhancement International competitiveness

Calculation inputs(Also tell the story)

Example: Interstate Connectivity

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Improvement in Access to Intermodal Rail (2035)

Improvement in Access to Marine Port (2035)

Improvement in Same Day Delivery Access (2035)

Access Enhancement and Economic Impact of Completing the Appalachian Development Highway System (ADHS)

Example: Regional AccessibilityEcon productivity from growth in effective market density (“agglomeration”); builds on GIS capabilities

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Labor Market - Chicago(40 min commute area)

Same Day Delivery Market – Portland , OR (3 hr. area)

Data to Support Transportation Programs

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Readily-available tools Commuting (Census JTW, LEHD) Flows (FHWA FAF) Deficiencies (HERS-ST) National networks (NavTeq, Cube, etc.) Accounting frameworks (NCFRP05) Econ models (Tredis, Inforum, Remi)

Application of Economic MetricsIdentify program benefit (avoided cost of inaction) Establish program eligibilityEnable ranking & prioritizationDetermine feasibility (cost, operation)

Calculation inputs(Also tell the story)

Match Econ Metrics to Planning Stage (fed, state & local)

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1 • Policy / Funding Stage

2 • Planning/Strategy Stage

3 • Programming Stage

4 • Prioritization Stage

5 • Project Devel./ EIS Stage

6 • Operations Stage

Ref: SHRP2 Collaborative Decision-Making Framework

COMMUNICATIONS

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Different Audiences, Objectives & Data NeedsLegislators, Administrators, Public• Assess Conceptual Proposals

--Key Stakeholders & Agency Staff• Assess Representative

Scenarios--

Agency Staff w/Public Oversight• Assess Packages of Projects

--• Assess Individual Projects

--

Public Hearings, Stakeholders, Agencies• Assess Project Alternatives

Conclusions Long-term march towards multi-modalism, flexibility and

accountability, recognizing societal goals. Data must support economic performance & impact

metrics …including job/ income growth and its drivers (e.g., access, connectivity & reliability).

At each stage, metrics must match to audiences & decisions, providing an understandable link to public goals. Thus, intermediate factors are important.

GIS, new datasets and tools are making these metrics feasible at a national level.

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Contact Info gweisbrod@edrgroup.com Library of articles www.edrgroup.com/library White paper on matching economic analysis to

different planning stages (send email)

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