Wider Economic Impacts from Investing in Transportation Infrastructure: Theory, Measurement, and Practical Significance
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2024-05-07
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Corporate Contributors:United States. Department of Transportation. Federal Highway Administration ; United States. Department of Transportation. Federal Highway Administration. Office of Policy & Governmental Affairs ; United States. Department of Transportation. Federal Highway Administration. Office of Transportation Policy Studies
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Edition:Final Report
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Abstract:This report describes how investment in transportation infrastructure can generate economic costs or benefits that may not be captured in the conventional measures used for economic evaluation of proposed investments, and thus need to be measured separately and incorporated into such evaluations. It explains why and how such "wider economic impacts" can originate, identifies where they are likely to be significant, and outlines methods and tools that are available to estimate their economic value. Finally, it compares the advantages of incorporating wider economic impacts into benefit-cost analysis to relying on alternative evaluation methods, and outlines research that FHWA could pursue to improve economic of wider economic impacts.
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