Cost–Benefit Analysis of Rural and Small Urban Transit in the United States

 

External link: http://trrjournalonline.trb.org/doi/10.3141/2533-16

Publication date: January 1, 2015

Capsule summary: This report provides a comprehensive cost-benefit analysis of transit systems in rural and small urban areas in the United States.

Author(s): Godavarthy, Ranjit Prasad; Ndembe, Elvis; Mattson, Jeremy

Publisher(s): TRB


Definition: Planning practices for pedestrians, bikes and transit
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Definitions: Passenger transportation services
Digest Search Results Page: https://www.planningdigest.com/mode/personal/transit/
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Definitions: The movement of people
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Definition: Article from an academic or professional journal
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Description: Transit systems in rural and small urban areas are frequently viewed as valuable community assets, in large part due to their ability to grant mobility to individuals who lack other means of transport. However, there has been little research into the impacts and values of these services. These systems have numerous known benefits, such as enabling their users to save money on transportation costs, take more trips, and avoid relocation. Using data from the National Transit Database (NTD), this study provides a comprehensive analysis of the costs and benefits of transit systems in rural and small urban areas, and these systems’ impacts on local, regional, and national scales.

Objectives: The four main objectives of this study are to: provide a review of previous research on cost-benefit analysis for rural and small urban transit; develop a framework for studying the economic benefits of rural transit, at the state, regional, and national levels; estimate the economic costs and benefits of rural and small urban transit; and to identify and describe the social, environmental, and other less-quantifiable benefits of such transit systems.

Findings: The benefits of rural/small city transit systems can be grouped into three broad categories: transportation cost savings, low-cost mobility benefits, and economic impacts. Under the umbrella of transportation cost savings, there were numerous additional benefits, including cost savings on vehicle ownership and operating expenses, taxi trips, travel time, and emissions. In 2011, rural transit had transportation cost savings and low-cost mobility benefits of $1.6 billion, and small urban area transit had such savings and mobility benefits of $3.7 billion. As such, rural transit and small urban area transit had cost-benefit ratios of 1.12 and 2.16, respectively. Additionally, this study found that for every $1 invested in public transportation resulted in $1.35 in output, $0.57 in value added, and $0.37 in earnings.

Recommendations: As the cost-benefit ratios for both types of transit are greater than one, the benefits provided by transit services in rural and small urban areas outweigh the costs. These transit systems are of vital importance to residents of these areas, particularly for residents making trips to access medical services. As such, the continued operation and funding of such systems should be made a priority by the municipalities who run them.

Research Theme: Planning for Pedestrians, Bikes, and Transit

Community Type: Rural

Transportation Mode: Personal, Transit

Planning Scope:

Organization Type:

Planning Subject: Analysis, Evaluation and Assessment