VERMONT        ®                   AGENCY OF TRANSPORTATION                                              Economic	Impact	o...
Meeting	Logistics  Streaming      The page contains a chat room (below the live         stream) which can be used to ask...
Study	PurposeTo estimate the annual economic impacts of bicycling and walking in Vermont. Business Environment Real est...
Vermont	Overview Population ~620,000 2009 GDP = $24.6B 2009 employment =   418,673 jobs 2009 labor earnings=   $16.6B ...
2010	Vermont	GDP	by	Private	Industry	Sector  Source: US Bureau of Economic Analysis                                       ...
Methodology    Bike/Ped Facility                                              Output   Capital Investment                 ...
Bicycle/Pedestrian	Infrastructure/Program	Investment 2009 VTrans data Dedicated B/P projects like   shared use paths, bi...
Bicycle/Pedestrian	Infrastructure/Program	Investment                                Results                               ...
Bicycle/Pedestrian‐Related	Businesses                                 Manufacturing                                 Reta...
Bicycle/Pedestrian‐Related	Businesses                                 Manufacturing                                 Reta...
Visitor	Spending 40 major events in 2009 Attracted over 16,000   participants  45,000 associated family   & friends Lo...
Visitor	Spending 40 major events in 2009 Attracted over 16,000   participants  45,000 associated family   & friends Lo...
State	Budget	Fiscal	Impact Effect of B/P activities on   state budget = $1.57M    $1.54M to General      Fund    $28,60...
State	Budget	Fiscal	Impact Effect of B/P activities on     FY 2009 state budget =   state budget = $1.57M            $4....
State	Budget	Fiscal	Impact Effect of B/P activities on     FY 2009 state budget =   state budget = $1.57M            $4....
Avoided	Transportation	System	Costs  Consumer: vehicle operating costs, depreciation, purchase price  Public: pollution,...
Avoided	Transportation	System	Costs  Obtained per mile unit costs for each variable          For example, consumer cost ...
Avoided	Transportation	System	Costs Transportation system cost savings: based on assumption   that all walking/biking tri...
Effect	of	Walkability on	Real	Estate Statistical model of all houses sold in VT, closing price,   walkability score, job ...
Results                                                              Output           Input                               ...
Results                                                                         Output           Input                    ...
Conclusions     Total Output = $82.7M                                     Bicycle/pedestrian                             ...
Conclusions $1M in infrastructure   spending generates   ~23 jobs $1M in program   spending generates   ~32 jobs  Bike/...
Conclusions Transportation system   cost savings estimates   require:– A better unit cost for   travel time– A better und...
Conclusions A methodology for rural   areas is needed to   improve the estimate of   walkability impacts to   property va...
Conclusions              Comment period ends         Thursday, March 29th, 2012         Comments can be sent to:          ...
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Economic Impact on Walking & Biking in Vermont

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Economic Impact on Walking & Biking in Vermont

  1. 1. VERMONT ® AGENCY OF TRANSPORTATION Economic Impact of Bicycling and Walking in Vermont Economic & Public MeetingEPR Policy Resources, Inc. March 15, 2012Economists, Policy and Financial Analysts via Vermont Interactive Technologies
  2. 2. Meeting Logistics  Streaming  The page contains a chat room (below the live  stream) which can be used to ask questions.   VIT sites  Brattleboro  Williston  Middlebury  Montpelier  Randolph Center  Newport   Rutland  Springfield  White River Junction 2
  3. 3. Study PurposeTo estimate the annual economic impacts of bicycling and walking in Vermont. Business Environment Real estate Health Transportation system 3
  4. 4. Vermont Overview Population ~620,000 2009 GDP = $24.6B 2009 employment =  418,673 jobs 2009 labor earnings=  $16.6B 4
  5. 5. 2010 Vermont GDP by Private Industry Sector Source: US Bureau of Economic Analysis 5
  6. 6. Methodology Bike/Ped Facility  Output Capital Investment Economic  Input/Output Model Visitor Spending  Jobs (REMI) Related to Bike/Ped Avoided  When Labor Earnings Appropriate Transportation  Consumer  Costs State Budget Fiscal  Avoided  Impact (VEGI) Transportation Public   Costs General Description  Other Costs and  Real Estate Value Benefits Input: Reliable Bike/Ped Related  Input: Reliability to be determined Businesses Output 6
  7. 7. Bicycle/Pedestrian Infrastructure/Program Investment 2009 VTrans data Dedicated B/P projects like  shared use paths, bicycle  lanes, etc.  Roadway projects that  impact B/P: bridge  sidewalks, shoulder  widening, etc. Program expenditures:  SRTS, Share the Road,  recreational trail guides,  etc. 7
  8. 8. Bicycle/Pedestrian Infrastructure/Program Investment Results  $17M output  233 jobs  $10M in labor earnings 8
  9. 9. Bicycle/Pedestrian‐Related Businesses  Manufacturing  Retail, including repair &  maintenance shops  Mountain biking &  hiking trail centers  Tour operators  Bike clubs, trail  associations, advocacy  groups 9
  10. 10. Bicycle/Pedestrian‐Related Businesses  Manufacturing  Retail, including repair &  maintenance shops  Mountain biking &  hiking trail centers  Tour operators  Bike clubs, trail  associations, advocacy  groupsOutput=$56M  Jobs=1,025 Labor earnings=$26M 10
  11. 11. Visitor Spending 40 major events in 2009 Attracted over 16,000  participants  45,000 associated family  & friends Lodging, retail, food, etc. Over 2/3 of spending  from out‐of‐state visitors 11
  12. 12. Visitor Spending 40 major events in 2009 Attracted over 16,000  participants  45,000 associated family  & friends Lodging, retail, food, etc. Over 2/3 of spending  from out‐of‐state visitorsOutput=$9.5M Jobs=160 Labor earnings=$4.7M 12
  13. 13. State Budget Fiscal Impact Effect of B/P activities on  state budget = $1.57M  $1.54M to General  Fund  $28,600 to  Transportation Fund 13
  14. 14. State Budget Fiscal Impact Effect of B/P activities on   FY 2009 state budget =  state budget = $1.57M $4.3B  $1.54M to General   $1.2B of which is  Fund General Fund  $28,600 to   $228M of which is  Transportation Fund Transportation Fund 14
  15. 15. State Budget Fiscal Impact Effect of B/P activities on   FY 2009 state budget =  state budget = $1.57M $4.3B  $1.54M to General   $1.2B of which is  Fund General Fund  $28,600 to   $228M of which is  Transportation Fund Transportation Fund  0.04% of state budget  0.13% of General Fund  0.01% of Transportation Fund 15
  16. 16. Avoided Transportation System Costs  Consumer: vehicle operating costs, depreciation, purchase price  Public: pollution, water quality, noise impacts, parking, health  Methodology:  1. Estimate amount of annual walking & biking in VT. 2009 National Household Travel Survey: – Miles walked in VT ~68,000,000 (average) – Miles biked in VT ~28,000,000 (average) 2. Calculate cost savings due to walking or biking instead  of driving. 16
  17. 17. Avoided Transportation System Costs  Obtained per mile unit costs for each variable   For example, consumer cost of vehicle ownership  per mile, public cost of air pollution per mile traveled  Applied unit costs (step 2) to miles traveled (step 1) Avoided Auto  Added Biking  Added Walking Area Net Change Travel Costs Associated Costs Associated CostsUrban $      (53,577,546) $           4,295,967 $        22,914,907 $       (26,366,672)Rural $      (52,655,360) $           7,281,010 $        37,304,476 $         (8,069,874)Total $     (106,232,906) $          11,576,977 $        60,219,383 $       (34,436,546) 17
  18. 18. Avoided Transportation System Costs Transportation system cost savings: based on assumption  that all walking/biking trips replace automobile trips  However, trip might not happen if mode is unavailable   reduced accessibility.   Assumes trip distance is equivalent regardless of mode.  Travel time unit cost for auto does not include time for  parking and walking to destination. 18
  19. 19. Effect of Walkability on Real Estate Statistical model of all houses sold in VT, closing price,  walkability score, job density & median household income Estimated effect of walkability score on property value where  job density is greater than 110 jobs/sq.mi. (urban): Results for rural areas determined to be unreliable Preliminary estimate of walkability impact on property in VT  is $350M  19
  20. 20. Results Output Input (results for one typical year) Bike/Ped Facility  Jobs Capital Investment Economic  Bike/Ped Related  Input/Output Model Labor Earnings Businesses (REMI) Visitor Spending  Output Related to Bike/Ped Considered but not  included in model State Budget  Avoided Transportation  Fiscal Impact Consumer  Costs Avoided Transportation  Public  Costs Real Estate Value 20
  21. 21. Results Output Input (results for one typical year) Bike/Ped Facility  Jobs Capital Investment 1,418 Economic  Labor Earnings Bike/Ped Related  Input/Output Model $41M Businesses (REMI) Output Visitor Spending  $83M Related to Bike/Ped Considered but not  State Budget  included in model Fiscal Impact  Avoided Transportation  $1.6M $43M Consumer  Costs Avoided Transportation  $42M Public  Costs Real Estate Value $350M 21
  22. 22. Conclusions Total Output = $82.7M  Bicycle/pedestrian  oriented activities  contribute less than  Infrastructure  expenditures  1% to the state’s  $15.334M Program  economy. expenditures  $1.622M  Avoided  Events  $9.476M Transportation  Businesses  System Costs: $84M $56.312M  Real Estate Impact:  $350M 22
  23. 23. Conclusions $1M in infrastructure  spending generates  ~23 jobs $1M in program  spending generates  ~32 jobs  Bike/ped businesses  are very seasonal Bike/ped tourism  represents <1% of  total visitor  expenditures in VT Photo: Local Motion 23
  24. 24. Conclusions Transportation system  cost savings estimates  require:– A better unit cost for  travel time– A better understanding  of how car trips are  replaced by bike/walk  trips (distance and ratio) 24
  25. 25. Conclusions A methodology for rural  areas is needed to  improve the estimate of  walkability impacts to  property values. Future research could  consider the impact on  wealth effects. Photo: Local Motion 25
  26. 26. Conclusions Comment period ends  Thursday, March 29th, 2012 Comments can be sent to:  vteconbp@rsginc.com 26

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