March 16th, 2011
ECONOMICS OF CONSTRUCTIONOptimize Mobility, by Catherine Higgins.
- Do road improvement projects help the local economy?
UDOT has asked experts to study the complicated relationship between the local economy and transportation projects.
To find answers about how construction impacts local businesses, a team of BYU researchers reviewed other studies, identified key indicators of economic activity, established statewide norms for each indicator and collected and analysed data from local areas.
Three indicators — sales tax revenue, VMT, and employment — were identified. Data reflecting each indicator was collected from the vicinity of construction projects three years before and after construction. Local data was compared to statewide growth rates.
The study adds to the body of knowledge about how transportation projects can help the local economy, but more study is needed.
The study, “Understanding the Economics of Transportation in Utah” is posted on the UDOT website.
Read a newsletter article by UDOT Planning Director John Thomas.