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Design Considerations for a 21st Century Ground Transportation System Based on Value-Capture Financing

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  • Mark A. Stull

Abstract

Numerous studies have demonstrated that transportation systems raise property values and stimulate economic growth, and it has been proposed that some of this value enhancement might be captured to finance their construction and/or operation. However, other studies suggests that recently constructed urban rail systems have had only marginal economic impact, implying that mass transit investments may not create significant value-capture potential. Census data suggests an explanation for this discrepancy, specifically, that transportation systems elevate property values and income levels in a given location by increasing the number of people who have access to that location. To generate more than a marginal economic effect, a transportation system should represent a quantum leap over the accessibility provided by the existing network. Accessibility, as well as ridership, depend upon capacity and load factor, which can be affected by fare structure, system design and choice of transportation technology. Capacity and load factor are increased by high-speed, high-acceleration systems based on small vehicles, short headways, central control, dynamic scheduling, and off-line stations. As a result, electromagnetic propulsion with a linear motor has, by far, the greatest value-capture potential of any ground transportation technology.

Suggested Citation

  • Mark A. Stull, 2008. "Design Considerations for a 21st Century Ground Transportation System Based on Value-Capture Financing," Transportation Planning and Technology, Taylor & Francis Journals, vol. 31(3), pages 249-275, January.
    • Handle: RePEc:taf:transp:v:31:y:2008:i:3:p:249-275
    DOI: 10.1080/03081060802086330
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    1. Jeffery J. Smith & Thomas A. Gihring, 2006. "Financing Transit Systems Through Value Capture," American Journal of Economics and Sociology, Wiley Blackwell, vol. 65(3), pages 751-786, July.
    2. Landis, John & Guhathakurta, Subhrajit & Huang, William & Zhang, Ming, 1995. "Rail Transit Investments, Real Estate Values, and Land Use Change: A Comparative Analysis of Five California Rail Transit Systems," University of California Transportation Center, Working Papers qt2hf9s9sr, University of California Transportation Center.
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