High-speed link between Rochester, Twin Cities could pay for itself, report claims  - Finance & Commerce

Finance and Commerce teases me: High-speed link between Rochester, Twin Cities could pay for itself, report claims  - Finance & Commerce:

"A high-speed rail line between Rochester and the Twin Cities would more than pay for itself with the extra economic benefits and tax dollars generated, according to a report released Monday by economic development officials in southern Minnesota. The report from Rochester Area Economic Development says a rail line would generate $27.54 billion in economic benefits, including ..."

Alas, I don't subscribe to Finance and Commerce, so I will have to make up the ellipsis

(1) $1 billion in added noise benefits. Since noise reduces property values, renters and new owners will be able to buy land for cheap.

(2) $10 billion in opportunity costs avoided. Since the HSR line will result in other bad construction projects avoided, and since we can't afford everything, there is clearly a benefit here.

(3) $5 billion in added profits for the operators of the line. The line will cost billions to operate over time, so that must be a benefit to those paid to operate it.

(4) $3 billion in construction benefits. We are paying people to build the line, they benefit. Therefore all construction costs are benefits.

(5) $9 billion in development. There will be new development in Rochester and the Twin Cities. All of that can be attributed to the HSR.

(6) $.5 billion. There will be development taking place in Rochester that would otherwise take place in Mankato. That is another benefit.

(7) $35 billion. The Mayo Clinic won't move to Phoenix.

Was I right?

David Levinson

Network Reliability in Practice

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This page contains a single entry by David Levinson published on March 26, 2012 2:23 PM.

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