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Value creation by transportation improvements

Empirical evidence has mounted about value created by transportation improvements, through increasing land or property price, enhancing business activities, or promoting economic development in general. The research priority today is not whether in some individual cases transportation creates value, but a synthesis or knowledge accumulation of "how?" -- under what circumstances would a type of transportation improvement create what level of value to whom, in what area, and in what time period?

For the purpose of value capture, we need a practical model to assess transportation value creation, which may include the following dimensions.

  • Type of transportation improvement: Are we talking about highway, transit, or streetcars? Does the improvement involve new station, new routes, or extended network?

  • Beneficiary: Who gets a major part of the value creation? Providers, developers, or land owners?

  • Area: Different types and level of value may be around transportation nodes, corridors, networks, or some specific areas measured by distance or time.

  • Time: Immediate value may be created right after transportation improvement, subsequent value may be realized when the enhance accessibility is fully recognized; induce value may be later created with successful high-density mixed-use development.

  • Circumstances: Value creation tends to be affected by many other factors, including market condition, regulation environment, current accessibility, development density, or topology, etc.

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