Evaluating the Private Sector Returns to Transportation Investments in Tennessee

Each year, Tennessee invests millions of dollars to design, construct, rehabilitate, and improve the state’s transportation infrastructure. The efficiency of these investments has resulted in exemplary system performance even while the required state resources have remained relatively small. Continued population growth and commercial developments, combined with scarce fiscal resources, require constant vigilance and precision in allocating always-scarce funds. Accordingly, the state is constantly seeking better ways to evaluate the potential benefits of future transportation expenditures. Calculating and interpreting geographically-specific returns-on-investment (ROI), is important to examine infrastructure investments to examine positive returns. Public sector transportation investments are generally made to facilitate or accommodate economic growth, while simultaneously assuring public safety, environmental stewardship, and social equity. This mix of goals means that calculating and interpreting transportation ROIs in Tennessee would necessarily require developing and analyzing ROI measures that reflect Tennessee-specific values. The proposed research has three objectives. These include: Study of the best practices developed by other state DOTs and the existing academic literature to (i) design a set of ROIs that reflect Tennessee values and objectives and (ii) identify factors affecting ROI; The empirical estimation of post project versus pre-project ROIs at the county level in Tennessee that capture various private sector returns attributable to transportation investments made during the past decade; and An analysis of the estimation results aimed at identifying the demographic, economic, and environmental factors associated with both well-performing and poorly-performing transportation infrastructure investments.

    Language

    • English

    Project

    • Status: Active
    • Funding: $100,000.00
    • Contract Numbers:

      40100-07219

      60676

      RES2020-01

    • Sponsor Organizations:

      Tennessee Department of Transportation

      James K. Polk Building
      Fifth and Deaderick Street
      Nashville, TN  United States  37243-0349
    • Managing Organizations:

      Tennessee Department of Transportation

      James K. Polk Building
      Fifth and Deaderick Street
      Nashville, TN  United States  37243-0349
    • Performing Organizations:

      University of Tennessee, Knoxville

      Knoxville, TN  United States 
    • Principal Investigators:

      Murray, Matthew

    • Start Date: 20190730
    • Expected Completion Date: 20201130
    • Actual Completion Date: 0
    • USDOT Program: Transportation, Planning, Research, and Development

    Subject/Index Terms

    Filing Info

    • Accession Number: 01743947
    • Record Type: Research project
    • Source Agency: Tennessee Department of Transportation
    • Contract Numbers: 40100-07219, 60676, RES2020-01
    • Files: RiP, STATEDOT
    • Created Date: Jun 24 2020 6:25PM