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UP 430CEE417 Week 4

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Limited Oil Resource: An Example. 2. Price Impact: Elasticity. p. q. 1.0. 0.5. 100. 200 ... Wrestling With Land Use and Transportation ... – PowerPoint PPT presentation

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Title: UP 430CEE417 Week 4


1
UP 430/CEE417 Week 4
  • Transportation Impacts

2
Transportation Impacts
  • I. Transportation Impacts due to Price Change
  • 1. Limited Resources
  • 2. Price Impact Elasticity
  • II. Impacts Analysis
  • 3. Braess Paradox
  • 4. Land Use and Transportation
  • III. Transportation and Air Quality
  • 5. CAAA of 1990 Impact Measurements
  • IV. ISTEA/TEA-21
  • V. SAFETEA-LU
  • VI. Environment Impact Statement
  • VII. Episodic Transportation Controls for AQ

3
1. Limited Oil Resource An Example
  • Proven Reserve 1,100 bb (2007)
  • Annual Demand 30 bb (2007)
  • Demand Increase 1.36 per year (2004-2030)
  • D(n) 1.0136 D(n-1)
  • By the year 200762 i.e. By 2069,
  • Reserve 0

4
2. Price Impact Elasticity
-100/(-0.5)x(10.5)/2/(100200)/21
p
1.0
0.5
q
100
200
Unitary elastic
5
Price Impact Elasticity
-50/(-0.5)x(10.5)/2/(100150)/20.6
p
Inelastic example Work 0.09 Shopping 0.323
1.0
0.5
q
100
150
6
Price Impact Elasticity
elastic
-200/(-0.5)x(10.5)/2/(100300)/21.25
p
1.0
0.5
q
100
300
200
7
Elasticity
p1
p2
q1
q2
8
Elasticity An Example
  • Elasticity of Transit Demand with respect to
    Transit Fare
  • Work 0.09
  • Shopping 3.323
  • Elasticity of Automobile Trip Demand with
    respect to Gasoline Price
  • Work ?
  • Shopping ?

9
Elasticity An Example (2)
  • Regression Results
  • USA
  • ?n (VMT) -5.45161.6358 ?n (population)-
    0.1558 ?n (price)
  • (-2.16) (8.35) (-5.22)
  • Adjusted R² .9633 Price Elasticity at the
    Mean -0.1558
  • State of Illinois
  • ?n (VMT) -36.84310.309 ?n (population)-
    0.1012 ?n (price)
  • (-10.754) (12.365) (-4.466)
  • Adjusted R² .9927 Price Elasticity at the
    Mean -0.1012
  • The Chicago Region
  • ?n (VMT) 1.341 ?n (population)- 0.2791 ?n
    (price)
  • (90.04) (-10.146)
  • Adjusted R² .9604 Price Elasticity at the
    Mean -0.2791

10
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11

Annual per-capita fuel consumption (MJ)
Fuel price (US cents per litre)
Source Newman Kenworthy, 1989
12
Transportation Impacts
  • I. Transportation Impacts due to Price Change
  • 1. Limited Resources
  • 2. Price Impact Elasticity
  • II. Impacts Analysis
  • 3. Braess Paradox
  • 4. Land Use and Transportation
  • III. Transportation and Air Quality
  • 5. CAAA of 1990 Impact Measurements
  • IV. ISTEA/TEA-21
  • V. SAFETEA-LU
  • VI. Environment Impact Statement
  • VII. Episodic Transportation Controls for AQ

13
3. Braess Paradox
1. The time it takes a car to travel each road
here is related to the number of other cars on
the road, written in the equations next to the
road as F. One car will take (10x1)(151)61
minutes, no matter which route it takes.
14
3. Braess Paradox
2. Adding an extra expressway going from the west
side to the east side across the park shorten the
trip for one car. That car can now make the
journey from downtown to uptown in (10x1)
(110) (10x1) 31 minutes.
15
3. Braess Paradox
3. With six cars going from downtown to uptown,
and no Cross Park Expressway, the commute is
slower. The best drivers can do in (10x3)
(350) 83. No one can switch routes without
making the trip even longer.
16
3. Braess Paradox
4. But adding that expressway just makes matters
worse. With six cars taking each of the three
available routes, the former shortcut takes
(10x4) (210) (10x4) 92 minutes-longer than
it did before the expressway existed.
17
Hottelings Location Game
2 mile long beach
A
B
Initial Stage
B
A
2nd Stage
A
B
Market Solution
A
B
Planning Solution
18
A Typical Development Pattern of an Urban Area
Sub-Ctr
Sub-Ctr
W/R
W/R
CBD
R
W/R
R
Raw Materials
R
Manuf.
Manuf.
Manuf.
W/R
Manuf.
R
R
Sub-Ctr
19
Urban Land Model Sociologists ViewConcentric
Zone by Burgess and Parker
Service
Whole/Retail
Housing
20
Transportation in an Agricultural Land Rent Model
?(d) pA - w - tAd
?(d)
?(d) Land Rent at d distance from Market
Bean
P Unit Price of Ag Products, if 100
w Labor wages, if 50
t Unit Transportation Cost, if 0.1
Bean at 5 mi, ?(5) 100-50-2525, if p1
at 10 mi, ?(10) 100-50-500, if p1
?(5)
Corn
?(10)
5 mi
10 mi
d
Market
21
Transportation in an Urban Land Rent Model
R(d)
Rent (d)Rev - t.cost - other costs R(d) pA -
tAd- w
Service
Whole Sale
Manufacturing
Residential
d
CBD
Whole Sale zone
Residential zone
Service zone
Manufacturing zone
22
Land Use - Transportation Cycle
Land Use
Trips
Land Value
Transport Needs
T. Facility
Accessibility
23
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24
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25
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26
Land-Use Impacts on Transport (2)
Annual per-capita fuel consumption (MJ)
Net density (residents per hectare)
Source Newman Kenworthy, 1989
27
New and Old Ideas Transit-Oriented Development
(TOD) - Light-Rail-Transit (LRT) - Bus feeder
network - Concentration of jobs, services and
residences at transit stops - Mixed-use
centers - Urban TODs - Neighborhood TODs
28
New and Old Ideas Smart Growth - Urban growth
boundaries - Parks and open spaces - Transit-orien
ted development (TOD) - "Highway-Dollars" for
walking and cycling - Taxation of sprawl - User
fees for new infrastructure - Urban
renewal - Ecological reservations Source Sierra
Club (2001)
29
New and Old Ideas New Urbanism - Regional
co-operation - Polycentric articulated
settlements - Rural-urban linkages - Infill
development - New towns and villages - Historical
heritage - Economic and social diversity -
Regional revenue sharing ... Source Charter of
the New Urbanism (2000)
30
Portland Regional Growth Concept 2040 The
elements transit-oriented development, urban
growth boundary and landscape protection.
31
Portland Regional Growth Concept
2040 Hierarchical settlement structure Regional
Centers, Town Centers und Village/TOD Centers.
32
Portland Regional City In 1979, Portland Metro
was established by popular vote. Metro comprises
parts of three counties with 24 municipalities
and 1.3 million people. The main responsibility
of Metro is regional land-use and transport
planning.
33
Portland Orenco Town Centre
34
An Important Debate Opponents of the New
Urbanism claim that - urban growth boundaries
increase land and house prices and distort the
evolution of regional settlement hierarchies, -
urban rail developments distract money more
effectively spent on buses and run counter to
prevailing settlement trends. - commuting
distances in US cities have declined due to
decentralisation of jobs and hence automobility
is sustainable. Source Richardson Gordon
(2000), Rubin et al. (1999)
35
Transportation Impacts
  • I. Transportation Impacts due to Price Change
  • 1. Limited Resources
  • 2. Price Impact Elasticity
  • II. Impacts Analysis
  • 3. Braess Paradox
  • 4. Land Use and Transportation
  • III. Transportation and Air Quality
  • 5. CAAA of 1990 Impact Measurements
  • IV. ISTEA/TEA-21
  • V. FAFETY-LU
  • VI. Environment Impact Statement
  • VII. Episodic Transportation Controls for AQ

36
Transportation System Impacts with particular
aspect on Air Quality
  • Transportation system impacts cover a broad
    spectrum, all the way from the destruction of
    historic landmarks to the economic development of
    the entire urban area. We will consider the
    specific matters of energy consumption, air
    pollution, noise, land values and visual impacts.
    Particular attention will be given to the
    impacts of the 1990 Clean Air Act Amendment
    (CAAA) and its mandates on emission reduction.

37
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38
CAAA of 1990
  • Most Significant Feature
  • Compliance Requirements for Urban Areas that did
    not meet the National Ambient Air Quality
    Standards (NAAQS).
  • CAAA of 1977
  • Nationwide Mandate to meet a 1987 Deadline for
    Attainment of the NAAQS.
  • 1987 96 Areas of Ozone (O3) Standard Violations
  • 41 Areas of CO Standard Violations
  • 58 Areas of PM-10 Standard Violations
  • CAAA of 1990
  • 6 Classifications for Ozone Nonattainment Areas
  • Marginal..Moderate, Serious, Severe,
    Extreme

39
CAAA of 1990
  • Volatile Organic Compounds (VOC) in Urban Areas
  • Mobile Sources comprise up to
  • 50 of NOx
  • 80 - 90 of CO
  • 40 - 50 of HC, and
  • NOx combined with HC form O3
  • CAAA of 1990 mandates implementation of
  • Transportation Control Measures (TCMs)
  • Alternative Fuel Programs, e.g. Reformulated
    Gasoline
  • California Air Resources Board (CARB)
  • From Low Emission Vehicles (LEVs) to ZEVs.
  • From 1988, 3,750 Electric Cars to be sold by
    Carmakers Annually by 2003,
  • By 2003, 10 of carmakers sale to be ZEVs

40
REQUIREMENT OF THE 1990 CAA
MPOS FOR SERIOUS, SEVERE, EXTREME
OZONE NON-ATTAINMENT AREA USE OF NETWORK
MODEL MPOS FOR SERIOUS OR WORSE CO
NON-ATTAINMENT AREAS USE OF NETWORK BASED MODEL
41
Transportation Impacts
  • I. Transportation Impacts due to Price Change
  • 1. Limited Resources
  • 2. Price Impact Elasticity
  • II. Impacts Analysis
  • 3. Braess Paradox
  • 4. Land Use and Transportation
  • III. Transportation and Air Quality
  • 5. CAAA of 1990 Impact Measurements
  • IV. ISTEA/TEA-21
  • V. SAFETEA-LU
  • VI. Environment Impact Statement
  • VII. Episodic Transportation Controls for AQ

42
TEA-21 (1)
  • On June 9, 1998, President Clinton signed into
    law a new federal transportation bill called
    TEA-21, The Transportation Equity Act for the
    21st Century.
  • It is in every sense a direct successor to the
    1991 Intermodal Surface Transportation Efficiency
    ActISTEA.
  • In spite of TEA-21's complexity and the many
    disagreements it provoked during almost two years
    of debate, this new law both leaves the
    groundbreaking reforms of ISTEA intact and
    provides new opportunities for innovation.
  • Now that TEA-21 is here, the transformation of
    our 1950s-era highway building program into a
    flexible transportation program achieved in 1991
    can no longer be called an aberration.
  • ISTEA was created by a Democratic Congress
    dominated by Northeasterners and a Republican
    President, and its reforms have been continued by
    a Republican Congress led by Southerners and a
    Democratic President. ISTEA, and all it
    represents, is here to stay.

43
TEA-21 (2)
  • TEA-21 authorizes 217 billion in funding over
    six years, 40 percent more than ISTEA.
  • Actual funding flowing to the states is unlikely
    to go up by 40 percent. In most states funding
    will be higher, but the difference will be
    incremental rather that revolutionary.
  • The amount of highway money available in future
    years will depend on how much money flows into
    the Highway Trust Fund.
  • TEA-21 creates some new tools for using
    transportation to revitalize communities and
    create alternatives to driving.

44
TEA-21 Funding
  • Category Total 6-year funding (billions)
  • 1. Total Amount Authorized 216.3
  • Total Amount Authorized, Highways 173.1
  • Total Amount Authorized, Transit 41.0
  • 2. Total Contract Authority 209.3
  • Total Contract Authority, Highways 171.7
  • Total Contract Authority, Transit 36.0
  • 3. Total Amount Guaranteed 198.7
  • Total Amount Guaranteed, Highways 162.7
  • Total Amount Guaranteed, Transit 36.0

45
New Rules for the Federal Budget
  • The budget rules that apply to transportation
    have changed. Cuts in transportation spending can
    no longer be used to boost spending on other
    programs.
  • Highway spending can exceed the "guaranteed"
    floor if revenue flowing to the highway trust
    fund exceeds expectations, or if Congress
    appropriates "non-guaranteed" funds . This means
    that state-by-state funding projections are only
    estimates, and actual amounts may differ from
    initial projections.
  • The funding guarantee for transit is set at a
    fixed amount of 36.0 billion, and will not vary
    over time as revenues rise and fall.

46
Job Access--Helping People Get to Jobs using
Transit
  • As jobs have moved to the suburbs, many
    low-income city residents have no reasonable way
    to get to these jobs.
  • TEA-21's Access To Jobs program will provide
    discretionary grants to transit service providers
    to help bridge this gap.
  • Some funds are set aside for "reverse commute"
    projects. There is no requirement that these
    funds be targeted to low-income individuals.
  • Not all of the program's funding is guaranteed
    250 million of the 750 million authorization
    must be fought for.
  • TEA-21 Reference Section 3037.
  • TEA-21 creates some new tools for using
    transportation to revitalize communities and
    create alternatives to driving. This chapter
    reviews the most important of these new
    opportunities.

47
Taxes and Commuter Choice
  • Through changes in federal tax law, employers are
    now free to offer a range of commute fringe
    benefits without fear of tax consequences.
  • These benefits can either be offered in addition
    to an employee's base salary, or the employer can
    offer the benefit "in lieu of compensation."
  • Providing a portion of an employee's income in
    the form of a transit voucher cuts taxes for both
    the employer (less FICA tax) and the employee
    (less income tax).
  • Commuters will not benefit from the new rules
    until employers know about them and begin
    offering a choice of fringe benefits. Making
    employers aware of the new rules is the most
    important action people can take to make
    "commuter choice" a reality.
  • TEA-21 ReferenceSection 9010.

48
Wrestling With Land Use and Transportation
  • Building a transportation system that provides
    for economic growth, preserves quality of life,
    and minimizes environmental impacts will require
    strong coordination between land use and
    transportation decisions.
  • The TCSP program, authorized at 120 million over
    six years, will fund projects that link
    transportation and land use decisions with
    community quality of life.
  • The program contains a strong bias toward project
    teams that include non-traditional partners like
    community groups, non-profit organizations and
    business groups.
  • FHWA has placed implementation guidance and a
    request for letters of intent from potential
    grantees for TEA-21's Transportation and
    Community and System Preservation Pilot Program
    (TCSP). 
  • TEA-21 Reference Section 1221.

49
Building New Rail Systems (1)
  • Many fast growing cities are realizing that rail
    transit has much to offer. As a result, demand
    for New Starts funding has exploded since ISTEA.
  • Although a majority of New Starts money falls
    within TEA-21's funding guarantee, some does not.
    Full funding will only be achieved if supporters
    of new start projects push for it.
  • The best new start projects integrate the transit
    system with transit-supportive land use. This
    attracts economic development, boosts ridership
    and builds better communities.
  • TEA-21 Reference Sections 3009 and 3030.

50
Building New Rail Systems (2)
  • Transit is being considered in some unlikely
    places. Cities where new rail investments have
    been authorized in TEA-21 include
  • Albuquerque, New Mexico Atlanta, GeorgiaAustin,
    Texas Charlotte, North CarolinaDallas,
    Texas Denver, ColoradoFt. Laud/W. P. Beach,
    FL
  • Galveston, Texas Kansas City, KN/MOLas Vegas,
    Nevada Little Rock, ArkansasLouisville,
    Kentucky Miami, FloridaMemphis,
    Tennessee Nashville, TennesseeNorfolk/Va Beach,
    VA Orlando, FloridaPhoenix, Arizona Raleigh/Durh
    am, NCSacramento, California San Jose,
    CaliforniaStockton, California Tampa Bay,
    FloridaMinneapolis/St. Paul, MN Spokane,
    Washington

51
Bikes Belong!
  • ISTEA required the consideration of bicycling and
    walking as transportation plans are assembled,
    and slowly this has begun to happen. TEA-21
    continues and expands these requirements.
  • TEA-21 continues ISTEA's policy innovations and
    increases funding for the CMAQ and Transportation
    Enhancements programs, which fund most bicycle
    and pedestrian projects.
  • New provisionssuch as eligibility for safety
    funds and development of design guidancewill
    help ensure that the needs of bicyclists and
    pedestrians are addressed.
  • TEA-21 References Sections 1202, 1203, 1204, and
    1401.

52
More Toll Roads Or Better Leverage for Transit
  • The innovative finance programs represent a lot
    of moneytoo much to ignore.
  • Applicability to mass transit could open doors.
    For example, a transit agency that wants to
    extend rail service could pledge revenues from
    selling pre-paid transit passes to repay debt
    undertaken to build a line extension.
  • TEA-21's innovative finance programs are very
    flexiblethe lines of credit or secured loans can
    be used for a wide variety of purposes.
  • Like all loans, the money must be repaid.
  • TEA-21 Reference Sections 1501 through 1511.

53
Clean Fuels for Transit
  • In many areas, emissions from diesel engines are
    becoming a larger piece of the overall pollution
    problem. The clean fuels grant program provides
    an opportunity to start reducing pollution from
    the transit bus fleet.
  • Only one-half of the 200 million per year
    authorized for this program is guaranteed. The
    remainder must compete for funding in the annual
    appropriations process.
  • Only those who apply can receive funds.
  • TEA-21 Reference Section 3007.

54
The New MoneyA Recipe for Sprawl or a Chance
for Wise Investment?
  • TEA-21 represents a large increase in federal
    funds for transportation.
  • In general, areas with high population and
    economic growth will receive the most new money,
    and this money may end up fueling more sprawl.
  • Under ISTEA, the share of federal funds going to
    new roads began to decline, and this trend can
    continue. Most of the new money provided by
    TEA-21 will go into categories that cannot fund
    new roads.

55
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56
Funding Indicators ISTEA vs TEA-21
57
CMAQ Dollars in Billion
CMAQ Congestion Mitigation and Air Quality
Program
58
Some notable changes in funding emphasis in TEA-21
  • A 54 percent decrease in the share of total
    funding dedicated to the construction of new
    highways, from 8.2 percent of total funds to 3.7
    percent.
  • A modest increase in the portion of funding
    devoted to repair and preservation of the
    existing road system, from 23.8 percent of total
    funding to 24.9 percent.
  • A slight increase in the share of total funds
    likely to go to transit.
  • http//www.istea.org/guide/sm.htm

59
Planning Is Still A Powerful Tool
  • TEA- 21 introduces comprehensive, integrated
    planning goals, rather than the more specific
    planning factors of ISTEA.
  • Accountability, local control, and fiscal
    constraint remain, and are still excellent tools.
  • Current MIS requirements apply until new
    regulations are issued by USDOT. The integration
    of MIS requirements with planning and NEPA, if
    done properly, will preserve the strengths of MIS
    process substantive analysis of alternatives to
    major transportation investments early in the
    process.
  • TEA-21 Reference
  • Sections 1203, 1204, and 1308.

60
Transportation Impacts
  • I. Transportation Impacts due to Price Change
  • 1. Limited Resources
  • 2. Price Impact Elasticity
  • II. Impacts Analysis
  • 3. Braess Paradox
  • 4. Land Use and Transportation
  • III. Transportation and Air Quality
  • 5. CAAA of 1990 Impact Measurements
  • IV. ISTEA/TEA-21
  • V. SAFETEA-LU
  • VI. Environment Impact Statement
  • VII. Episodic Transportation Controls for AQ

61
SAFETEA - LU
  • Safe Accountable, Flexible, Efficient
    Transportation Equity Act A Legacy for Users
  • Authorizes the Federal Surface transportation
    Programs for highways, highway safety, and
    transit for the 5-year period 2005 2009
  • Highway (New Core Imperovment Program HSIP)
  • SAFETEA-LU Doubles TEA-21 Safety Apportionment
  • Strategic Highway Safety Plans
  • Set asides
  • Reporting

62
SAFETEA - LU
  • Highway Safety Improvement Program (HSIP)
  • New Core Program
  • 5.06 Billion over 4 years (FY06 FY09)
  • FY 2006 1,236 M
  • FY 2007 1,256 M
  • FY 2008 1,276 M
  • FY 2009 1,296 M
  • Set Asides
  • Railway Highway Crossings - 220 Million/Year
  • High Risk Rural Roads - 90 Million/Year

63
Pedestrian and BicycleImprovements
  • Construct improvements that enhance pedestrian or
    bicyclist safety or safety of the disabled
  • Construct a traffic calming feature
  • Install and maintain signs (including
    fluorescent, yellow-green signs) at
    pedestrian-bicycle crossings and in school zones

64
Transportation Impacts
  • I. Transportation Impacts due to Price Change
  • 1. Limited Resources
  • 2. Price Impact Elasticity
  • II. Impacts Analysis
  • 3. Braess Paradox
  • 4. Land Use and Transportation
  • III. Transportation and Air Quality
  • 5. CAAA of 1990 Impact Measurements
  • IV. ISTEA/TEA-21
  • V. FAFETY-LU
  • VI. Environment Impact Statement
  • VII. Episodic Transportation Controls for AQ

65
V. Environmental Impact Statement (EIS)
National Environmental Policy Act of 1969
(NEPA) Sec 102 (2) (C) requires agencies to
prepare a detailed statement of environmental
impacts for major Federal actions significantly
affecting the quality of the human
environment. NEPA applies to projects and
federal decisions on programs such as permits,
grants, and loans. The NEPA Process
Significant impact
EA
EIS
FONSI
No significant impact
EA Environmental Assessment FONSI Finding of No
Significant Impact
66
Elements of EIS Preparation
Forecast all environmental impacts of the
proposed action. Impact is defined as the
difference between the future state of the
environment if the action took place and the
state if no action occurred. Identification of
any Adverse Environmental Effects which cannot be
avoided should the proposed action be
implemented. The relationship between local
short-term uses of the environment and the
maintenance and enhancement of long-term
productivity (trade-off). Identification of any
irreversible and irretrievable commitments of
resources. Alternatives to the proposed action
(the heart of the EIS). Identification of
mitigation measures Evaluation of alternative
actions from economic, environmental and
engineering viewpoints
67
Problems with NEPAs EIS Implementation
EIS Process often has Limited Influence on
Decisions EISs are often not done for Programs
and Policies Cumulative Impacts are often not
assessed Minimal Requirements to mitigate and
monitor Adverse Effects Insufficient Attention to
Risk Assessment
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