Impacts of Highway Bypasses on Kansas Towns

US Transportation Collection1996PDFTech ReportBurress, DavidUniversity of Kansas. Institute for Public Policy and Business ResearchK-TRAN (Research program)Kansas. Department of TransportationK-TRAN (Research program)Kansas. Department of TransportationKansasImpactsBenefitsBypassesCostsDecision makingEconomic analysisEconomic impactsEconomic modelsLiterature reviewsPolicyRural areasTraffic estimationTravel timeCause effect relationshipsModelsTrip frequenciesK-TRAN: KSU-95-5KU-95-5 (C-742)This report provides literature reviews, empirical findings and policy analysis related to some of the effects of building a highway bypass around a small town in Kansas. The report describes three types of models: an origin-destination model showing the number of trips between each town and city in Kansas; a model to estimate the value of the time-saving generated for through traffic by bypasses in Kansas; and a variety of economic impact regression models. In the long-term, bypasses in Kansas typically have not had significant negative effects on the local economy. Many counties and towns have enjoyed some long-term benefits from the construction of bypasses. The major part of this benefit consisted of an encouragement of basic industries due to the improved transportation system. Growth in basic industry then had second-round effects on local retailing and services. Two important background factors are the short-term effects of recessions and the long-term health of small towns in Kansas. The 1990-91 recession had a substantially negative effect on the growth of travel-related firms in small towns, as compared to its effect in the rest of the country. The growth rates for all types of business in small towns were found to be less than corresponding growth rates in the rest of the country. Bypasses around small towns in Kansas have been highly beneficial to through traffic. Bypasses of 21 small towns in Kansas generated average time-savings for through traffic that are conservatively valued at over $1 million per year (in 1994 dollars). With a discount rate of 10%, an average bypass would be justified on a benefit-cost test if the present value of all costs was less than $10 million. Assuming that the initial costs of land acquisition and construction constitute at least half of the social cost, then a typical bypass would be justified on a benefit-cost test if those initial costs were less than $5 million. Larger initial costs could almost certainly be justified, but doing so would require a more complete benefit-cost analysis.120