🚭Public Policy and Business Unit 12 – Transportation Policy & Infrastructure

Key Concepts in Transportation Policy

• Transportation policy involves the development and implementation of strategies to efficiently move people and goods while considering economic, social, and environmental factors
• Accessibility refers to the ease with which individuals can reach desired destinations and is a key goal of transportation policy
• Mobility measures the ability to move freely and easily between different locations and is often used as a metric for evaluating transportation systems
• Intermodal transportation involves the use of multiple modes of transport (road, rail, air, water) in a single journey and requires coordination between different transportation networks
• Congestion occurs when the volume of traffic exceeds the capacity of the transportation infrastructure leading to delays and reduced efficiency
  • Congestion pricing (tolls that vary based on demand) is one strategy used to manage congestion
• Transportation demand management (TDM) includes policies and programs designed to reduce travel demand or redistribute it to off-peak times or less congested routes
• Equity in transportation policy seeks to ensure that the benefits and costs of transportation systems are fairly distributed across different populations and communities

Historical Context of Transportation Infrastructure

• The development of transportation infrastructure has been closely tied to economic growth and the expansion of trade throughout history
• In the 19th century, the construction of canals and railroads played a key role in the Industrial Revolution by facilitating the movement of raw materials and finished goods
• The invention of the automobile in the early 20th century led to a rapid expansion of road networks and the rise of car-centric urban development patterns
• The Federal-Aid Highway Act of 1956 authorized the construction of the Interstate Highway System which dramatically improved connectivity between cities and regions in the United States
• The deregulation of the airline industry in 1978 led to increased competition, lower fares, and the growth of air travel as a mode of transportation
• In recent decades, there has been a growing emphasis on sustainable transportation infrastructure that reduces environmental impacts and promotes alternative modes of transport such as public transit, cycling, and walking

Modes of Transportation and Their Impacts

• Road transportation, including cars, trucks, and buses, is the most common mode of transport for both passengers and freight
  • The flexibility and convenience of road transport have contributed to its dominance, but it also generates significant environmental and social externalities (congestion, air pollution, accidents)
• Rail transportation, including trains and subways, is an efficient mode of transport for moving large numbers of people or goods over long distances
  • Rail transport generally has a lower environmental impact per passenger or ton-mile compared to road transport
• Air transportation is the fastest mode of transport over long distances and has greatly expanded global connectivity
  • However, air travel has a high environmental impact due to greenhouse gas emissions and noise pollution
• Water transportation, including ships and barges, is an important mode of transport for international trade and the movement of bulk commodities
  • While slower than other modes, water transport is generally more energy-efficient and has a lower environmental impact per ton-mile
• Active transportation, such as walking and cycling, is increasingly promoted as a sustainable and healthy mode of transport for short trips
  • Investing in pedestrian and bicycle infrastructure can reduce car dependence and improve public health outcomes

Policy Frameworks and Governance

• Transportation policy is shaped by a complex web of actors at the federal, state, and local levels
• The U.S. Department of Transportation (DOT) is the primary federal agency responsible for transportation policy and oversees sub-agencies such as the Federal Highway Administration (FHWA) and Federal Transit Administration (FTA)
• State departments of transportation (DOTs) play a key role in planning, funding, and maintaining transportation infrastructure within their jurisdictions
• Metropolitan Planning Organizations (MPOs) are federally mandated regional bodies that conduct transportation planning and allocate federal transportation funds in urbanized areas
• Local governments, including cities and counties, are responsible for the construction and maintenance of local roads and often operate public transit systems
• Private sector actors, such as transportation network companies (Uber, Lyft) and freight carriers, also play a significant role in shaping transportation systems and policy debates

Funding and Financing Transportation Projects

• Transportation infrastructure is funded through a combination of federal, state, and local sources
• The federal gas tax, which has not been increased since 1993, is the primary source of revenue for the Highway Trust Fund that funds federal transportation programs
  • The declining purchasing power of the gas tax due to inflation and improved fuel efficiency has led to shortfalls in the Highway Trust Fund
• State and local governments generate transportation revenue through a variety of sources, including gas taxes, vehicle registration fees, tolls, and sales taxes
• Public-private partnerships (PPPs) involve collaboration between government agencies and private companies to finance, build, and/or operate transportation projects
  • PPPs can attract private investment and shift some risks to the private sector, but they also raise concerns about accountability and the public interest
• Value capture strategies aim to capture a portion of the increased property values generated by transportation investments to help fund those investments
  • Examples of value capture mechanisms include tax increment financing (TIF) and special assessment districts

Environmental and Social Considerations

• Transportation is a major source of greenhouse gas emissions and air pollution, contributing to climate change and public health problems
• The transportation sector accounts for about 29% of total U.S. greenhouse gas emissions, with light-duty vehicles (cars and trucks) being the largest contributors
• Transportation infrastructure can have significant impacts on land use patterns, urban sprawl, and the fragmentation of natural habitats
• The construction of highways and other transportation facilities has often had disproportionate negative impacts on low-income and minority communities, such as displacement and increased exposure to air and noise pollution
• Transportation policy can play a role in addressing social equity issues by improving access to jobs, education, healthcare, and other opportunities for disadvantaged populations
• Complete Streets policies aim to design streets that safely accommodate all users, including pedestrians, bicyclists, transit riders, and motorists of all ages and abilities

Technology and Innovation in Transportation

• Advances in technology are transforming the transportation sector and creating new opportunities for innovation
• Electric vehicles (EVs) are becoming increasingly competitive with conventional gasoline-powered vehicles and have the potential to significantly reduce greenhouse gas emissions and air pollution
  • The widespread adoption of EVs will require investments in charging infrastructure and the electric grid
• Autonomous vehicles (AVs) use sensors, cameras, and artificial intelligence to navigate without human input and have the potential to improve safety, reduce congestion, and increase mobility for non-drivers
  • However, AVs also raise complex questions about liability, cybersecurity, and the impact on employment in the transportation sector
• Intelligent Transportation Systems (ITS) use data and communication technologies to improve the efficiency and safety of transportation systems
  • Examples of ITS applications include real-time traffic information, adaptive traffic signals, and electronic toll collection
• Mobility as a Service (MaaS) refers to the integration of various transportation services (public transit, bike-sharing, car-sharing, ride-hailing) into a single digital platform that allows users to plan, book, and pay for trips

Case Studies and Current Challenges

• The California High-Speed Rail project aims to connect major cities in California with a high-speed rail system but has faced significant cost overruns and delays
  • The project highlights the challenges of implementing large-scale transportation infrastructure projects in the United States
• The New York City Subway system, one of the largest and oldest in the world, faces ongoing challenges related to aging infrastructure, overcrowding, and financial constraints
  • Recent efforts to modernize the system include the implementation of a new fare payment system (OMNY) and the development of a long-term capital plan
• The COVID-19 pandemic has had a profound impact on transportation systems, leading to sharp declines in ridership on public transit and changes in travel patterns
  • The pandemic has also accelerated trends towards remote work and e-commerce, which may have long-term implications for transportation demand and land use patterns
• The Biden administration has proposed significant investments in transportation infrastructure as part of its Build Back Better plan, including funding for public transit, electric vehicles, and high-speed rail
  • The fate of these proposals depends on the outcome of ongoing negotiations in Congress and the ability to secure sufficient funding