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This report presents an analysis of the effects of highway bypasses on the business activities of a sample of small Texas cities. An initial explanatory analysis (using a before-and-after method, matched pairs, and projected development) did not reveal a significant relationship between highway bypass construction and a change in business volumes. It can be concluded that business volumes in the more rapidly growing cities with imperfect infrastructure and relatively high local traffic benefit from highway bypass construction. On the other hand, initial econometric modeling demonstrated that a highway bypass can have a statistically significant negative effect on business volumes in the small Texas cities that were studied. The results of the econometric modeling show that the way in which a business community responds to a highway bypass is complex. The major factor determining business volumes is the city's population.
Case studies of the economic impacts of highway bypasses on individual towns are needed since the effects of bypasses may vary a great deal from place to place. The objectives of this report were for a sample of small Kansas towns that have highway bypasses, (1) assess the impact of the bypass on the towns' total employment, (2) measure the impact on retail sales of the towns' travel-related businesses, (3) measure the impact on employment of the towns' travel-related businesses, (4) measure the impact on labor cost per employee of the towns' travel-related businesses, and for the Kansas counties that contain the sample of small Kansas towns that have bypasses, (5) assess the incremental impact on the county's road maintenance expenditures of assuming maintenance responsibility for the previous road alignment.
The bypass report summaries ... were based on interviews with businessmen and community leaders of cities that have actually experienced firsthand the impacts of a highway bypass.
This synthesis report will be of interest to DOT administrators, supervisors, and staff, as well as to the consultants working with them in assessing the economic development impacts of existing or proposed transportation investments. Metropolitan Planning Organization regional and local staffs might also find it informative. It is intended to help practicing planners become aware of the range of methods and analysis techniques available, organized by the different categories of agency needs, to address different types of planning, policy, and research needs. This synthesis summarizes the current state of the practice by means of a survey of transportation planning agencies in the United States, Canada, and the United Kingdom. This report provides reviews of the analysis methods used in recent project and program evaluation reports of these agencies, in addition to a bibliography of economic literature and guides.