Economics of Active

Community Environments

By Jay Daniels, MPH

Healthy Communities Consultant, SC Dept of Health and Environmental Control

Evidence on Physical Activity and Health

• According to a San Diego State University study published in 2009 in the American Journal of Preventative Medicine………

• “the biggest single factor influencing physical activity around the world is accessibility to sidewalks. “

“Designing neighborhoods to support physical activity

for recreation and transportation purposes should be a public health

priority around the world.”

• Overweight/obesity was associated with living on a highway, living on a street with no sidewalks or with sidewalks on one side only, and having poor access to four or more recreational facilities. (Giles-Corti et al., 2003

• The county-level, but not metropolitan-level, sprawl index was associated with BMI and risk of obesity. (Ewing et al., 2003)

• Increased mixed land use and daily distance walked were associated with reduced obesity; increased time spent in a car was associated with increased obesity. (Frank et al., 2004)

What Is The Connection?

There have been Transportation Enhancement monies that have not been spent on enhancing actual transportation.

• TE dollars should actually make transportation more efficient and/or offer transportation

options.

Some Bad News

Population Trends

Between 1960- 2000, the population of state X increased by ~17%.

By 2030, a population increase of 8.34% is predicted

Registered Vehicles (RV)

Between 1960-2000, the number of RV in state X grew 162 %.

If this trend holds true, by 2040, there will be 150% more cars.

VMT

In 1975, the daily VMT in 1975 was 102.5 million

By 2020, the projected increase above 1975 values is 234.3 million (229 %)

As populations increase, the percentages of registered vehicles and VMT increase exponentially.

Air Quality

• Vehicle miles traveled (VMT) growth projections are outpacing improvements in CO2 emissions (Parris Glendenning, Former Governor of Maryland and currrent Executive Director of Smart Growth Leadership Institute)

–Air quality is getting worse, not better

OK, So What……..

Loss Of Attainment

• Loss of Federal Highway and Transit Funding

• Boutique Fuels

• Enhanced Regulatory Oversight

• Restrictive Permitting Requirements

• Mandatory Emissions Offsetting

• Loss of Economic Development Opportunities

US Chamber of Commerce, http://www.uschamber.com/issues/index/environment/nonattainmentconseq.htm

Other Indirect Costs

Traffic congestion costs American motorists $63.1 billion a year in wasted time and fuel costs. Americans [waste]spend 3.7 billion hours a year stuck in traffic.

Safety

Motor vehicle crashes cost State X $11 billion per year, $977 for each resident, in medical costs, lost productivity, travel delays, workplace costs, insurance costs and legal costs.

National Association of Realtors“Voters approved 70% of the ballot measures (in 2006) supporting public transportation, voting to spend $40 billion in new transit-related investments at the local, regional and state levels.”

On Common Ground, Summer 2007: 7

Household Expenditures, 2005

0

5

10

15

20

25

30

35

Housing

Transportation

Food

Health Care

Entertainment

Education

Bureau of Labor Statistics

The US Office of Technology Assessment estimates that a single house built on the urban fringe requires $10,000 more in public services than one built in the urban core.

Suburban areas cost even more.

In 2004-5 School Bus Transportation (State and Local)

Cost State X Taxpayers:

$404,245,81270% of students are bused

By Rate of Comparison

• California spent: $469,538,000 (only 65 billion more)only 14.6% are bused

State X is 3.65 times smaller than California

If the rates were equivalent, State X would have spent only 128 million in school bus transportation rather than 404 million…do you think that State X could use the extra 276 million saved?

At The Community Level – The Good Stuff

Economics of Smart Growth Developments

Controlling for 30 variables, houses sold from 1997 – 2005 in Kentlands and Lakelands (MD) sold for $35k - $42k and $10k - $15k more, respectively, than in surrounding sprawl-type developments

On Common Ground, Summer 2007: 55

“Street Smart”• Kirkland, WA – exchanged $3M to add

three lanes on busy street for $400K for intersection improvements.

• Result: traffic moves well, more and better maintained sidewalks.

Trails Make Economic Sense

• Lots adjacent to the Mountain Bay Trail (Brown County, WI) sold faster and for 9% more than other lots

• 2002 survey conducted by Nat’l Assoc. of Realtors and Nat’l Assoc. of Home Builders: trails promoting active transportation ranked as the second most important community amenity.

• Developer of Shepard’s Vineyard (Apex, NC) added $5k to price of homes adjacent to regional greenway; homes were still the first to sell.

On Common Ground, Summer, 2007: 18

Economics: The Value of Active Communities

Tourism:

“Bicycling visitors to the northern Outer Banks generate an economic impact of $60 million annually.” (North Carolina Department of Transportation)

Active Outdoor Recreation Economy

Bicycling, fishing, hunting, paddling, snow sports, trail use, wildlife viewing

Outdoor Industry Foundation (http://outdoorindustry.org/images/researchfiles/RecEconomypublic.pdf?26)

• Contributes $730B annually to US economy

• Supports nearly 6.5 million US jobs

• Generates $88B in annual state and national tax revenue

“We will not be a city of wealth unless we can attract those who have the option to go elsewhere.”

Rice University Professor Dr. Stephan Klineburg

Impact of “Green” Commitment

Over the decade of the 1990s, the number of college educated 25 to 34 year-olds increased 50 percent in the Portland metropolitan area – five times faster than in the nation as a whole.

Portland has focused on increasing it’s intellectual capital by making itself marketable to those who are educated by offering a sense of place & community.