Time Savings vs. Access-Based Benefit Assessment of New York’s Second Avenue Subway

Abstract

Under the current practice of benefit-cost analysis, the direct economic benefits produced by a newly built transit facility are assessed based on how it affects travel time and various costs that are associated with transport needs and travel behavior. However, the time-saving-based benefit calculation approach has been questioned and criticized. Given the strong correlation between accessibility and land value, we propose the access-based land value benefit assessment as an alternative, and apply this assessment method to analyzing the Second Avenue Subway project in Manhattan, New York. The primary principle of the access-based method is that the economic value of a transport project’s intangible gains is largely capitalized by nearby properties’ value appreciation, which is directly caused by improved transport accessibility. We find that: (i) the actual travel time saving is lower than originally forecast; (ii) a strong positive correlation between residential property value and job accessibility by transit is observed; (iii) the appreciation in sold property value and rented property value both far exceed total project cost; and (iv) such results support the decision to approve and construct the Second Avenue Subway.

A Review of Research on the Value Evaluation of Urban Underground Space

“…In terms of economic value evaluation, a large number of profitable UUS projects involve the calculation of land use rights prices, including metros, underground commercial spaces, and underground parking lots [60,61]. In terms of indirect value assessment, accessibility has been introduced into the social value of UUS [62]. The focus on assessing the potential value of UUS is steadily increasing, with some scholars seeking to establish procedures to assess the sustainability of UUS [63].…”

What influences parents’ decisions to use sustainable mode (public bus) with their children? A case study in Batu Pahat, Johor

“…However, many studies (e.g. [15]- [16]) have investigated the objective factors on public transport use, but lack of empirical evidence of the influence of subjective factors such as psychological variables, especially on the children's issues. Thus, this study applies the Theory of Planned Behaviour (TPB) [17] model framework for investigating the subjective factors influencing parents' decisions to use public bus with children, which act as behaviour (BEH) of this study.…”

Access-based land value appreciation for assessing project benefits

“…Engaging understandable and consistent access metrics is the cornerstone to gear the LVC method from the early planning stage, and thereby introducing and promoting an accessbased land value benefit assessment method are in demand. This method is rooted in the consensus that the primary motivation of transport development is facilitating access to desired places instead of shortening travel time, which can be found in studies by Levinson and Wu (2020) and Levine et al (2019) and was empirically tested by Sun et al (2016) in Tianjin, Wen et al (2018) in Hangzhou, Lin and Hwang (2004) in Taipei, Hiironen et al (2015) in Helsinki, Dewees (1976) in Toronto, Agostini and Palmucci (2008) in Santiago, Hess and Almeida (2007) in Buffalo, Du and Mulley (2012) in Newcastle, and Dubé et al (2013) in Montreal, and Wang and Levinson (2022) in New York, among others. The value of access derives from its ability to connect places and people, which depends on the location of people and the directness, speed, and, in the case of transit, frequency of the transport network (Istrate and Levinson, 2011).…”