Quantifying Transportation Benefits of Transit-Oriented Development in New Jersey

Document Type

Journal Article

Publication Date


Subject Area

place - north america, mode - car, mode - rail, land use - transit oriented development, economics - appraisal/evaluation, economics - benefits, economics - operating costs, economics - value of time


transportation costs, transit-oriented development (TOD), mode shift, operating costs, value of time, parking, pollution, fares


The cost of transportation plays an important role in residential location choice. Reducing transportation costs not only benefits the user but also improves the performance of the system as a whole. A direct impact of transit-oriented development (TOD) is the change in out-of-pocket costs for users, as well as the changes in costs of externalities and agency benefits. The prime mover for these changes is the shift in population when a TOD is built near train stations and the induced mode shifts from driving to transit. In this study several sites throughout New Jersey were evaluated to determine the cost of driving versus the cost of using rail transit to major employment destinations in New Jersey and New York City. Driving costs were composed of vehicle operating costs (including fuel, wear and tear, and depreciation), value of time based on the highway travel time from origin to destination, parking cost, and cost of externalities such as air and noise pollution, road maintenance, and accidents. Transit costs were composed of fares, parking costs, and values of travel time, waiting time, and transfer time. The likely changes in population resulting from the TOD were used to estimate changes in highway and transit trips. The costs were compared to derive the net benefit for transportation system users as a result of the TOD. Generally, TOD results in financial benefits to the user and the transportation system.


Permission to publish the abstract has been given by Transportation Research Board, Washington, copyright remains with them.