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Transportation Watch

Traffic Congestion and Urban Productivity

For many, the link between congestion and economic productivity is a “no brainer”. It follows simply intuition—if it takes longer to get to work, an appointment, or a client, productivity goes down and the economy suffers. The costs of transporting goods from factory to market are a big factor in where firms decide to locate their plants and their distribution centers.

Congestion reduces travel speeds and slows the pace of the economy. Just ask Wal-Mart. Indeed, the academic discipline of urban economics is founded on these ideas of transportation costs. (See full article below)



 

News Highlights

Utah's 4.5 percent job growth in June ranked highest in the nation (Deseret Morning News, Daily Herald, and Salt Lake Tribune).

Most Utah lawmakers skip a free screening of Michael Moore's "Sicko" (Tribune and Morning News).

Quote of the Day

"Voters deserve to know what they are getting when they vote in November."

-- Sen. Howard Stephenson, urging the Salt Lake County Council to postpone putting the school districts split question on the ballot until the Legislature can find a way to equalize the burden of school construction costs. (Morning News)


Wednesday Buzz
Written by LaVarr Webb & Associates

Washington Watch

Hatch Responds to Veto Threat

Sens. Orrin Hatch and Chuck Grassley respond "to the Bush Administration's veto threat of the reauthorization of the State Child Health Insurance Program (SCHIP), a bipartisan compromise that the two Republicans helped negotiate on the Senate Finance Committee" (see press release); Hatch pens op-ed encouraging fair pay for federal judges (Roll Call -- subscription required).

Utah Foundation Quick Poll

The Utah Foundation has posted a new quick poll question on its homepage: "What is your biggest concern about Utah public education?" Head on over and vote.

Today in Political History

July 18, 1969Mary Jo Kopechne and Senator Edward Kennedy plunge off Chappaquiddick bridge. Kennedy escapes but Kopechne drowns. Kennedy fails to report the incident for almost 10 hours and is later found guilty of leaving the scene of the accident and given a two-month suspended sentence. (Source:  Perspicuity

July 18, 1972Jane Fonda delivers an anti-war speech on Hanoi Radio, one of a series of six, an act many view as an act of treason. (Source:  Perspicuity

Wise Words

“The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence. If `Thou shalt not covet' and `Thou shalt not steal' were not commandments of Heaven, they must be made inviolable precepts in every society before it can be civilized or made free.”

-- John Adams, A Defense of the American Constitution (Source:  Patriot Post

Campaign Tip

Use Digital Printing to Save Money

Small campaigns that only print a few thousand pieces of mail or literature at a time have always had to pay a premium because of the high setup fees charged for jobs done on traditional off-set printing presses.  That’s no longer the case with digital off-set printing.  Digital off-set presses are basically big color laser printers designed specifically to print high-quality pieces in small quantities.  Be sure to shop around for a printer who has one.  The cost savings will be significant. With digital printing it’s also much easier to personalize printed campaign literature. (Source:  Campaign Tips) 

National Politics

Best Stories From …

-- The Politico: "In his first national interview since the near-collapse of his presidential campaign, John McCain promised Monday to stay in the race at least until the first caucuses and primaries are over in the early part of 2008."

-- New York Magazine: "[McCain's] campaign operation is in meltdown, his poll numbers are anemic, no one thinks he can win. But is the GOP lost without him?"

-- Washington Post: "He raises tens of millions of dollars over a few months. His supporters are passionate, almost fanatical. And his grass-roots movement threatens a more established rival. A description of Howard Dean in 2003 or Sen. Barack Obama today?"

-- Los Angeles Times: Columnist Jonah Goldberg: "At a candidate forum for trial lawyers in Chicago on Sunday, Hillary Clinton proclaimed that the Bush administration is 'the most radical presidency we have ever had.' This is, quite simply, absurd. But such boob-bait for the Bush bashers is common today in Democratic circles, just as similar right-wing rhetoric about Bill Clinton was par for the course a decade ago. The culture war, it seems, has distorted how we view politics more than we realized. Trust in government is at historic lows, but faith in one's own 'team' remains remarkably durable."

Sierra Club Newsletter

The Utah Chapter of the Sierra Club has released its Late Summer newsletter. This edition looks at the America's Red Rock Wilderness Act, which would designate almost 10 million acres of wilderness in Utah.

Blog Watch

-- At The Senate Site, Sen. John Valentine reports: "After scrutinizing 80 applicants, selecting finalists and conducting interviews, the hiring committee recommended Jon Ball be appointed as Utah's new Legislative Fiscal Analyst. This afternoon Legislative Management voted to accept their recommendation. ... For those who don't know him, Mr. Ball's character traits include a high energy level, a thorough knowledge of the state budget & the budgeting process, leadership & organizational ability, raw candlepower, a sense of humor, and expertise in cutting-edge technology. He earned his Masters of Public Policy at Georgetown, and has put it to use through 15 years of public service at both the state and federal level. Best of luck, Jon. We look forward to working with you in your new capacity."

-- Tim Beagley says: "Is there nobody out there willing to quit dancing around the teacher shortage problem? Now, even the Utah Foundation has done the two-step. Their latest report is certainly better than the dreadful one released by the K-16 alliance a few weeks ago but they miss the point like everybody else. ... While the differential pay and mentoring pieces will be of great help, by themselves they can not stop the attrition. The real problem is that our public schools have become the latest reflection of a society that shuns personal responsibility and our teachers are standing on the front lines of the battle to set our culture back on course."

-- Rep. Steve Urquhart stands by his assertion "that extreme environmental groups have sued to stop reseeding efforts (native grasses for flammable non-native grasses) after fires," and furnishes evidence to back up his claim. (See also related posts at Part of the Plan and KVNU's For The People.)

Lighter Side

Favorite Headlines

At Least Until Rigor Mortis Subsides
"Man Who Was Killed Keeping a Stiff Upper Lip"--headline, Daily Mail (London), July 17

The Yankees Are Looking to Sign the Thrower
"Texan Injured When Rock Thrown at Taxi in Pittsburgh"--headline, KCEN-TV Web

News You Can Use

"Humans Walk Upright to Conserve Energy"--headline, Associated Press, July 16

 

 

Wednesday
July 18, 2007


Utah in the National News   

Associated Press: "A lawsuit filed by an American Indian tribe against the federal government for blocking a nuclear waste repository revealed for the first time Tuesday how much money the tribe stood to gain by accepting the waste in Utah's west desert. The Skull Valley band of Goshute Indians was receiving $200,000 a year while waiting for federal approvals to accept 44,000 tons of spent fuel rods -- an amount that was to increase to $1 million a year with the arrival of the waste, 'plus an opportunity for profit-sharing,' court papers disclosed."


Local Headlines

Deseret Morning News

- Huntsman calls for a fireworks ban

- Mormons in Congress not flocking to Romney's side

- Utah job picture rosy

- Goshutes, PFS sue Interior

- Salt Lake County boosts jail beds to ease overcrowding

- Council, Billings back a belt loop

- Guard team certified for haz-mat disasters

- Real S.L. inching toward $35M

- M.D. treats lawmakers to 'Sicko'; 2 show up

- Picketing homes restricted

- West side to challenge district-split law

- Sandy Council votes to seek split from Jordan District

- City Council backs ban

- Fiscal conservative Romney no miser on campaign spending

- Business alliance director resigns

- Several hopefuls file for municipal offices

- Gasoline prices are down but rising

- Silver Shovel Award honors Utah economy

Standard-Examiner

- Ogden council OKs anti-gang ordinances

- Gas Rising

Park Record

- Primary election slated in Francis

- Candidates thrust into primary

- Chamber/Bureau urges 'Buy Local'

- Chamber/Bureau makes little changes to bring more visitors to Summit County

Davis County Clipper

- UTA Front Runner trains to begin tests next month

- Controversial law waiting for database

- WX council looking at required recycling program

- Public hearing set on Legacy connection

- His point: Government has appetite for money

- Her point: The good life isn't supposed to be free

Tooele Transcript Bulletin

- UTA plans to ask for tax hike in Tooele and Grantsville

Logan Herald Journal

- Valley pair vying for top Snow job

Daily Herald

- Director of Downtown Business Alliance of Provo resigns

- Goshen without candidates for council

- Governor honors Utah's first WMD team

- Utah leads nation in job growth

- Editorial: Genola's leaders should step up

St. George Spectrum

- Downwinders concerned about Milford Flat Fire radiation

- Op-ed: Study WRA report on water use

KCPW

- Lawmakers Report on Tax-funded Trip to China

- Governor Calls for Ban on Personal Fireworks

- Mayor Appoints Four to Replace Resignees on Police Review Board

- 2nd District Voters: Global Warming #1 Environmental Problem

- Mentor Program Could Keep Teachers Teaching

- Lawmakers To Discuss Power Alternatives

Salt Lake Tribune

- Guv calls for fireworks ban

- Safety, independence at crossroads

- State leaders take a pass on 'Sicko' tickets

- Cannon objects to Demo saying Bush lied

- Lawmakers defend China jaunt

- Lawmakers look at limiting access to remodeled Capitol

- Sandy agrees to put Jordan school split on ballot

- More details emerge on RSL funding

- A roadblock for protesters

- Ballot blank as nobody files for town's council

- Finally, relief at the pump

- Fireworks distributors pan guv's proposed ban

- Renewable energy the coming boom?

- Rolly: Dumb thief nearly begs for a bust

- Crowding pushes S.L. County to use jail beds

- Hatch urges fellows to back fourth-seat bill

- Goshute nuclear storage allies sue Interior Department

- Jobs aplenty in Utah; employers yearn for workers

- Editorial: Part-time elected officials shouldn't get health insurance

- Editorial: Children's health: Bush veto of CHIP reauthorization is a threat


Political Calendar

Please submit calendar items to Daily@UtahPolicy.com

- July 18: Legislative meetings scheduled throughout day. See legislative calendar for details.
- July 18: Midday Metro at 10 a.m. on NPR Utah, KCPW 88.3 FM, features the NAACP’s Jeanetta Williams and Edward Lewis Jr. Topics include the minority education gap, workplace discrimination, and the NAACP's national class action lawsuit against mortgage lenders. To join the conversation call 801-355-TALK or email midday@kcpw.org during the show.
- July 18: Governor Huntsman to attend the USSA Center for Excellence Groundbreaking Ceremony, 2 p.m., Park City Ice Center, Heber.
- July 20: Governor Huntsman to attend the National Governor’s Conference in Traverse City, Michigan.
- July 20: Medicaid Interim Committee, 9 a.m., room W135.
- July 23: Local Issues Task Force, 9 a.m., room W110.
- July 25-27: Lieutenant Governor Herbert to attend National Lieutenant Governor's Association, Williamsburg, Virginia.

- See the entire calendar


Elected Officials Birthday List


Utah Policy Daily is a service
of Utah Policy.com

Publisher: LaVarr Webb
Editor: Paul Hollingshead
News: Golden Webb
Calendar and Subscriptions: Luci Hollingshead

 

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Feature Story


Traffic Congestion and Urban Productivity

By Samuel R. Staley, Ph.D., Director of Urban Growth & Land Use, Reason Foundation

For many, the link between congestion and economic productivity is a “no brainer”. It follows simply intuition—if it takes longer to get to work, an appointment, or a client, productivity goes down and the economy suffers. The costs of transporting goods from factory to market are a big factor in where firms decide to locate their plants and their distribution centers.

Congestion reduces travel speeds and slows the pace of the economy. Just ask Wal-Mart. Indeed, the academic discipline of urban economics is founded on these ideas of transportation costs.

Nevertheless, remarkably little academic research has been conducted to empirically “prove” that lower travel speeds and traffic congestion reduce urban productivity. In a previous issue, we reported on important work on this issue conducted by French economist Remy Prud’homme and his colleague Chang-Woon Lee. They showed that increasing travel speeds increased regional urban productivity. Now, an even more rigorous study of congestion’s impacts on urban productivity by U.K. transport economist Daniel J. Graham is about to be published in the Journal of Urban Economics.

Cities have long been recognized for their productive benefits—they bring people, services, and goods together in synergistic ways that increase productivity in what economists call “agglomeration economies”. But the productivity improvements aren’t infinite; they are limited by “negative” externalities such as noise, pollution, and congestion that can put the brakes on urban growth. Graham wanted to see how traffic congestion influenced urban productivity through its influence as a negative externality.

So, Graham gathered data on employment, assets, location, payroll and other information from almost 50,000 firms in Britain’s 10,780 wards. These firms were grouped into nine industries: manufacturing, construction, hotels & catering, transportation & storage & communications, real estate, information technology, banking & finance & insurance, business services, and public services. He then developed a measure of how congestion and its urban location influenced each firm’s productivity.

Graham thought that previous measures of access, which relied primarily on straight-line distance, might not capture the full costs of congestion. His measure of congestion breaks from traditional research by adding the time and the speed of travel to a distance-based measure of congestion.

Graham’s results comport with economic theory and intuition, supporting the proposition “that urban road traffic congestion plays a significant role in ‘constraining’ the benefits of agglomeration, and consequently, that it may serve to reduce achievable levels of urban productivity.”  Moreover, his estimates that include the effects of travel time and travel speed tend to find congestion impacts about 30% higher than traditional measures that rely primarily on more narrow distance-based measures.

In short, falling travel speeds and lengthening travel times means that businesses experience faster “diminishing returns”, reaching a point of zero (or negative) productivity growth faster than those with higher travel speeds and lower travel times. The most pronounced effects were on productivity in the manufacturing, construction, hotels & catering, and IT sectors. Banking, finance & insurance, business services, and public services, traditional “CBD businesses”, did not appear to be impacted as negatively.

Notably, Graham observes in his conclusion that the constraining impacts of traffic congestion on urban productivity tend to reduce densities in the most urbanized locations, promoting decentralization or, in more colloquial terms, sprawl. (Reprinted from Reason Foundation newsletter)

 
 

On the Move

Links to the Week's Key Transportation News Stories

-- UTA hopes to recoup loss (Standard-Examiner).

-- From the CEO: Transportation options for county (Davis County Clipper).

-- County rejects CVTD tax plan (Logan Herald Journal).

-- UTA asking 6 counties for tax hike (Deseret Morning News).

-- Mystery Train: Draper residents say plans for a meandering TRAX line are way off track (City Weekly).

-- Editorial: Dodging responsibility (Standard-Examiner).

-- Matheson pushes funding for Dixie Drive project (St. George Spectrum).

-- UTA narrows Sugar House options down to a bus, trolley or light-rail (Deseret Morning News).

-- Pleasant Grove's 2000 West to open in a year (Daily Herald).


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Utah Transportation Watch is a service of Utah Policy.com