Economic Impact of Existing and New Commuter Rail Service on Retail and Recreational Spending in the Vicinity of Station Areas

Abstract

A quantification is provided of the impact of both existing and new commuter rail services on the economies of local jurisdictions, and selectively on direct state government revenues. Specifically, an investigation and documentation have been conducted on increased spending by rail riders on retail services in local station areas and increased spending by recreational rail travelers in resort areas as a result of the presence of rail service. Actual ridership surveys conducted on three commuter rail lines in New Jersey during 1995 and 1996 are used to establish relationships between increased spending in local station areas, as well as other economic impacts, such as induced ridership and relocation of residents as a result of improved commuter rail service. The three surveys were large-scale surveys of two entire rail lines, the Morris and Essex Lines and the Atlantic City Line, and a weekend survey during the summer tourist season of the coastal portion of the North Jersey Coast Line. With a 40–60 percent return rate, these surveys represented a rich database for estimating the impact of commuter rail service on local economies.