Decades of research show that transit positively impacts the economic health of our region through a broad range
of pathways.
Decades of economic analysis have yielded a singular conclusive finding:
Investing in transit results in regional economic growth
The studies in Table 1 all calculate benefit-cost ratios for transit investments in urbanized areas. Benefit-cost ratios are a quantification of the economic returns that result from a financial investment. In all cases shown below, the benefit-cost ratio exceeds 1, meaning that $1 invested in transit yields more than $1 in economic benefits. Three Chicago-specific studies conducted over the past two decades all show significant benefits to the region if we were to invest in a state of good repair or expand service. Of all the studies we surveyed, the smallest expected return from investing in transit was 21%. This would be considered a hugely successful investment in the private sector.
Table 1: Transit yields a high return on investment
Public transportation produces significantly lower greenhouse gas (GHGs) emissions per passenger mile than private vehicles.[10]
Buses' emissions are 33% lower than cars, and passenger trains are 76% lower.
Transit benefits the economic health of the greater Chicago region in a variety of ways.[1][2][3] When regions step up their transit investment and transit ridership increases, businesses, households and communities experience the following types of economic benefits:
When combining all providers together, public transit was the 10th largest employer in the Chicago region in 2017.
Healthy Chicago 2.0 identifies active transportation as a key solution for increasing overall regional health. Objectives include increasing those who bike, walk and take public transportation to work.[11]
Analysis of National Highway Traffic Safety Administration and Federal Transit Administration data show that metro areas with higher public transportation use have lower traffic fatality rates.[12]
Expanded investment yields more transit usage, while minimal investment depresses the number of riders. As municipalities and regions grapple with how to keep their transportation infrastructure functioning, policy makers face tough decisions about how and where to make investments. The following chart is a simplified framework of how different levels of investment impact ridership. If our region wants more people to use transit—a highly efficient, equitable and sustainable form of transportation—we need to invest in it.
Table 2: Tending to transit
Promoting the connection between transit investments and business in Chicago
Since 1934, the Metropolitan Planning Council (MPC) has worked to make the Chicago region a better place to live and work by partnering with businesses, communities and governments to address the area’s toughest planning and development challenges. MPC is dedicated to achieving a resilient, thriving, equitable and healthy region. Join us in implementing our 10-point action agenda to ensure our region’s drinking water systems and supplies remain sustainable.
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