NYC-WTC_000187725

NYC 9/11 Public Portal Document

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Table 4.1 (Continued)

Change in Benefits

Change of %change Benefit Level Share(%)

Housing Consumer Surplus $2,434,011,000/year 0.22 97.62 = $645/worker/year

Producer Surplus $50,366,576/year 0.53 2.02 = $13/house/year Total Rent $49,146,882/year 0.32 = $13/house/year

Commercial Producer Surplus $8,925,007 $/year 0.82 0.36 = $0.05/sq ft/year Total Rent $13,407,232/year 0.82 = $0.08/sq ft/year Total Benefit = $2,493,302,583/year = $661/worker/year = $675/house/year ■I! r By decreasing subway times by 10%, rather than 5%, bigger impacts are produced with the result that benefits increase roughly by a factor of two.^® In this case, the value capture tax would be $28 per dwelling unit and 10 cents per commercial square foot. By adjusting the values of two key parameters to obtain somewhat different travel time and housing rent elasticities of location demand, the results are also shown to vary somewhat in terms of , taxable (aggregate producer surplus) and non-taxable (aggregate consumer surplus) benefits, but they are within a reasonable band of the result of the first simulation. For these alternatives. Table 4.2 shows only the change in benefits; first for a doubling of the decrease in subway commuting times, and then for different travel time and housing rent elasticities. I I

This rough doubling happens because, in the model, the effects of travel time changes are roughly linear for relatively small increments.

CITY_2IMC10 0_0 0 6 6623 2 8

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