NYC-WTC_000187725

NYC 9/11 Public Portal Document

104 Table 4.4 (Continued) Change in Benefits

Change of %change Benefit Level Share(%)

( Housing Consumer Surplus $3,090,894,000/year 0.28 98.15 t: = $820/worker/year Producer Surplus $35,920,597/year 0.38 1.14 i Is = $9.7/house/year Total Rent $34,026,343/year 0.22 JK = $9.2/house/year Commercial ! Producer Surplus $22,446,885/year 2.06 0.71 i = $0.13/sq ft/year

s Total Rent $33,640,346/year 2.06 } = $0.19/sq ft/year

Total Benefit = $3,149,261,482/year 1- = $835/worker/year = $853/house/year = $0.92/trip

Equilibrium Simulation 3: A Decrease in Rail Commuting Times Simulation 3 shows that a 5% decrease in the travel times of suburban rail is not as beneficial as a 5% decrease in subway travel times. In fact, the effect of this scenario is to reduce rents in each of the four boroughs as households find it less time­ I consuming to locate in the suburbs and commute into the City by rail. However, the benefits accruing to the suburban areas are underestimated, since the rents in the suburban model zones were fixed because suburban housing stock data was not available. As Table 4.5 shows, the effects on the taxable (aggregate producer surplus) portion of benefits is negative. These effects are exacerbated in an alternative scenario which decreases commuter rail travel times by 10%. In this instance, land value benefits for commercial property owners increase, but not sufficiently to offset the worsening of producer surpluses in housing. For this alternative, only the change in benefits is shown by land use type (Table 4.6).

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