NYC-WTC_000187725

NYC 9/11 Public Portal Document

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condominiums, cooperatives and apartments, Manhattan residents found it feasible to move to Queens, Brooklyn and the Bronx, increasing rents there by about 1.05% to 1.35%, while rents in Manhattan decreased by 0.03% for condominiums and cooperatives, and by 0.43% for apartments. As a result of lower waiting times, shopping trips increased from 0.39% to 0.51%. This triggered an increase in shopping rents in Manhattan by 1.04%, in the other boroughs by about 1.0%, and in the suburbs by 0.8%. The aggregate consumer surplus increased by 0.02% amounting to a benefit of $953 percommuter per year. The producer surplus in housing increased by some $89 million, amounting to about $24 per dwelling per year. On the shopping side, there is a producer surplus of $0.06 per square foot of shopping floor space corresponding to $11.5 million per year. The total benefits of reducing waiting times on transit are equal to $3.7 billion, amounting to a benefit of $1.57 per trip (all annual round-trip commutes plus shopping round-trips) . Since, on the average each commuter saves 2.5 minutes per one way trip, the implied value of commuting time for the service area is $18.84 per hour. Most of the benefits (97.3%) are increases in consumer surplus with only 2.39% representing an increase in housing producer surplus and 0.31% an increase in commercial producer surplus. Taxing the producer surplus increases by means of a lump sum tax would raise $100 million annually which could go toward funding the policy of doubling the number of trains. Because the actual costs of this policy are not known, a cost-benefit ratio cannot be calculated. Table 4.12 A Reduction in Subway Waiting Times from 5 to 2.5 Minutes (Network Based Travel Times): Mode Splits, Change in Housing Rents, Change in Commercial Rents, and Change in Benefits Mode Splits Commuting Trips (One Way, Daily) Mode Trips Market Share Before After Before After (% change) (% change) Auto 1,618,819 1,613,904 42.69 42.51 (-0.30) (-0.41) Bus 423,713 420,458 11.17 11.08 (-0.77) (-0.88) Rail 105,722 104,855 2.79 2.762 (-0.82) (-0.93) Subway 1,181,193 1,196,927 31.15 31.53 ( 1.33) ( 1.22) Walk 462,634 460,173 12.20 12.12 & Other (-0.53) (-0.64)

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CITY_21MC100_006662355

NYC-WTC_000187855