Quantifying transportation benefits of transit-oriented development in New Jersey

Sandeep Mudigonda, Kaan Ozbay, Ozgur Ozturk, Shrisan Iyer, Robert B. Noland

Research output: Chapter in Book/Report/Conference proceedingChapter


The cost of transportation plays an important role in residential location choice. Reducing transportation costs not only benefits the user but also improves the performance of the system as a whole. A direct impact of transit-oriented development (TOD) is the change in out-ofpocket costs for users, as well as the changes in costs of externalities and agency benefits. The prime mover for these changes is the shift in population when a TOD is built near train stations and the induced mode shifts from driving to transit. In this study several sites throughout New Jersey were evaluated to determine the cost of driving versus the cost of using rail transit to major employment destinations in New Jersey and New York City. Driving costs were composed of vehicle operating costs (including fuel, wear and tear, and depreciation), value of time based on the highway travel time from origin to destination, parking cost, and cost of externalities such as air and noise pollution, road maintenance, and accidents. Transit costs were composed of fares, parking costs, and values of travel time, waiting time, and transfer time. The likely changes in population resulting from the TOD were used to estimate changes in highway and transit trips. The costs were compared to derive the net benefit for transportation system users as a result of the TOD. Generally, TOD results in financial benefits to the user and the transportation system.

Original languageEnglish (US)
Title of host publicationTransportation Research Record
PublisherNational Research Council
Number of pages10
ISBN (Electronic)9780309295277
StatePublished - 2014

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Mechanical Engineering


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