A Return on Investment Analysis of Virginia's Interstate System

Report No: 70-R4

Published in 1970

About the report:

Major Findings: Construction of the Interstate System in Virginia has served as a catalyst to: 1. Create 22,705 more manufacturing jobs during the period 1961-1968. 2. Contribute 69,475 more employment opportunities in the non-manufacturing sector. 3. Generate $2,471,266,000 in additional personal income as a result of increased manufacturing and non-manufacturing employment. 4. Stimulate private capital investments of $2,830,784,000 during the period between 1964-1968. 5. Generate $183,833,300 more real estate taxes to the communities having interstate highways. 6. Result in $52,167,000 more state income taxes paid to the Commonwealth of Virginia for the period 1961-1968. 7. Generate sufficient income expansion to contribute to the general economy of Virginia an amount equal to the total highway investment plus 6% interest compounded annually in a period of eight and one-half years. Additional Observations: 1. There are indications that the construction of the interstate system has contributed to full employment, which is one of the national economic goals. 2. The total cost of construction and maintenance of the interstate system in the period 1961-1968 was $1,278,362,900, which leaves an estimated annual return on investment of 11.66%. 3. Temporary losses can be expected in some instances. 4. This study has measured net effects, but it was not possible to estimate the dollar losses to small businesses that were temporarily hurt or permanently disabled.

Disclaimer Statement:The contents of this report reflect the views of the author(s), who is responsible for the facts and the accuracy of the data presented herein. The contents do not necessarily reflect the official views or policies of the Virginia Department of Transportation, the Commonwealth Transportation Board, or the Federal Highway Administration. This report does not constitute a standard, specification, or regulation. Any inclusion of manufacturer names, trade names, or trademarks is for identification purposes only and is not to be considered an endorsement.

Authors

Other Authors

L. Ellis Walton

Last updated: February 12, 2024

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