What is it about?
This paper looks at how Phoenix's new light rail line (built in 2008) impacts new business creation around stations. By statistically comparing the areas around the intersection of major highways with areas around new light rail stations, the paper shows that there were in fact more new retail, service, and knowledge businesses in the light rail areas after the line opened. neighborhoods closer to stations also saw larger numbers of each of these types of new businesses.
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Why is it important?
The US has seen a large increase in investment in fixed rail public transit systems in the last thirty years, with billions of dollars spent on construction and maintenance. While there is a fair amount of research that shows these systems (generally) increase the property value of surrounding areas, there is little research that indicates their impact on new business creation. Since new businesses are a fundamental driver of economic growth, it is important for cities to know whether they are getting a sustainable return on investment for these transit systems.
Perspectives
I like this paper because it uses an innovative method to explicitly test the impact of light rail construction using a "quasi-experimental" research design, and also provides insight into the spatial extent of light rail's impact on new business creation. It also studies transit implementation in a traditionally auto-centric city, which is particularly important to understand given the fact that sprawling Sunbelt cities are continuing to grow very quickly.
Kevin Credit
Michigan State University
Read the Original
This page is a summary of: Transit-oriented economic development: The impact of light rail on new business starts in the Phoenix, AZ Region, USA, Urban Studies, September 2017, SAGE Publications,
DOI: 10.1177/0042098017724119.
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