ADHS Economic Evaluation 1

Executive Summary Report

ECONOMIC IMPACT OF THE APPALACHIAN DEVELOPMENT

HIGHWAY SYSTEM

Congress established the Appalachian Regional 

Commission (ARC) in 1965. The intent was to 

foster and promote the economic and social

development of the Appalachian Region which

includes all of West Virginia and portions of 12 

other states from Mississippi to New York. 

THE APPALACHIAN DEVELOPMENT

HIGHWAY SYSTEM (ADHS)

In order to promote economic development in the 

Region, Congress authorized the Commis-sion to 

carry out a number of programs, including the

development of the Appalachian Development

Highway System. The ADHS is envisaged as a 

3,440 mile network of highways (with 3,025 miles 

authorized for improvements by the ARC)

providing essential transportation access for

improving the Appalachian Region’s economic

position. The ADHS has 26 corridors and, to

date, is 75% complete.

THIS ECONOMIC IMPACT STUDY

This study focuses on 12 of the 26 ADHS

highway corridors that are largely complete and 

determines the extent to which these corridors 

have helped the Region’s economy. By

restricting the study to 12 of the 26 corridors, the 

counties impacted are limited to 165 counties of 

the total 399 counties in the Appalachia Region. 

These counties are most affected by

improvements in the 12 corridors. 

A primary objective of this study is to measure, in 

retrospect, the extent to which the completed

portions of the ADHS have contributed to the

economic well-being of Appalachia. If the

completed corridor segments have succeeded, 

then it bodes well for the economic development 

potential of the remainder of the ADHS corridors 

that are not yet funded and/or built.

THIS EXECUTIVE SUMMARY

This brief report summarizes a study conducted 

by Wilbur Smith Associates in 1998 that included 

a comprehensive data collection effort and a

thorough economic impact analysis. Highlighted 

in this report are the economic benefits created 

from the 12 ADHS corridor improvements, the

benefit/impact-cost analysis, and a summary of 

the conclusions and implications. The full details 

of the analysis are documented in a study volume 

entitled “Appalachian Development Highways:

Economic Impact Studies,” dated June 11, 1998.

KEY STUDY ISSUES

The study focuses specifically on the ability of the 

ADHS highways to contribute economic value and 

development to the Appalachian Region. Based 

on transportation data and an economic model, 

which utilizes the trans-portation data, the study 

addresses the economic impact that the improved 

ADHS corridors have had and will have on the 

Appalachian Region. 

As part of this analysis, systematic economic 

benefits and economic costs are presented based 

upon the travel efficiencies created from the

improved highways, which accrue to both

automobile and truck users who utilize the

improved facilities. These travel efficiencies are 

in the form of reduced travel time, reduced vehicle 

operating costs, and a reduced number of

accidents. The improved travel efficiency along 

the ADHS corridors ultimately leads to an

increase in economic production, job

opportunities, wages, population, and travel

benefits to the people and the communities the 

highways serve. A major objective is to quantify 

and present these impacts.
Executive Summary Report

ADHS Economic Evaluation 2

ADHS CORRIDORS INCLUDED IN THIS STUDY

This economic impact study focuses exclusively 

on those ADHS corridors and corridor segments 

that are already built and open to traffic. The 12 

corridors included and evaluated in this study are 

illustrated on the following map and labeled as 

A/A-1 (Georgia), B (North Carolina, Tennessee, 

Virginia, and Kentucky), D (Ohio and West

Virginia), E (West Virginia and Maryland), F

(Tennessee and Kentucky), I (Kentucky), J 

(Kentucky and Tennessee), L (West Virginia), P

(Pennsylvania), Q (Virginia and West Virginia), 

and T (Pennsylvania and New York).

THE ECONOMIC EVALUATION PROCESS

The effectiveness of the ADHS in creating

economic opportunity is estimated by the use of 

a regional economic model (the REMI model). 

The REMI model is a comprehensive economic 

forecasting and simulation model that has been 

employed in the evaluation of a wide array of

issues, including investments in infrastructure. 

Travel efficiency benefits (shorter travel times and 

reduced vehicle operating costs) are inputs into 

the REMI model which generate the regionally 

specific economic development impact estimates, 

as measured by jobs, wages and value-added.
Executive Summary Report

ADHS Economic Evaluation 3

ECONOMIC EFFICIENCY RESULTS 

The ADHS corridors were evaluated from both a 

travel efficiency perspective and a regional

economic development perspective. The table at 

the bottom of the page displays the results of

these evaluations. Included in the table is the net 

present value (NPV), the internal rate of return

(IRR), and the benefit/cost ratio (impact/cost ratio 

for the economic development perspective) of the 

ARC’s investment into the ADHS. From the

perspective of travel efficiency, the table indicates 

that: 

• The net present value created from the travel 

efficiencies is $755 million over the course of 

the study time frame.

• The constant dollar economic return is an

attractive 7.87%.

• The life cycle economic travel efficiency

benefits exceed the costs (benefit/cost is

1.18). For each $1.00 invested in the ADHS, 

the ADHS has yielded $1.18 in travel

efficiency benefits.

• The corridors as a whole seem to have been 

reasonable investments from a travel

efficiency perspective.

ECONOMIC DEVELOPMENT RESULTS

The evaluation of the corridors from the regional 

economic development perspective indicates that: 

• The net present value created from the travel 

efficiency is $1.344 billion over the course of 

the study time frame.

• The constant dollar economic return is a very 

attractive 8.29%. 

• The economic impacts exceed the costs

(impact/cost is 1.32). For each $1.00

invested in the ADHS, the ADHS has yielded 

$1.32 in economic development impacts. 

These impacts are also broken down in terms of 

the jobs, population, wages, and value added for 

the Region, and are displayed for three selected 

years in the following table:

Economic Development Impacts

Increases Due to 

ADHS

1975 1995 2015

Jobs

Population

Wages ($ million)

Value Added ($million)

6,100

14,690

$68

$271

16,270

30,420

$426

$1,002

42,190

84,480

$1,178

$2,975

ECONOMIC EVALUATION RESULTS

Perspective Net Present Value Internal Rate of Return Benefit or Impact/Cost 

Ratio

Economic Efficiency $755,743,000 7.87% 1.18

Regional Economic Development $1,344,376,000 8.29% 1.32

Evaluation Rules: The Appalachian Development Highway System is economically justified (has an economic rationale) if:

• The Net Present Value is positive (+).

• The Internal Rate of Return is 7.0% or greater.

• The Benefit/Cost Ratio is 1.0 or greater.

SOURCE: Wilbur Smith Associates
Executive Summary Report

ADHS Economic Evaluation 4

STUDY CONCLUSIONS

1. ADHS Has Created Jobs – By 1995 a net 

increase of 16,000 jobs are estimated to have 

been created that would not have existed

without the completed portions of the ADHS; 

it is estimated that these twelve corridors will, 

by the year 2015, have created a net increase 

of 42,000 Appalachian jobs. These jobs

occurred because the ADHS made the 

Region a better place to invest, live, and

work. 

2. ADHS Has Led to Increased Production -

The net increase in value added was $1 billion 

in 1995, and will increase to $2.9 billion by 

the year 2015. The total present value of this 

increased production is $6.9 billion (1965-

2025). Therefore, the ADHS has been

successful in increasing the Region’s

production, which results in increased job

opportunities and increased wages.

3. ADHS Has Created Efficiency - The ADHS 

highway corridors have created travel

efficiencies valued at $4.89 billion over the

1965-2025 period. Improved road conditions 

and access resulted in greater efficiency. By 

helping the Region to be more efficient and 

accessible, economic opportunity has been

expanded.

4. The Federal Investment is Warranted -

The economic rate of return from an efficiency 

perspective is 7.87 percent, and from an

economic development perspective is 8.29

percent per year (in inflation adjusted terms, 

the rate of return would be higher). This is a 

solid return on the investment. Over the life 

cycle of the ADHS, for each $1 invested, the 

return is $1.18 in efficiency benefits, and

$1.32 in economic impact benefits. These are 

indicative of a good use of tax payer funds.

5. All ADHS Corridors Yielded Benefits - All 

of the twelve completed ADHS corridors

produce efficiency benefits, from a corridorspecific low of $59 million to a corridor high of 

$1.2 billion. The individual corridor efficiency 

returns on investment range from 5.44

percent per year to 10.06 percent. While

some corridors are better than others, they all 

appear to have been reasonable investments.

6. Many People Have Benefited – While the 

most direct beneficiary of the ADHS is the

highway user, non-users of the highways

were also positively impacted—due to job

creation, better jobs (wages), and other

opportunities. Therefore, the ADHS highways 

have benefited the people of Appalachia, even 

those who do not use the specific highways.

7. The ADHS Has Made Appalachia More

Competitive – The ADHS highways have

helped the Appalachian Region to be better 

able to compete for economic opportunity. 

This competitiveness is valued at $2.7 billion 

over the 1965-2025 period. Clearly, the

ADHS has helped the Region to make

progress, even though the system is not yet 

complete.

The Appalachian Development Highway System, 

as conceived by the U.S. Congress, was intended 

to help the economy of the Appalachian Region. 

This study examined the ADHS, to determine

whether the completed portions of the ADHS have 

attained their economic development objective.

The ADHS cannot take credit for all growth, or 

even a majority of the growth, in Appalachia’s 

prosperity. But it can take credit for enough

growth (42,000 jobs, 84,000 people, $2.9 billion 

wages, $6.9 billion value added) to demonstrate 

that the ADHS has been a good investment in 

Appalachia’s, and America’s, future.

FOR FURTHER INFORMATION

Appalachian Regional Commission

1666 Connecticut Avenue, NW

Washington, DC 20235

or

Wilbur Smith Associates

1301 Gervais Street

Columbia, South Carolina 29201
i

REPORT CONTENTS

CHAPTER PAGE

1: INTRODUCTION AND OVERVIEW

The Appalachian Regional Commission ...................................................................1-1

The Appalachian Development Highway System .....................................................1-1

Studies of ADHS Effectiveness ................................................................................1-4

Key Issues Addressed in this Study..........................................................................1-5

ADHS Corridors Included in this Study .....................................................................1-6

2: DESCRIPTION OF THE ECONOMIC EVALUATION METHODOLOGY

The Economic Assessment Process.........................................................................2-1

Travel Efficiency Economic Benefits.........................................................................2-8

Economic Development Impacts on the Appalachian Region.................................2-10

ADHS Improvement Costs ......................................................................................2-21

Economic Benefit/Cost and Impact/Expenditure Analyses .....................................2-24

3: HIGHWAY AND TRAFFIC ANALYSIS

ADHS Corridors Included in Study............................................................................3-1

Corridor Analyses ...................................................................................................3-17

Corridor and Traffic Conclusions.............................................................................3-32

4: EFFICIENCY GAINS DUE TO THE ADHS

ADHS Corridors Influence Efficiency ........................................................................4-1

Travel Efficiency Benefits .........................................................................................4-5

Economic Efficiency Findings .................................................................................4-12

Economic Efficiency Benefit/Cost Results ..............................................................4-12

5: ECONOMIC IMPACTS DUE TO THE ADHS

Economic Development Overview ............................................................................5-1

Economic Development Impacts/Cost Results........................................................5-11

Economic Development Conclusions......................................................................5-18

6: ADHS COMPLETED SECTIONS ECONOMIC EVALUATION CONCLUSIONS

Economic Efficiency Benefits....................................................................................6-1

Economic Development Impacts...............................................................................6-2

Economic Evaluation Results....................................................................................6-6

Study Conclusions ....................................................................................................6-7

APPENDIX

A: Revised Economic Model ................................................................................... A-1

B: Travel Efficiency Benefit/Cost Calculations ........................................................ B-1

C: Economic Development Impacts By Year.......................................................... C-1
ii
ADHS Economic Evaluation 1-1

Chapter 1

INTRODUCTION AND OVERVIEW

In 1965, the U.S. Congress established the Appalachian Regional Commission (ARC). The 

overarching objective of the ARC is to promote economic and social development of the

Appalachian Region. Since its beginning, the ARC has carried out a wide range of programs, 

intended to foster Appalachian Region economic development and well being.

The Appalachian Development Highway System (ADHS) is one of the key economic

development programs of the Commission. That system of highways was conceived to 

comprise 26 corridors totaling 3,440 miles of highway, including 3,025 miles authorized by 

Congress for improvement. To date, some $4.6 billion has been spent on the ADHS, with 

approximately 75 percent complete.

Because additional funds will be needed to complete the ADHS, and because of the ADHS 

economic development objectives, it is appropriate to quantify what impact the completed

portions of the ADHS have had on the Appalachian Region.

The ARC sponsored this study which quantifies the economic benefits and impacts attributable 

to the ADHS. The benefits comprise the economic efficiency benefits and the impacts comprise 

economic development effects that can be reasonably attributed to the completed portions of 

the ADHS. 

The Appalachian Regional Commission is a federal-state partnership, comprised of all of West 

Virginia and portions of 12 other states from Mississippi to New York. 

Since the enactment of the Appalachian Regional Development Act of 1965, a combination of 

federal, state, local and private funding in excess of $15 billion has helped provide highways, 

hospitals, land conservation, mine land restoration, flood control and water resource

management, vocational education facilities, and sewage treatment works to the 21 million 

residents in the 399 counties of the Appalachian Region. Throughout the terms of seven US 

presidents, federal financial support has helped support the ARC to promote economic

development in the Region.

THE APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM

In its 1964 report to Congress, the President’s Appalachian Regional Commission (PARC) 

indicated that “...economic growth in Appalachia would not be possible until the Region’s 

isolation had been overcome.” The PARC report indicated that “the Interstate Highway System 

has largely bypassed the Appalachian Region, going through or around the Region’s rugged 

terrain as cost-effectively as possible.” As a result, areas of Appalachia remained isolated, 

many roads were”...narrow, with sharp switchback curves, steep grades, and short sight
Introduction

ADHS Economic Evaluation 1-2

distances. These characteristics made driving hazardous and discouraged commerce and 

economic development. “1

In carrying out the intent of Congress, the ARC has stressed the importance of having good 

Appalachian Region transportation access. The idea is that, by providing access and efficient 

transportation, the residents of Appalachia will be better able to compete for economic activity, 

which in turn will improve living standards throughout the Region.

An important part of the ARC-administered program is the Appalachian Development Highway 

System. The ADHS is not intended to replace or duplicate the state or local highway programs 

or systems; rather, the ARC highway funds are intended to complement, or supplement, the 

state funds in building a system of highways to provide access to areas with development 

potential in the Region.

The ADHS – The Appalachian Development Highway System (ADHS) is planned to comprise 

3,440-mile network of highways, with 3,025 miles authorized by Congress for improvement, 

serving the 13-state Appalachian Region, as shown on Exhibit 1-1. The letters on the ADHS 

corridors refer the official ARC corridor designations. More than 75 percent of the ADHS 

mileage is complete or under construction, mostly to four-lane standards, representing a public 

investment exceeding $4.6 billion. The system is part of an overall development strategy for the 

Appalachian Region initiated in the mid-1960s to help provide the transportation access 

essential to improving the Region’s economic position. As established by the U.S. Congress, 

the Appalachian Regional Commission (ARC) is the institutional body responsible for

developing the ADHS.

The cost of completing the ADHS is estimated to approach $8.5 billion, and ADHS advocates 

believe that completion of this highway system is vital to the Region. Sustaining financial 

support is crucial if the ADHS is to be completed. In the current environment of constrained 

public budgets, it becomes essential to evaluate the public benefit of each public program. 

Because the ADHS was established as an economic development tool, and because much of 

the ADHS is built, it is timely to measure what the completed portions of the ADHS have 

contributed to the program’s economic development objectives.

 

1

“Appalachian Development Highway System: Status Report,” Appalachian Regional Commission, 1996.
Introduction

ADHS Economic Evaluation 1-3
Introduction

ADHS Economic Evaluation 1-4

ADHS Objectives – Each of the 13 states involved in the Appalachian program have state 

highway systems that are planned, built, operated and funded by a combination of state and 

federal tax dollars. These state programs for the most part are intended to meet the travel 

needs in the state. State investment priorities typically depend on travel demand (as evidenced 

by traffic volumes), travel safety, roadway conditions and needs, etc.

The ADHS, as envisaged by Congress, is something different. The ADHS highways have 

economic development and social enhancement objectives which differ from the typical state 

program. The individual states of course are interested in economic development, but, given 

budgetary constraints, traffic safety, highway capacity deficiencies and highway maintenance 

often supercede economic development when difficult highway priorities are set.

The ADHS is somewhat unique as a highway in that its stated purpose is to stimulate economic 

development and opportunities for the residents of the Appalachian Region.

The ADHS Highway Corridors – In selecting and designating the 26 ADHS corridors, the 

Appalachian Regional Commission sought to approve a network of Development Highway

corridors that would: (1) link key centers in the Region to national markets, thus helping to 

make the corridor areas competitive for growth; (2) provide for more efficient flows of

commerce through the Region in order to enhance the development potential of isolated areas 

traversed by the new routes; (3) facilitate the commutation of people to new jobs and public 

services to be developed along the System; and (4) open up new sites for development.

To achieve this, each corridor was selected to accomplish one or more of the following:

(1) Major economic centers in Appalachia which were bypassed by the Interstate Highway 

System were to be linked to the Interstate System, restoring locational advantages which 

they had lost by being bypassed.

(2) Selected corridors were chosen to help “close the gap” between key markets on either 

side of Appalachia that were not linked by the Interstate System. The region could then 

capitalize on the alterations in flows of commerce which such additions to the national 

highway network might induce.

(3) Several corridors were selected to open up large areas of Appalachia with significant 

potential for recreation development.

(4) By constructing a new highway system through the more isolated sections of

Appalachia, it was also anticipated that commuting fields for the major job centers in and 

around Appalachia would be enlarged because more people would be able to travel 

greater distances in less time to the jobs and services being developed.

In other words, the purpose of the ARC highway program is economic development.
Introduction

ADHS Economic Evaluation 1-5

STUDIES OF ADHS EFFECTIVENESS 

A number of studies have examined and tracked economic development in Appalachia,

including development that has occurred in counties served by the ADHS corridors.

• 1987 Survey – An ARC survey of jobs in the Appalachian Region found that 81 percent 

of total job growth in Appalachia between 1980 and 1986 occurred in the 241

Appalachian counties served by an interstate highway and/or an ADHS corridor. 

Unemployment rates in interstate highway/ADHS corridor counties was 8.5 percent, in 

other Appalachian counties it was 10.0 percent. The implication is that highways and 

successful economic development go hand in hand.

• 1994 Professional Geographic Study – A study by Tyrell Moore, University of North 

Carolina, “...found a strong correlation between income growth and the presence of 

improved highways in Northern and Southern Appalachia. Central Appalachia had a 

weaker, but still positive, correlation...” Again, the implication that highways assist in 

the economic development process.

• 1995 National Science Foundation Study – This more rigorous study by Andrew 

Isserman, Professor of Economics and Geography at West Virginia University, analyzed 

population and income changes over a 20 year period in Appalachia and compared 

those changes with statistical “twin” counties elsewhere in the US. The study found that 

the Appalachian counties with ADHS corridors grew 69 percentage points faster in 

income, 6 percentage points faster in population, and 49 percentage points faster in 

earnings. The rural counties with ADHS corridors faired even better.

These three studies suggest that better economic growth occurred in counties with ADHS 

corridors than in counties without ADHS corridors. But, these previous studies were not able to 

address the questions “How much of this growth is due to the ADHS? Does the ADHS cause 

development, or are the highways and their counties’ growth coincidental?”

KEY ISSUES ADDRESSED IN THIS STUDY

This study addresses the issue of the ADHS highways themselves, and specifically what the 

highways contribute to economic growth and economic development. The study does not imply 

that all Appalachian growth is due to the highways; rather, the study focuses specifically on the 

ability of the highways to attract economic value and development, and the quantified

magnitude of that economic growth.

More specifically, this study seeks to address the following issues regarding the completed 

ADHS corridors:

• To what extent, and in what ways, do the ADHS corridors make the Appalachian 

Region more efficient?
Introduction

ADHS Economic Evaluation 1-6

• Has the ADHS directly or indirectly caused job opportunities retention and attraction in 

the Appalachian Region? How many job opportunities are believed attributable to the 

completed portions of the ADHS?

• Has the ADHS led to increased production in the Region? How much?

• Federal funds have been used to build the ADHS. Is the desired economic

development occurring? What magnitude of development?

• Based on the portion of economic benefits that can be quantified, what is the economic 

rate of return on the federal investment? Is it sufficient to indicate that this was a good 

use of tax payer funds?

• How do the various ADHS completed corridors compare, one with the others? Do they 

all appear to have been sound investments?

• To what extent have the ADHS corridors benefited the highway users? The non-users? 

Do people have to use the ADHS corridors in order to benefit from them?

• Have the completed ADHS corridors helped the Appalachian Region to compete on a 

more equal basis with other regions of the US for economic development?

One reason for this study is to gauge, in retrospect, the extent to which the completed portions 

of the ADHS have contributed to the economic well being of Appalachia. Implicitly, if the

completed corridor segments have succeeded, then it might logically follow that the remainder 

of the ADHS (the segments that are not yet funded and/or built) might similarly be successful 

with their economic development orientation.

ADHS CORRIDORS INCLUDED IN THIS STUDY

This study focuses exclusively on those ADHS corridors that are completely, or principally, built 

and open to traffic. The study does not include corridors that are 75% or less built. Twelve of 

the 26 ADHS corridors shown on Exhibit 1-2 meet this criterion. The 12 corridors evaluated in 

this study are these colored green on Exhibit 1-2. By including and analyzing only those 

corridors that are principally complete, it is possible to address the question “What economic 

impacts have resulted from the ADHS corridors that are already built and open to traffic?”
Introduction

ADHS Economic Evaluation 1-7
ADHS Economic Evaluation 2-1

Chapter 2

DESCRIPTION OF THE ECONOMIC EVALUATION METHODOLOGY

This is not a typical economic study of a highway. In a typical study, the road is not yet built, the 

economic impacts are estimated based on a planned highway, and the question being

addressed is whether or not the highway should be built. In this study, the highways that are 

being studied are already built and are already open to traffic. The study measures what 

economic impacts and benefits have occurred as a result of the completion of the highway 

corridors that were studied.

This study focuses on the portions of the ADHS that have already been built (12 of the 26 

corridors). Those ADHS highway segments that are not yet funded and/or not yet built are 

excluded from the analysis. Because the highways being studied are already built, the study 

analyses are much more certain than is typically the case with other highway studies. For 

example:

• The actual construction costs are known; they need not be estimated.

• The highway locations and alignments are known; they need not be planned.

• The highways are open to traffic and the traffic volumes are known; traffic need not be 

estimated.

Therefore, this study is conducted with much greater certainty than is the case with most other, 

more traditional studies.

The challenge in this study, in terms of estimating the economic contribution the highways make 

to the Appalachian Region, is to estimate what would have occurred in the areas of the Region 

impacted if these Appalachian Development Highway System (ADHS) corridors had not been 

built. The economic benefits and impacts analyzed in the study represent the economic 

differences between:

• The Appalachian economy with the ADHS highways having been built, compared with

• The Appalachian economy that would have existed if the ADHS highways had not been 

built.

The differences between these two scenarios comprise the net quantifiable economic

contribution, which the completed portions of the ADHS highways have made to the

Appalachian Region economy.

THE ECONOMIC ASSESSMENT PROCESS

A public investment in a series of highway corridors such as the ADHS is “economically

feasible” if the economy is better off with the investment than without it. Without question 

highways are significant assets to the people who live and work along the corridors. But the key 

issues addressed in this study are (1) the magnitude of overall transportation efficiency benefits 

believed attributable to the highway improvements, and (2) whether such efficiencies induce 

economic development and/or economic productivity within the Appalachian Region.
Economic Methodology

ADHS Economic Evaluation 2-2

Overall Economic Analysis Approach

Great care was taken in the selection of an economic impact methodology. Alternative methods 

were considered, but the one that was selected has been supported by FHWA.

Optional Approaches – A number of different approaches have been attempted in various 

studies, all with the goal of quantifying or otherwise depicting the economic gains believed 

attributable to highway construction. Some of these have been applied previously to the 

Appalachian Development Highway System.1 Others have been applied nationally, to the

national system of highways.2 In addition, there are a number of technical approaches that are 

available to address the economic questions.3

Travel Efficiency/Economic Development Approach – What was ultimately decided was to 

use an economic approach that is described in two places.4 FHWA in 1996 examined

alternative approaches to highway corridor economic analysis, and developed its “Good

Practices” report. That FHWA report states that the FHWA “...report is intended to supplement 

the Federal Highway Administration’s (FHWA’s) Procedural Guidelines for Highway Feasibility 

Studies to serve as a reference document on good practice. It provides a set of principles 

drawn from the best of recent highway and multimodal corridor studies, and directs attention to 

sources for more information on examples of good practice.”4

“The audience for this (FHWA Good Practices) report is intended to be all persons involved in 

highway corridor feasibility studies, including those who are developing work programs or

proposals, those who are performing the studies, and those who are overseeing the work as 

members of review committees. The primary audience is intended to be those involved in 

feasibility studies initiated as a result of Congressional action and administered by the FHWA. 

However, this report should also be useful to a secondary audience; namely, those involved in 

other highway corridor studies.”4

 

1

 “The Economic Effects of the Appalachian Regional Commission,” Andrew Isserman and Terance Rephann, 1995.

2

 “Economic Impacts of Federal-Aid Highway Investment: Productivity Impacts of Highway Investment,” 1996; and 

“Highway Infrastructure Investment and Job Generation,” U.S. Department of Transportation, 1996; and 

“Productivity and the Highway Network: A Look at the Economic Benefits to Industry of the Highway Network,” 

Federal Highway Administration, 1996.

3

 “AASHTO Red Book”—American Association of State Highway and Transportation Officials: A Manual on User 

Benefit Analysis of Highway and Bus Transit Improvements, 1977.

“HERS Manual”—Jack Faucett Associates, The Highway Economic Requirements System, Federal Highway 

Administration, US DOT, July 1991. (an update is scheduled for 1996-7.)

“Indiana Guide”—Major Corridor Investment-Benefit Analysis System, Cambridge Systematics and Bernardin 

Lochmueller for Indiana Dept. of Transportation, 1996.

“NCHRP 342”—D. Lewis: Primer on Transportation, Productivity and Economic Development, National 

Cooperative Highway Research Program, Transportation Research Board, August 1996.

“Road Investment to Foster Local Economic Development,” University of Iowa Public Policy Center, 1990.

“NCHRP 7-12”—Texas Transportation Institute: Microcomputer Evaluation of Highway User Benefits, National 

Cooperative Highway Research Program, Report 7-12, Transportation Research Board, 1993.

4

 “Examples of Good Practice: Highway Corridor Feasibility Studies,” Planning Programs Branch, FHWA, June 

1996; and “Iowa Guide”—Guide to the Economic Evaluation of Highway Projects, Wilbur Smith Associates for the 

Iowa Dept. of Transportation, 1993.
Economic Methodology

ADHS Economic Evaluation 2-3

“Most of the substance of this (FHWA Good Practices) report is drawn from five corridor

feasibility studies which were selected by FHWA staff because portions of each of the studies 

include examples of the best of current practice. The five corridors and the reference

documents, all of which were underway prior to development of FHWA’s guidelines, are:4

1. Chicago to Kansas City: Chicago/Kansas City Tollway Feasibility Study: Overview 

Report and Engineering Analysis; Howard Needles Tammen & Bergendorff, et al.; 

January 1990; and Financial Analysis; Price Waterhouse, et al., March 1990; for Federal 

Highway Administration, Illinois Department of Transportation, and Missouri Highway

and Transportation Department.4

2. St. Louis to St. Paul: St. Louis to St. Paul Corridor Feasibility and Necessity Study; 

Consultant’s Report to the States and Executive Summary; Wilbur Smith Associates; 

March 1990; for Federal Highway Administration, Iowa Department of Transportation, 

Illinois Department of Transportation, Minnesota Department of Transportation, and

Wisconsin Department of Transportation.4

3. U.S. Highway 20 in Iowa, from Sioux City to Fort Dodge: U.S. Highway 20 Corridor 

Development Study; Final Report and Executive Summary; Wilbur Smith Associates, et 

al,; December 1992; for Iowa Department of Transportation.4

4. Transamerica Transportation Corridor, from California to the Chesapeake Bay area: 

Transamerica Transportation Corridor – Transportation Options for the 21st Century 

Feasibility Study – Final Report; Wilbur Smith Associates and Howard Needles Tammen 

& Bergendorff; September 1994.4

5. Corridor 18, from Indianapolis to Houston: Corridor 18 Feasibility Study; Final Report 

and Executive Summary; Wilbur Smith Associates and HNTB Corporation; November 

1995; for Arkansas State Highway and Transportation Department.”4

The economic evaluation methodology described in the FHWA “Best Practices” study of 1996 

was used in this assessment of the completed portions of the Appalachian Development

Highway System. 

Economic Principles

Government is often asked to make highway investments for "economic development"

purposes. The rationale is that the area served by the highway will be better off due to greater 

transport efficiency, the possible attraction of new businesses, and the overall improved ability 

of the corridor(s) region to compete (with the rest of the country) for economic activity.

This study analyzes the completed portions of the ADHS, to determine what impact the

improvements to the highways have had on the Appalachian Region.

Definition of Economic Development - For purposes of this study, economic development is 

defined as "an increase in the prosperity and incomes of people and institutions.” Economic 

development of this nature in the Appalachian Region occurs when the incomes and products 
Economic Methodology

ADHS Economic Evaluation 2-4

generated in the Region increase. Improved highways can cause such increases to occur in 

either of two ways: more resources and/or greater efficiency.

• More Resources - If goods and services produced in the Appalachian Region (output) 

increase, more resources (land, labor, materials, capital) will be required which means 

that more people are employed, more incomes are earned and more profits are made. If 

the ADHS investment enables the retention of existing firms or the attraction of 

additional business to the Appalachian Region (new firms, or expanded firms), then the 

highway has aided the Region’s economic development process.

• Greater Efficiency - Even if the improved highway does not help to create increased 

output (more resources) in the Appalachian Region, it can still help economic

development by causing the Region's (and the Nation’s) output to be achieved at less 

total cost. Reduced transportation costs due to the highway improvement in this way 

yields increased prosperity and income.

The study finds that the completed portions of the ADHS (the 12 corridors) have accomplished 

both: the federally funded highways have enabled the attraction of "more resources" and they 

have created greater "efficiency.” As a result, the highway improvements have enabled/created 

some "economic development.” 

Economic Development Basis for a Feasible Highway Project - Highways are essentially 

"tools" used in transporting goods and people from one place to another. Investments in

highways contribute to economic development in that they lower transportation and/or logistics 

costs and/or improve people's perceptions of the corridor thereby causing them to want to 

settle/invest there, and/or divert and induce traffic. Such changes may be realized in numerous 

ways, including improved safety, decreases in fuel and other vehicle operation costs, revised 

logistics or agricultural or mining patterns, and reductions in noise or air pollution. 

Such changes that result from the ADHS may not only accrue to persons and businesses that 

use the highways. Lower transportation costs may be passed on to consumers as lower prices 

for consumer goods, to workers as higher wages, or to owners of businesses as higher net 

income. Persons may thus benefit from the ADHS highways without traveling on them.

It is important to keep in mind that for any of these benefits to occur, the highway must either 

have enabled significant reductions in transportation costs or cause revised perceptions of the 

region served by the highway. If the amount of these savings is small for each trip, if the 

number of vehicles using the highway is not sufficiently large, or if peoples' perceptions do not 

change significantly, the investment will not produce sufficient economic development impacts 

to make the investment worthwhile.

Treatment of "Transfer" Impacts - This study recognizes only "net" changes within the portion 

of the Appalachian Region impacted by the 12 study corridors. Transfers of economic value 

from one part of the Region to another part (from one group of people or firms to another group 

of people or firms within the Appalachian Region) are excluded from the calculations.

Under Investment vs. Over Investment - There are economic consequences of either under 

investing or over investing in highways. If the states or the Appalachian Regional Commission 
Economic Methodology

ADHS Economic Evaluation 2-5

under invest in highways, economic development will be inhibited because real and perceived 

travel costs will be greater; tourism and competitive position will be retarded, etc. There is, 

therefore, an economic cost associated with under investment in highways. If the states or ARC 

over-invest in highways, overall efficiency will suffer because those funds could have been put 

to better (more efficient) use elsewhere. There is therefore a net cost to society of either 

underinvesting, or overinvesting, in highways

Economic Model - The Regional Economic Models Incorporated (REMI) econometric model is 

used in this study to ascertain the magnitude of the economic development impacts believed 

attributable to the ADHS. Inputs into the model comprise cost savings to area businesses, 

increases in disposable income to area residents, increased roadside business revenues,

increased tourism revenues and construction cost expenditures.

Travel Efficiency and Economic Development

The two ways that a highway can impact an area economically (greater efficiency and more 

resources) are both analyzed in this study. Greater efficiency is calculated as travel efficiency 

benefits, and more resources are calculated in the form of economic development impacts.

• Travel Efficiency - Automobile users benefit from better highways due to faster average 

travel speeds (time savings), reduced accident rates (safety), and improved traffic flow 

(vehicle operating costs). Truck travel similarly may be faster, cheaper and more

reliable. These types of travel efficiency benefits are estimated in this study for the 

completed segments on each of the 12 ADHS study corridors.

• Economic Development – This impact type depicts how the highway improvements 

impact the region’s economy in terms of creating economic opportunity,

creating/retaining jobs, and creating value added. These are caused by:

Improved Competitive Position - Highway improvements sometimes remove an 

impediment to economic development. Reduced transportation costs and/or

better access can enable a region to better compete for economic activities, 

meaning that business activity is expanded in, or otherwise attracted to, the 

corridor’s economy.

Non-Business Travel – Vehicle operating cost savings for private personal travel 

result in an increase in disposable income (less spent on travel, more available to 

spend on other things).

Roadside Service Industries - The highway improvements may induce traffic 

(trips that otherwise would not be made), which will increase local revenues of 

roadside businesses such as gasoline stations, motels, restaurants and others.

Tourism - If the highway improvements cause additional visitors to be attracted to 

the region, the area's income and general prosperity will rise (over and above the 

Roadside Service Industries’ impacts).
Economic Methodology

ADHS Economic Evaluation 2-6

These types of economic development impact are presented for all 12 studied corridors 

combined. The economic development impacts are not presented on a corridor-specific 

basis.

The overall economic evaluation process as applied in this study is depicted in Exhibit 2-1. The 

chart shows that the traffic volumes and travel costs are tabulated both with and without the 

ADHS highways. For purposes of clarification, the travel efficiency improvements that result 

from the ADHS are referred to as benefits, and economic development improvements are 

referred to as impacts. The chart indicates that all the net highway improvements costs are 

compared with all quantifiable "net" travel efficiency benefits. These benefits and the overall 

traffic analysis provide the foundation for assessing the magnitude of economic development 

impacts that accrue to the Appalachian Region.

Another important distinction between the benefits and impacts is that the travel efficiency 

benefits are calculated from the national perspective, while the economic development impacts 

that are calculated from the Appalachian Region’s perspective. The rationale for this distinction 

is that the travel efficiency gains are net gains to society (no one loses, there is no transfer 

effect) while the economic development impacts accrue to businesses and residents in the 

impacted portions of the Appalachian Region and may be transfers from elsewhere in the 

U.S.A. (not necessarily a net gain to the entire U.S.A.).

Life Cycle Analysis Time Period 

To ensure evaluation consistency, a life cycle approach is used in this study. In most studies, 

travel efficiency benefit/cost analyses evaluate the project over a period of 20 to 30 years, which 

which is a suitable period of time over which to cover the construction and use of the road. 

Since the various segments of the 12 ADHS study corridors were authorized and built between 

1965 and 1995, a single 30-year analysis period is not acceptable. To ensure that the benefits 

of each segment of the 12 corridors is evaluated over a period of at least 30 years, the study 

period was extended through 2025. All ADHS corridor segments are evaluated through the 

year 2025, regardless of when they were built, 1965, 1980 or 1995.

For these reasons, the analysis of the completed segments of the 12 study corridors begins in 

the year of funding authorization (between 1965 and 1992) and continues through the year 

2025, which results in a 60-year analysis period, 1965 to 2025, for some highways. 

Quantifiable Economic Implications Only

It is important to stress that this study, in its estimates of benefits and impacts, only includes:

• Those implications that can be quantified, and

• Those implications that are economic in nature.

Therefore, this study examines only the quantifiable economic implications of the ADHS; it does 

not address the social, quality of life or other non-quantifiable impacts. There are likely many 

social and other positive ADHS impacts that are not included in this study.
Economic Methodology

ADHS Economic Evaluation 2-7

Exhibit 2-1
Economic Methodology

ADHS Economic Evaluation 2-8

Social Benefits Not Examined – For example, the ADHS likely has increased access to health 

care, education, cultural amenities and otherwise improved access to other social needs. 

These types of access benefits cannot be measured in economic terms and therefore are not 

included in this study.

Import Substitution Effects Not Included – This study methodology assumes that travel 

efficiency is the only net gain to the USA, and that the economic development impact for the 

Appalachian Region is a transfer effect nationally. But this is not necessarily the case. There 

may be economic development impacts to the U.S.A. that are not included. For example, better 

access to tourist destinations in Appalachia might cause a net increase in tourism nationally, or 

better access to Appalachian hardwood products might create a net gain for American

hardwoods (a benefit to the USA).

These are examples of ADHS implications that are not included as quantifiable economic 

benefits or impacts believed attributable to the ADHS. In this sense the benefit and impact 

estimates in this study could be viewed as conservative.

TRAVEL EFFICIENCY ECONOMIC BENEFITS

Transportation efficiency is a legitimate local corridor, regional, state and even national goal. If 

a road improvement creates road user cost savings that, over time, exceed the cost of the road 

improvement, then that road improvement should be implemented. Therefore, travel efficiency 

is relevant to the funding decision for Congress, the FHWA, the Appalachian Regional

Commission, the individual state departments of transportation, and local agencies.

The highway travel efficiency benefits due to ADHS improvements are of three types: value of 

travel time savings, vehicle operating cost savings, and accident cost savings. Such benefits 

are calculated for two vehicle types: cars and trucks. Travel efficiency benefits are calculated by 

corridor beginning in the year the segment was opened to traffic through the year 2025.

The calculation itself compares travel costs in the built scenario (with the ADHS in place) with 

travel cost in the non-built scenario (if the ADHS were not built). For this reason, comparable 

road data were needed for both scenarios.

Travel Time Savings

Most highway investments enable motorists to travel more quickly. There are potentially three 

different ways to reduce travel time: (1) Reducing mileage to reach one’s destination by offering 

a shorter route, (2) Increasing the speed at which one can travel by providing facilities with 

higher design standards, and (3) Reducing congestion by providing additional high capacity 

facilities. A methodology to take into account all three elements of time savings was developed.

It uses the results of the corridor surveys, which describe the ADHS corridors the way they are 

today, and the way they were before the ADHS was implemented. In effect, for each vehicle 

using one of the ADHS segments, travel times with and without the new improved highway are 

calculated and summarized. Travel times are calculated for each segment using the Highway 

Performance Monitoring System (HPMS)5 model methodology and data developed by FHWA. 

This methodology recognizes that travel time varies due to the design of the road, the speed 

limits in effect, and the level of congestion (expressed in terms of volume/capacity ratios). Travel 
Economic Methodology

ADHS Economic Evaluation 2-9

time also varies by type of vehicle (it takes longer for a truck to climb an upward grade or 

resume original speed when slowed down by congestion).

To include time savings in the transportation efficiency evaluation, it is necessary that a

purposes of this study, values of time based on average hourly wage rates, average occupancy 

and cargo values were developed using the FHWA methodology outlined in the Highway

Economic Requirements System (HERS)5. The resulting values of time are:

• $16.59 per on-the-clock auto hour (travel while on business);

• $7.64 per off-the-clock auto hour (commuter and non-business travel);

• $21.48 to $28.95 per truck hour depending on the type of truck.6

These values are used in this study, and sensitivity analyses are also conducted.

Vehicle Operating Cost Savings

The costs of operating motor vehicles are a significant portion of the total cost of transportation. 

Vehicle operating costs include a number of components, some of which are variable costs (use 

related), and others are fixed costs (insurance and license fees which typically do not vary with 

use). Only use-related costs -- engine oil, gasoline, maintenance, and tires -- are directly 

affected by an improved highway. Vehicle operating costs, like travel time, vary with the

characteristics of the trip being made including trip length, running speeds, and speed change 

cycles. Using the same data as for the travel time, vehicle operating costs with and without the 

ADHS were calculated. HPMS model data was used to develop the costs.6 With this 

methodology, vehicle operating costs vary with the length of the segments, the various speeds 

on different portion of the segments, and the type of vehicle. Excess vehicle operating costs due 

to speed change cycles are also calculated by type of vehicle.

Accident Reduction Cost Savings

Improvements in highway safety comprise another reason for building highways with higher 

design standards. Because a higher standard 4-lane roadway is safer than an older 2-lane 

lower standard road, many of the ADHS roadways reduce accident risk. National average injury 

rates by type of accident (fatal, injury, property damage only) and by type of highway facility 

were used to calculate accidents savings in the various corridors under study.7 These accident 

rates are shown on Exhibit 2-2.

 

5

 “Highway Performance Monitoring System (HPMS),” FHWA, 1994

6

 “Highway Performance Monitoring Systems Analytical Process (HPMS),” FHWA, 1987

7

 “Highway Statistics,” FHWA, 1994 and 1995
Economic Methodology

ADHS Economic Evaluation 2-10

Exhibit 2-2

ACCIDENT RATES BY HIGHWAY TYPE

Rate Per 100 Million Vehicle Miles of Travel

Accident Types: Fatalities Serious Injuries Other Injuries

Highway Lanes: 2 4 2 4 2 4

Rural Interstate 1.209 1.209 5.151 5.151 30.733 30.733

Rural Other Principal Arterial 2.458 2.300 12.211 10.990 73.822 66.439

Rural Minor Arterial 2.915 2.727 14.917 13.425 102.579 92.321

Rural Collector 3.285 3.038 17.367 15.338 135.354 121.305

Rural Local 3.855 3.607 19.331 17.398 198.845 178.960

Urban Interstate 0.626 0.626 4.858 4.858 67.177 67.177

Urban Other Freeway/Expressway 1.170 1.095 5.552 4.997 86.844 78.160

Urban Other Principal Arterial 1.494 1.397 17.281 15.553 214.497 193.048

Urban Minor Arterial 1.260 1.179 14.863 13.376 179.640 161.676

Urban Collector 1.070 1.001 14.334 12.901 142.775 128.497

Urban Local 1.741 1.628 18.198 16.378 286.084 257.431

Source: FHWA Highway Statistics and Consultant Calculations

To include the accident reduction benefits in the transportation efficiency evaluation, a monetary 

value was assigned to each type of accident. The accident monetary values used for this study 

are based on “The Economic Cost of Motor Vehicle Crashes,” National Highway Traffic Safety 

Administration (NHTSA) 1994 data.8

• $2,854,000 per fatality.

• $654,000 per seriously injured person.

• $20,600 per other injured person

• $1,600 per property damage only (PDO) vehicle

Total Travel Efficiency Benefits

The total efficiency benefits quantified in this study comprise the sum of the travel time savings, 

vehicle operating cost savings, and accident savings. Under the efficiency category, economic 

development impacts (job creation, etc.) are excluded.

ECONOMIC DEVELOPMENT IMPACTS ON APPALACHIAN REGION

Highway improvements of the ADHS type make travel faster, easier and more efficient. These 

improvements divert traffic from other highways; they also generate traffic. Such events are 

most welcome, not only because of the travel efficiencies and the improved perception of the 

area served by the highway, but also because of what these travel efficiencies and perceptions 

could mean to the local economy that is served by the highway. Whereas the previous section 

explained the methodology behind the estimation of travel efficiencies, this section explains the 

methods used to estimate the economic development impacts that are of value to the

Appalachian Region. 

 

8

“The Economic Cost of Motor Vehicle Crashes, ” National Highway Traffic Safety Administration (NHTSA), 

1994
Economic Methodology

ADHS Economic Evaluation 2-11

The REMI Economic Model

The economic development impact portion of the study relies on an inter-regional model of the 

US and the Appalachian Region referred to as “REMI.” REMI is a private sector model owned 

by Regional Economic Models, Inc. of Amherst, Massachusetts. This model package, which 

has previously been applied to a number of corridor evaluations, has the advantage that it is 

dynamic in the sense that it allows the primary impact region to interact with the rest of the 

United States. 

The REMI model is a comprehensive forecasting and simulation system useful for policy and 

investment analysis of a wide array of issues. While it does have some similarities to InputOutput models, it allows greater interaction of industries and it has the ability to estimate the 

proportion of an increase in demand for goods and services from a shock to the system that can 

be met by businesses within the region. Within the model, wages are responsive to changes in 

labor market conditions, migration is responsive to changes in expected income, and the share 

of local and export markets responds to changes in regional profitability and export costs. 

From a highway investment feasibility perspective, the study was interested in the extent of 

economic development that has occurred as a result of the highway improvement. Moreover, 

the degree of economic development, which may result from the highway, varies depending on 

the stage of total socioeconomic development for the impact region. That is, a remote small 

rural community with a relatively undeveloped labor pool may not have the full range of

socioeconomic conditions required to fully benefit from the economic development potential of a 

highway improvement. REMI accounts for this phenomenon in its estimates of economic 

impact. 

Modifications to REMI Model - Simulations with the model can be used to estimate the 

economic and demographic effects of policy and investment interventions such as economic 

development programs, infrastructure investments such as new highway construction, energy 

and natural resource conservation programs, state and local tax changes, and other policies. 

The policy simulation compares the performance of the corridor region after a policy intervention 

with the projected performance of the region based on national forecasts of industry growth and 

estimates of the shifting competitive position of each industry in the corridor region compared to 

that industry elsewhere in the country and elsewhere in the primary impact area. Because 

REMI is primarily an economic forecasting model, alterations to the inputs and the outputs had 

to be made in order to reflect the historical nature of this study. A description of these

alterations is discussed in Appendix A.

Primary Economic Impact Areas - The REMI model is compiled by county, which requires a 

clearly defined impact area. Although the ADHS spans a large geographic area, each study 

corridor is perceived to principally serve a primary impact area near the highway. For analysis 

purposes, the “principal impact” areas were defined as those counties through which one of the 

corridors passes plus those that lie within a ten-mile buffer of the new highways. These are 

included in the REMI primary impact study areas as shown in Exhibit 2-3. The selected impact 

area is mostly rural and excludes many of the major urban areas (Atlanta, Pittsburgh, and 

Cincinnati). Any area within the Appalachian Region that was not included in the primary impact 

area was considered a second region of non-primary impact counties. The REMI primary 

impact area includes 165 of the total 399 counties in the Appalachian Region. The other 234 

counties comprise non-primary Appalachian Region counties.
Economic Methodology

ADHS Economic Evaluation 2-12

Exhibit 2-3

REMI MODEL IMPACT REGIONS

Primary Impact Counties and Rest of Appalachian Region
Economic Methodology

ADHS Economic Evaluation 2-13

REMI Model Inputs - In the following pages, the method in which the economic impacts are 

estimated is described. The impacts derived from an improved competitive position, increased 

roadside services, and additional dollars spent on tourist related businesses are based upon 

travel estimates derived from the traffic forecast model used in the study. The method used in 

the calculation of REMI model outputs for the ADHS system is displayed in Exhibit 2-4.

Indicators of Economic Development Impact

The ADHS investments are believed to impact the Appalachian Region economy in numerous 

“economic development” ways. In order to recognize these impacts in a consistent fashion, a 

single set of "impact indicators" were used. These are all produced by the REMI model, and are 

as follows:

• Value Added – Dollar value of increased Regional product believed attributable to the 

completed portions of the ADHS. 

• Employment – Net change in Appalachian Region jobs believed attributable to the

completed portions of the ADHS.

• Wages - Total increases in payroll costs (wages and salaries and benefits) paid to those 

increased jobs.

• Population - Total population dependent on the new jobs created by the completed 

portions of the ADHS.

All monetary calculations are expressed at constant 1995 price levels (unless otherwise stated).

Direct Measures of ADHS Economic Development Impact

The fact that the study’s 12 ADHS corridors have been built and are operational has caused a 

number of “direct impacts” to have occurred. These direct impacts include those items that can 

be measured using available information. It is these direct impacts which are input into the 

REMI model to estimate the total economic development impacts believed attributable to the 

ADHS. Four such direct impacts were estimated in this study. These are:

• Competitive Position – Improved access, revised perceptions of an area, and

reductions in transportation time and cost make the corridor areas more attractive, and 

can lead to reduced costs of production, which in turn lead to marginally reduced prices 

and/or increased profits, which can lead to increased production (firm expansion and/or 

attraction of new firms), which in turn generates economic impact value. Efficiencies of 

this type are input into the REMI model. 

• Roadside Service Industries – Increased traffic due to the highway improvements 

generally increases local sales at roadside businesses (restaurants, gasoline stations, 

motels, and other businesses that cater to highway users). These increased sales are 

input into the REMI model, to the extent that they exist. 
Economic Methodology

ADHS Economic Evaluation 2-14
Economic Methodology

ADHS Economic Evaluation 2-15

• Tourism - Highway improvements of the scale of the ADHS help to attract additional 

visitors to the area over and above the Roadside Service Industry impacts. Such 

travel and tourism impacts pertain to visitors who choose to visit the area after the 

road improvement because of the improved access. This direct increase in tourism 

expenditures is also input into the REMI model.

• Highway Construction - The act of spending money to build the highway is of 

immediate economic impact to the region. These impacts are temporary in nature, 

since they primarily exist during the construction period and dissipate after road 

construction (when the highway is open to traffic). These "direct" impacts of highway 

construction are calculated and are run through the REMI model, but they should not 

be used as evidence that the highway improvements are feasible. Therefore, these 

impacts are not included in the calculation of the impact/expenditure ratio.

All four of the above identified “direct impacts” are estimated in the study for each of the 12 

corridors, based on the traffic models and on secondary data. However, they are not presented 

on a corridor-specific basis. Each is described in greater detail below.

Competitive Position Impacts 

There is a desire for the Appalachian Region, and its individual corridor regions, to expand 

existing businesses, to attract new businesses, and to diversify the area's economic base. To 

attract business activity to the Appalachian Region, the Region must be competitive with other 

areas of the USA.

The question arises as to what extent the ADHS investments impact the businesses already in 

the Region. A related question is what the highways could do to help foster growth of other, 

emerging industries. It is clear that competition is great among regions of the USA to maintain 

as high a level of economic activity as possible and to attract activities demonstrating growth 

potential nationally. Keeping transportation costs as low as possible is one action government 

can take to make a region more competitive.

Exhibit 2-5 presents a sequential flow of activities involved in moving from the ADHS highway 

improvements to the associated economic impact in terms of what they do for competitive 

position. The activities are described as follows:

1. The ADHS Highways Are Built - The act of building the improved highways has a 

short-term economic impact; that impact is assessed in this study.

2. The ADHS Is Used - The improved highway is used by existing and induced traffic. 

Because the highways are already built, the extent of ADHS use is known.

3. Reduced Transportation Cost - The highway improvements lead to increased travel 

efficiency in the form of reduced travel time, increased travel reliability, reduced

accidents and revised vehicle operating costs. The efficiencies themselves are

quantified in the "Travel Efficiency Analyses" for cars and trucks.
Economic Methodology

ADHS Economic Evaluation 2-16
Economic Methodology

ADHS Economic Evaluation 2-17

4. Reduced Costs of Doing Business in Corridor - Transportation cost is one factor in 

the cost of doing business in the Appalachian Region. If transportation costs, especially 

trucking costs and business travel costs, decline in the corridor, this means that the total 

cost of doing business in the corridor will also decline slightly.

5. Reduced Prices of Goods and Services - If costs of production in Appalachia decline 

due to transportation cost reductions, the result will be reduced prices of goods and 

services, or increased profits, or both. Such reductions apply to goods produced in the 

Appalachian Region as well as goods shipped into the Region.

6. Increased Competitiveness of Appalachian Region's Goods and Services - With 

slightly reduced costs, and therefore prices, the goods and services produced in the 

region should be slightly more competitive with the ADHS than without it.

7. Increased Sales - If the Appalachian Region's goods and services become more 

competitive due to price decreases, the region's businesses should be able to make 

additional sales of those goods and services.

8. Increased Production - If sales increase production of goods and services will increase 

by a like amount.

9. Increased Economic Impact - Increased production means that more of the

Appalachian Region’s people are employed, more income is earned, and economic 

activity expands.

These types of competitive position changes are calculated for the 12 corridors as a whole. To 

estimate these impacts, the vehicle operating cost and time savings of truck and business 

related automobile traffic for traffic that originates and/or terminates in the Region are estimated.

For purposes of the REMI analysis, the portion of cost savings, in terms of travel time savings 

and vehicle operating cost savings, for business related trips9 are placed into the REMI model 

as cost savings across all of the different industries for the Appalachian Region. These cost 

savings must be broken down into benefits to the direct impact area (referred to as the ARC 

region) and benefits for indirect impact areas (referred to as the Non-ARC region). For 

example, when a business located in the Appalachian Region transports goods along an

improved study corridor, any cost savings incurred help make the business more competitive. 

Conversely, when a business that is not located in the region ships goods through the region, 

travel efficiency benefits associated with the highway improvements should not be accounted 

for in the competitive position impacts because the savings accrue to businesses outside the 

region. The three trip type variations of Region and non-Region trip movements are

diagrammed in Exhibit 2-6.

 

9

 While all truck trips can be considered business trips, only a portion of auto trips can be considered business trips. 

According to the 1990 Nationwide Transportation Survey, 13.3 percent of all auto trips are for business purposes. 

This percent was used in this study.
Economic Methodology

ADHS Economic Evaluation 2-18

These cost savings are placed in the REMI model in the year that the cost savings occur. To 

distribute these costs savings across the different industries, a proxy is established for the 

importance of each of the industries represented in the Appalachia Region. The proxy is based 

upon the number of employees each of the industries has of the total employees for the region 

in a base year of 1995. Based on this proportion, each industry receives a portion of the cost 

savings as an input into the REMI model. For instance, mining has 2.2 percent of the total 

employees for the Appalachia Region. Therefore, mining receives 2.2 percent of the total cost 

savings for each of the years under examination.

• If a trip begins and ends in the Appalachian Region, 100 percent of the travel

efficiency benefits accrue to residents of the Region and are input into the economic 

development analysis.

• If only one trip end is in the Appalachian Region, only 50 percent of the travel

efficiency benefits are considered as input into the economic development analysis 

since it is assumed that half of these trip makers reside outside of the Appalachian 

Region.

• If a trip neither begins nor ends in the Appalachian Region, zero percent of the travel 
Economic Methodology

ADHS Economic Evaluation 2-19

efficiency benefits are considered as input into the economic development analysis 

because these benefits accrue to people who reside outside of the Region.

To estimate the distribution of these three types of trips, surveys from previous studies with 

similar road types were used.10 It was established that 92.7 percent of all auto trips can be 

classified as ARC auto trips while 79.85 percent of all truck trips can be classified as ARC trips. 

Based upon these estimates of trips that are business related and can be classified as ARC 

trips, the values of travel time savings and VOC savings are placed into REMI as cost savings 

across the various industries of REMI.11

Once again, due to the historical nature of the study, savings had to be placed into REMI with 

some adjustments since REMI is usually a foreword-forecasting model. See Appendix A for 

details of the adjustments process. 

Roadside Service Impacts

A safer and more travel efficient highway system in the Appalachian Region should lead to an 

increase in the volume of traffic by inducing traffic to these roads. An increased volume of traffic 

creates an increase in the volume of sales for roadside businesses including motels,

restaurants, gasoline stations, and other businesses that cater to highway users. The impacts 

from the roadside expenditures are considered to be net benefits to the corridor region. The 

volume of traffic induced onto the roads is based upon the existing traffic volumes (in terms of 

VMT) and is assumed to be 5 percent of the total traffic (VMT). Of this induced traffic, it was 

estimated that 10 percent of the traffic is from non-residents and 90 percent is from resident 

traffic. To avoid double counting, 8 percentage points of the 10 percentage points of nonresidents is considered transient visitors while the remaining 2 percentage points is considered 

destination visitors.12 The VMT created by the 8 percent of non-resident visitors plus the 90 

percent of resident visitors is the basis for deriving the roadside services REMI inputs.

 

10 The estimate for the breakdown of trips was obtained from a survey of similar rural roads in the U.S 

Highway 20 Study Corridor Development Study, Iowa Department of Transportation. This breakdown of 

trips could be viewed as conservative for a number of reasons. First, the survey examined the proportion 

of trips that have origin and destination points within the State of Iowa, which is a much smaller area than 

is the Appalachian Region (Iowa has 55,965 square miles while the counties that make up the 

Appalachian Region have 185,268 square miles.) Second, the points at which the traffic was surveyed in 

this study are near the borders of Nebraska and South Dakota and presumably, would have a much 

higher percent of trips that either begins or ends outside the state than a road in the center of that state or 

the center of the Appalachian Region.

11 The cost savings are appropriated to each of the industries in the REMI model based upon the 

importance of each of the industries to the Appalachian regional economy. A simple example might 

clarify this point. If it is determined that a new road could create $1000 of savings, and there were only 

five industries within a region each with 20 percent of the employment of the region, than each industry 

would receive $200 worth of cost savings. The importance of the industries is based on the proportion of 

total employment within each industry. 

12 The 2 percent is based on the 1990 Nationwide Personal Transportation Survey which estimated that 2 

percent of VMT is for the purpose of vacation.
Economic Methodology

ADHS Economic Evaluation 2-20

To estimate the inputs for REMI from the roadside expenditures to the Appalachian Region, an 

expenditure per VMT mile was estimated. Data from surveys in previous studies were utilized 

to gain an estimate of the roadside expenditures per VMT. These surveys suggest that the 

roadside service impacts from road improvements is 0.193 cents per VMT.13 These costs by 

expenditure type are shown in Exhibit 2-7.

Exhibit 2-7

ROADSIDE EXPENDITURE RATES

Expenditure Type Expenditure per VMT

Motel $0.023

Restaurant 0.021

Gasoline 0.072

Other Retail 0.077

Total $0.193

 

VMT = Vehicle Miles of Travel

These direct impacts per VMT are multiplied by the induced VMT (from residents and nonresidents) to gain a value of inputs for the roadside services impacts. 

Tourism

The Appalachian Region is attractive to visitors for many reasons, including its ski areas, fishing 

opportunities, scenic vistas, mountains, and lakes that are part of a network of trails and scenic 

roads. Tourism can create a substantial impact on a region through money expended on hotels, 

summer homes, restaurants, gas stations, gift shops, etc. By creating safe and efficient roads, 

a region can enjoy greater accessibility and have an added economic impact through an

increase in the volume of tourists. Based on the 1990 Nationwide Transportation Survey

produced by the FHWA, it is estimated that two percent of VMT is vacation related. Therefore, 

two percent of the induced VMT was assumed to be tourist related. To establish the impact that 

tourists have on an area, a regression was conducted to derive a multiplier per VMT for tourist 

 

13 These expenditures per VMT are based on an analysis from a previous study called St. Louis to St. 

Paul Corridor Feasibility Study, 1990. In this study, expenditures per VMT were estimated, and explained 

below. These values were inflated to 1995 levels. 

• It was assumed that people stay at motels if they drive 500 miles. Motels cost $50, or 10 cents 

per VMT. Assume only 20 percent of diverted or induced traffic stays in a motel. Impact per VMT 

is therefore 2 cents per VMT. 

• If people traveling spend $20 per person day, and there are 1.6 people per vehicle, and they 

travel 500 miles, the cost is 6 cents per VMT. If only 30 percent of the travelers stop for food (the 

other trips are shorter, not involving restaurants), the expenditure per VMT is 1.8 cents. 

• If fuel costs $1.25 gallon, at 20-miles/ gallon, the gross expenditures is 6.2 cents per VMT. 

• Vehicle drivers also pay other vehicle user costs (oil, tires, maintenance), and buy things (gifts, 

other retail). These expenditures are estimated at 6.7 cents per VMT. 
Economic Methodology

ADHS Economic Evaluation 2-21

traffic14. The tourist VMT was multiplied by this derived multiplier to gain the value of inputs for 

tourism. The output of this calculation was included in REMI as an input to derive an economic 

impact of tourism created by the improved roads.

Highway Construction Impacts

The very act of spending large sums of externally generated (federal) construction money in the 

Appalachian Region also is of economic value to the Region, since contractors and construction

workers are hired, gravel is purchased, etc. Economic value created in the Appalachian Region 

due to the act of spending such construction funds in the ADHS corridors was estimated.

Data concerning each corridor’s capital costs were examined in terms of construction cost and 

right-of-way cost. The construction costs were treated as increases in final demand and input 

into the REMI model. The right-of-way costs were treated as transfers and not included. The 

construction costs were assumed spent, initially, within the Appalachian Region. The economic 

impacts due to the act of construction comprise the monies spent in the corridor and the flow of 

those monies in terms of respending. The impacts include the labor and expenses associated 

with planning, design and construction, plus the respending of those funds to the extent that 

such respending occurs within the Appalachian Region.15

ADHS IMPROVEMENT COSTS

The cost side of the cost-benefit calculation includes two costs: 1) the “capital costs” of

constructing each ADHS completed highway segment, and 2) the annual change in highway 

administration, operation, and maintenance costs due to the new ADHS highways. 

• Capital Cost - Capital costs comprise the actual funding incurred by the Appalachian 

Regional Commission in improving the road sections. This includes all funds expended 

from the ARC budget relative to the planning, design, and construction.

• Road Maintenance Cost - Once the ADHS highway improvements were in place, there 

is more road to maintain than previously. The resulting net change in maintenance and 

operations cost is included as a net new cost attributable to the ADHS highway

investments.

Capital Costs

 

14 The regression analysis ran a series of regressions in which dollars spent on different tourist related 

service was the dependent variables, while the independent variable was the VMT of the 12 corridors. By 

using the regression analysis, a correlation between VMT and dollars spent on tourist services was 

established and this correlation is represented by the coefficients in the regression analysis. These 

coefficients were multiplied times the induced VMT on the 12 corridors to gain the value of inputs for 

tourism in REMI.

15The construction impacts should only be used to indicate the extent to which the region might benefit 

economically from the attraction of federal funding to the Region. They should not be used to try to justify 

that federal expenditure. 
Economic Methodology

ADHS Economic Evaluation 2-22

Exhibit 2-8 lists the ADHS costs used in this study. The construction costs (current) depict the 

total capital cost expenditures of the various years summed, at the price levels appropriate for 

the years when the expenditures were authorized (current price levels). The construction costs 

(Constant 1995) are the same costs expressed at Constant 1995 price levels. The current costs 

were converted to Constant 1995 price levels using the Highway Construction Cost Index.

Exhibit 2-8 also lists the number of traffic lanes before and after the ADHS. It indicates that 

many of the corridors were expanded from 2-lane highways to 4-lane highways. The exhibit 

then identifies the average ADHS construction costs per added lane mile and per total lane mile, 

all expressed at Constant 1995 price levels.

Exhibit 2-8

ADHS Construction Cost Comparisons

Corridor Construction Costs ($000)1

 Current Constant 1995

Corridor

Length 

(miles)

Average No. Lanes

Before After

Average Construction cost per2

 1995 1995

Added Lane mile Lane Miles

A/A1 $54,989 $113,911 30.4 2.3 4.0 $1,150 $489

B $927,866 $1,825,251 249.4 2.2 4.0 $2,013 $906

D $308,346 $843,689 189.8 2.0 4.0 $1,417 $708

E $430,702 $903,113 109.2 2.0 4.0 $2,209 $1,105

F $147,539 $350,560 99.3 2.0 3.0 $1,954 $651

I $100,432 $256,341 59.9 2.0 3.0 $9,137 $1,192

J $379,704 $630,414 214.5 2.0 3.0 $1,228 $409

L $167,165 $457,946 60.5 2.1 4.0 $2,349 $1,116

P $207,228 $472,046 54.7 2.1 4.0 $2,482 $1,179

Q $235,249 $579,656 129.8 2.0 4.0 $1,264 $632

T $568,056 $1,256,350 220.3 2.2 4.0 $1,709 $769

All Corridors $3,527,277 $7,689,277 1,417.8 2.1 3.7 $1,824 $789

1) Total capital investment in the ADHS corridor. “Current“ dollars are the actual expenditures by year summed over the period 

1965-1995. “Constant” dollars

2) Constant 1995 construction costs divided by number of new ADHS lane miles built and divided by total lane miles in the corridor.
Economic Methodology

ADHS Economic Evaluation 2-23

Annual Maintenance Costs

The annual estimated increase in annual highway maintenance costs were also included in the 

ADHS evaluation. These annual maintenance costs were estimated based on maintenance 

costs per functional class reported in “Highway Statistics,” FHWA. The average of 1993, 1994 

and 1995 maintenance costs in $1995 were used. These unit costs are listed in Exhibit 2-9.

Exhibit 2-9

HIGHWAY MAINTENANCE COSTS PER LANE MILE

(1995$, Thousands)

Rural Interstate $11.887

Rural Other Principal Arterial 3.957

Rural Minor Arterial 3.426

Rural Collector 3.557

Rural Local 2.949

Urban Interstate 6.834

Urban Other Freeway/Expressway 10.091

Urban Other Principal Arterial 4.916

Urban Minor Arterial 7.809

Urban Collector 3.957

Urban Local 3.957

Total Costs Present Value

The present value of the net cost increase for each corridor are listed in Exhibit 2-10. These 

are used in the study’s economic benefit/cost analysis.

Exhibit 2-10

TOTAL PRESENT VALUE COSTS (a)

(1995$, Thousands)

Corridor

Construction

Costs

Maintenance

Costs Total

A/A1

B

D

E

F

I

J

L

P

Q

T

$ 55,318

 879,597

 517,035

 444,194

 189,274

 161,546

 251,514

 264,599

 245,423

 320,695

 649,074

$4,119

23,972

20,711

38,331

4,729

2,645

11,865

5,460

12,507

7,468

28,723

$59,437

903,569

537,746

482,524

194,003

164,191

263,380

270,059

257,930

328,163

677,797

Total $3,978,268 $160,530 $4,138,798

(a) See Appendix B for the tabulation of these costs.
Economic Methodology

ADHS Economic Evaluation 2-24

ECONOMIC BENEFIT/COST AND IMPACT/EXPENDITURE ANALYSES

This study’s methodology indicates that the ADHS could help the Appalachian Region economy 

in two quantifiable ways:

• Benefits – Monetary value of travel efficiencies (vehicle operating cost, travel time, and 

accident savings) accruing to the economy; and

• Impacts – Economic development impacts (jobs, value added, etc.) accruing to the 

Appalachian Region.

The totals for these two indicators of economic consequences should not be added together; 

adding these together would be to double count the economic consequences of the ADHS. 

Instead, only selected portions can be added together, as done in Chapter 5.

But the benefits and impacts by themselves only indicate that there were positive economic 

consequences due to the ADHS. To indicate whether or not the ADHS was a prudent use of 

federal dollars, it is necessary that the economic costs to society of building and maintaining the 

ADHS be compared with the economic benefits or impacts derived.

This comparison is accomplished in this study by conducting a benefit/cost comparison, initially 

by comparing the economic benefits (efficiencies) with the ADHS costs, then by comparing the 

economic impacts (value added) with the ADHS costs.

Excluded from the benefit/cost calculations are the road improvement implications that cannot 

be tabulated in monetary terms (environmental or social implications, impacts on other modes of 

transportation, etc.). As a result, the economic benefit/cost calculations should be important 

relative to interpretations of how well the ADHS has performed, but should not be viewed as the 

only criterion.

Travel Efficiency Benefit/Cost Ratio

A benefit/cost approach is used to compare the net economic costs with the net travel efficiency 

benefits, in the form of a benefit/cost ratio. This ratio is similar to those used in other

conventional studies when the road is not yet built, but is superior to the normal ratios in three 

important ways:

1. The benefits are based on what has already actually occurred (since the study highways 

are built), rather than what is estimated to occur if the corridors were built;

2. The benefits are based on actual 1995 traffic, and therefore are more accurate than 

benefits based on forecasted traffic;

3. The costs are actual costs rather than estimates.

Other than these differences, the ADHS benefit/cost ratios are similar to other highway

feasibility studies where the analysis is conducted before the highway is built.
Economic Methodology

ADHS Economic Evaluation 2-25

Life Cycle Benefit/Cost Approach

The 30-year construction period and limited historical traffic data complicates the process of 

presenting the study findings. Typically, study results are presented over the life cycle of the 

project, 20 or 30 years. The life cycle method sums the constant dollar value of all costs and 

benefits by the year they were incurred and discounts them by the Office of Management and 

Budget (OMB) discount rate of 7.0 percent. The results are then presented by a number of 

feasibility indicators that include:

• Net Present Value – All costs and benefits in future years are discounted back to the 

base year using the adopted discount rate. The future stream of discounted costs are 

subtracted from the future stream of discounted benefits. If the sum of the discounted 

benefits is greater than the sum of the discounted costs, the “net present value” is 

positive and the highway improvement is deemed to be “economically feasible” in terms 

of travel efficiency.

• Discounted Benefit/Cost Ratio – After the future streams of costs and benefits are 

discounted, the sum of the discounted benefits is divided by the sum of the discounted 

costs. If the result is 1.0 or greater, the highway improvement is “economically feasible” 

from a travel efficiency perspective.

• Internal Rate of Return - This calculation determines that discount rate at which the 

net present value difference between costs and benefits is zero. If the rate of return, 

expressed as a percentage, is equal to or greater than the adopted discount rate, then 

the highway improvement is deemed to be “economically feasible” in terms of travel 

efficiency.

Economic Impact/Cost Ratio

The value-added impacts estimated to accrue to the Appalachian Region are also divided by the 

costs to obtain an “Impact/Cost Ratio.” In effect, this divides Regional Impacts by National 

Costs. Therefore, it is not a true benefit/cost, since the numerator beneficiary is different than 

the denominator who is paying the cost. Nevertheless, this ratio is useful in visualizing the 

extent to which federal funds are helping the Appalachian Region.
ADHS Economic Evaluation 3-1

Chapter 3

HIGHWAY AND TRAFFIC ANALYSIS

This study addresses the question “To what extent have the ADHS corridors that are already 

built and open to traffic attained their economic objectives? To answer this question, the study 

identified and documented those ADHS corridors that were principally complete.

This Chapter describes the corridors that are included in the study in terms of location, their 

physical and operational characteristics before and after the ADHS improvements, and the traffic 

which uses the ADHS highways. These physical and operational characteristics provide the 

basis for the economic analyses.

ADHS CORRIDORS INCLUDED IN STUDY

The 26 ADHS corridors are in various stages of completion, ranging from only partially complete 

to being almost complete. In other words, the study could not simply examine the entire system 

or those corridors that are complete. At the same time, a process was needed that would not 

unfairly distort the study results.

Corridor Selection Criteria

To determine which corridors were most appropriate for analysis, one single criterion was 

selected. That is:

Corridor Selection Criterion

Each ADHS highway corridor that, end-to-end, was 75% or more complete 

(in terms of total corridor length) as of January 1, 1995, was selected for 

inclusion in the study.

Within this criterion it is recognized that each corridor is not 100 percent complete. As a result, 

the highway sections that were not built prior to 1995 were also excluded from the analysis. In 

this way only the sections built and open to traffic by January 1, 1995, were included for both 

cost and economic evaluation purposes.

The Studied ADHS Corridors

Upon examination, it was determined that twelve of the 26 ADHS highway corridors met the 75 

percent completion criterion. These are located in 10 of the 13 states in the ARC Region--

Georgia, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee,

Virginia and West Virginia. The selected twelve ADHS corridors included in the study are shown 

on Exhibit 3-1 and are as follows: 
Highway and Traffic Analyses

ADHS Economic Evaluation 3-2

Exhibit 3-1

Study Corridors

Appalachian Development Highway Systems
Highway and Traffic Analyses

ADHS Economic Evaluation 3-3

Study Corridors

• A/A-1 in Georgia

• B in North Carolina, Tennessee, Virginia and Kentucky

• D in Ohio and West Virginia

• E in West Virginia and Maryland

• F in Tennessee and Kentucky

• I in Kentucky

• J in Kentucky and Tennessee

• L in West Virginia

• P in Pennsylvania

• Q in Virginia and West Virginia

• T in Pennsylvania and New York

But even these corridors are not completely built. Documentation review determined which 

sections of which corridors were built prior to 1995. Only these sections are included in the 

study. The final “Study Corridors” include only those portions of the selected ADHS corridors that 

were completed and open to traffic before 1995. Exhibit 3-2 identifies the final Study Corridors 

in terms of beginning and ending points and mileage. This exhibit indicates that this study 

focuses on 1,417.8 miles (47%) of the total envisaged ADHS system of 3,025 miles. 

Corridor Descriptions

The twelve ADHS corridors are depicted on Exhibits 3-3 through 3-13. Those segments 

colored green are the segments that are included in the cost and economic impact calculations. 

Those segments colored orange are in the corridor but were not included in the analysis either 

because they were not built prior to 1995 or because they were built using other than ARC funds. 

By making these exclusions, the study was able to focus only in those highway sections that 

were built prior to 1995 using Appalachian Regional Commission administered funds.

The With and Without ADHS Scenarios

In order to estimate the economic impacts due to the ADHS, it is necessary to compare the “with 

ADHS” situation to the “without ADHS” situation. In other words, what is quantified and

measured in this study is the economic difference between what occurred with the ADHS 

compared with what would have occurred without the ADHS.

With ADHS Scenario - The highways are already built. Therefore, the “with ADHS” scenario is 

the 1995 existing highway system and that system’s land use and traffic level. The with ADHS 

scenario includes the highways on Exhibits 3-3 through 3-13 listed as “With ADHS

Improvements.”
Highway and Traffic Analyses

ADHS Economic Evaluation 3-4

Exhibit 3-2

ADHS CORRIDORS INCLUDED IN THIS ECONOMIC STUDY

Study

Corridors States From To

Miles 

Studied

A & A-1 Georgia Forsyth County Line, GA GA 60, South of 

Dahlonega, GA

30.4

B North Carolina,

Tennessee,

Virginia and

Kentucky

I-40, Asheville, NC Ohio River Crossing

South of Portsmouth, OH

249.4

D Ohio and West

Virginia

Batavia, OH

I-77, Parkersburg, WV

Meigs/Athens Co. Line, 

OH

I-79 Clarksburg, WV

189.8

E West Virginia

And Maryland

I-79, Morgantown, WV I-70, Hancock, MD 109.2

F Tennessee and

Kentucky

I-75, Caryville, TN Corridor B (US 23) at

Jenkins, KY

99.3

I Kentucky Corridor F (US 119) at

Whitesburg, KY

State Route 30 at

Jackson, KY

59.9

J Tennessee and

Kentucky

I-124, Chattanooga, TN

8 mi. South of Gainsboro, 

TN

Cookeville, TN

Near I-40

I-75 at London, KY

214.5

L West Virginia I-77 at Beckley, WV I-79 at Sutton, WV 60.5

P Pennsylvania I-80, Near Lock Haven,

PA

I-80 near Milton, PA 54.7

Q Virginia and

West Virginia

West of Grundy, VA I-81 at Christiansburg, VA 129.8

T Pennsylvania

and New York

I-90 near Erie, PA I-81 at Binghamton, NY 220.3

Total Miles 1,417.8
Highway and Traffic Analyses

ADHS Economic Evaluation 3-5

“Without ADHS Scenario” – The more difficult challenge was to visualize the highway system 

and traffic levels that would exist today in each corridor region if the ADHS had never been built. 

This “without ADHS” scenario was deemed to be the existing 1995 regional highway system 

excluding the ADHS improvement. In other words, the old roads or highways prior to the ADHS, 

are suitably maintained. These are described on Exhibits 3-3 through 3-13 as “Without ADHS 

Improvements.” Considerable effort was expended to properly define the “old road” that existed 

prior to the ADHS.

This study’s estimates of economic benefits and economic costs believed attributable to the 

ADHS represent the benefit and impact differences between the “With ADHS” and “Without 

ADHS” highway scenarios. 
Highway and Traffic Analyses

ADHS Economic Evaluation 3-6

With ADHS Improvements

q Georgia: GA 400 from Forsyth Countyline north to GA 60 south of Dahlonega 

(includes a section constructed with APL funds as a local access road from GA 53 to 

GA60). 

Without ADHS Improvements

q Georgia: Georgia Route 9 from Forsyth Countyline to Georgia Route 141 (junction 

with Corridor A1 south of Cumming); Georgia Route 9 from Georgia Route 141 

(junction with Corridor A) north to Georgia Route 60.
Highway and Traffic Analyses

ADHS Economic Evaluation 3-7

With ADHS Improvements

q North Carolina: US 19/23 From I-40 at Asheville, North Carolina north to Tennessee.

q Tennessee: US23 and I-181 at Johnson City-Kingsport to Virginia

q Virginia: US 23 to Kentucky.

q Kentucky: US23/119 through Pikeville, via KY 80 to Prestonburg, via US 23/460 to 

Paintsville, and via US 23 to Ohio River Crossing at Portsmouth, Ohio. 

Without ADHS Improvements

q North Carolina: Business US 19/23 from I-40 at Asheville north to Mars Hill; US 23 

from Mars Hill north to the Tennessee State line at Sam’s Gap. 

q Tennessee: US 23 from the North Carolina State line at Sam’s Gap north to

Kingsport at the Virginia State line.

q Virginia: US 23 from the Kingsport at the Tennessee State line north to Pound at the 

Kentucky State line.

q Kentucky: US 23/US 119 from Jenkins at the Virginia State line to the junction with 

US460/Ky Route 80 (Corridor Q) at Pikeville; US 460/US119/US23/Ky Route 80 from 

junction with corridor Q at Pikeville north to junction with US 119 (Corridor G) north of 
Highway and Traffic Analyses

ADHS Economic Evaluation 3-8

Pikeville; US 460/US23/Ky Route 80 from Pikeville to junction with Ky. Route 80 at 

Prestonburg; US 460/US23 from Prestonburg north junction with US 460 at

Paintsville; US 460 at Paintsville north to junction with Corridor B1 at Greenup at Ohio 

State line.
Highway and Traffic Analyses

ADHS Economic Evaluation 3-9

With ADHS Improvements

Study Corridor is divided into two segments: one in Ohio and another in West Virginia 

which are separated by a 25 mile gap between Athens, Ohio and Parkersburg, West 

Virginia. 

q Ohio: From I-275 at Cincinnati, Ohio via Ohio Route 32 to Piketon then via Ohio 

Route 32/124 to jct. with US 50 west of Albany, Ohio and via US 50 to intersection 

with Ohio 56 at eastern limits of Athens, Ohio. (Includes a 6.5 mile section under 

construction at Piketon from Ohio Route 104 east to Ohio Route 220. Existing Ohio 

Route 32 provides alternative routing for continuity.

q West Virginia: From I-77 west of Parkersburg, West Virginia via US 50 to I -79 at 

Clarksburg, West Virginia. 

Without ADHS Improvements

q Ohio: Ohio Route 32 from Ohio Route 132 at Batavia to Ohio Route 74 at

Andersonville (this is identified as Route 74 on older maps and as Route 32 on more 

recent maps); Ohio Route 74 (Route 32 ?) From Andersonville eastward to Ohio 

Route 73 southeast of Locust Grove; Ohio Route 73 from Locust Grove to Ohio 

Route 772 at Rardon; Ohio Route 772 from Rardon to Ohio Route 112 at Jasper; 

Ohio Route 112 north to Ohio Route 124 west of Piketon; Ohio Route 124 east to 

junction with Ohio Route 689 at Wilkesville; Ohio Route 689 north to junction with 

Ohio Route 143 at Mt. Blanco (recent maps show Route 143 as Route 346); Ohio 
Highway and Traffic Analyses

ADHS Economic Evaluation 3-10

Route 143 (Route 346 ?) northeast to junction with US 50 west of Albany; US 50 from 

Albany to Athens.

q West Virginia: US 50 from WV Route 47 at Parkersburg east to US 19 at Clarksburg.
Highway and Traffic Analyses

ADHS Economic Evaluation 3-11

With ADHS Improvements

q West Virginia: From I -79 at Morgantown, West Virginia via I-68 (US 40) to I-70 at 

Hancock, Maryland.

Without ADHS Improvements

q West Virginia: US 119/ WV Route 73 from WV Route 92 at Morgantown east to 

junction with US 119 at Easton; WV Route 73 east to junction with WV Route 26 at 

Bruceton Mills; WV Route 26 north to WV Route 281 at Brandonville; WV Route 281 

northeast to junction with US 40 in Pennsylvania; US 40 (in Pennsylvania) into

Maryland.

q Maryland: US 40 from Pennsylvania State line east to junction with Maryland Route 

522 at Hancock.
Highway and Traffic Analyses

ADHS Economic Evaluation 3-12

With ADHS Improvements

q Tennessee: From I -75 at Caryville, Tennessee via US 25W to Tenn. Route 63 @ 

LaFollette, via Tenn. Route 63 to Tenn. Route 32/US 25E and then via Tenn. Route 

32/US 25E to Cumberland Gap at Kentucky State line. Projects in Tennessee from 

La Follette east to US 25E, a 30 mile section, have been built to 2 lanes with future 

widening planned to 4 lanes. 

q Kentucky: From Cumberland Gap via US 25E to US 119 at Pineville, Kentucky and 

then via US 119 to Corridor B (US 23) at Jenkins, Kentucky. An unbuilt section for 

14.5 miles from Pine Mountain to Whitesburg in Kentucky is planned for widening of 

shoulders and additions of climbing lanes along the existing US 119. 

Before ADHS Improvements

q Tennessee: US 25 W from junction with Tennessee Route 63 in Caryville eastward 

to junction with US 25W at LaFollette; Tennessee Route 63 from LaFollette eastward 

to junction with US 25E at Patterson Crossroads; US 25E north to the Cumberland 

Gap at the Kentucky State line.

q Kentucky: US 25E fromthe Cumberland Gap at Middlesboro eastward to junction with 

US 119 at Pineville; US 119 east from Pineville to US 23 at Jenkins near the Virginia State

line.
Highway and Traffic Analyses

ADHS Economic Evaluation 3-13

With ADHS Improvements

q Kentucky: From Corridor F (US 119) at Whitesburg, Kentucky via Kentucky Route 15 

to Kentucky Route 30 south of Jackson, Kentucky. Length is 60.5 miles. Remainder 

of Corridor I in Kentucky is an “Adequate” section built with other funds from Jackson 

to I-64 at Winchester.

Before ADHS Improvements

q Kentucky: Kentucky Route 15 northwest to junction with Kentucky Route 28 at 

Darfork (north of Hazard); Kentucky Route 28 northwest to junction with Kentucky 

Route 267 at Clemons; Kentucky Route 267 north to junction with Kentucky Route 15 

at Stacy; Kentucky Route 15 northwest to junction with Kentucky Route 30 at

Jackson.
Highway and Traffic Analyses

ADHS Economic Evaluation 3-14

With ADHS Improvements

q Tennessee: From I-124 at Chattanooga, Tennessee north via US 27 to Soddy-Daisy, 

northwest via Tenn. Route 111 to Dunlap, and Tenn. Route 8/111 to Cookville north of I-40 

(this segment includes sections with 2 of ultimate 4 lanes complete and open to traffic); 

From Tenn. Route 56 (north of Jackson County line) via Tenn. Route 56 to Gainsboro and 

Tenn. Route 53 to the Kentucky State Line. There is 9.7 mile gap on the corridor between 

north limit at Cookeville to Tenn. Route 56 north of Putnam-Jackson County Line where 

construction of corridor is planned on new location. This segment includes sections with 2 

of ultimate 4 lanes complete and open to traffic. 

q Kentucky: From Tennessee State line via north Ky. Route 61 to Burkesville, east and north 

via Ky. Route 90 to Somerset, east via Ky. Route 80 to I-75 at London, Kentucky.

Without ADHS Improvements

q Tennessee (Southern Section): US 127/Tennessee Route 8 from junction with US 27 in 

Chattanooga north to junction with Tennessee Route 28 near Center Point; Tennessee 

Route 8/28 north to junction with Tennessee Route 8 north of Dunlap; Tennessee Route 8 

north to junction with Tennessee Route 111 at Cagle; Tennessee Route 111 north to junction 

with Kentucky Route 30 at Spencer; Tennessee Route 111 north to junction with US 70S at 

Doyle (south of Sparta); US 70S north to Tennessee Route 42 at Sparta; Tennessee Route 

42 north to Tennessee Route 136 at Cookeville; Tennessee Route 136 north to junction with 

Tennessee Route 290; Tennessee Route 290 northwesterly to Tennessee Route 56 (unbuilt 

section); Tennessee Route 56 north to McCoinsville, south of Gainsboro (unbuilt section).

q Tennessee (Northern Section): Tennessee Route 56 at McCoinsville north to junction with 

Tennessee Rout 53 at Gainsboro; Tennessee Rout 53 north to the Kentucky State line.
Highway and Traffic Analyses

ADHS Economic Evaluation 3-15

q Kentucky: Kentucky Route 61 north to Kentucky Route 90 at Burkesville; Kentucky Route 90 

at Burkesville east to Kentucky Route 55 near Seminary; Kentucky Route 55 to US 127 

(shown as Kentucky 35 on older maps) at Ida; US 127 (Kentucky Route 35) to Kentucky 

Route 90; Kentucky Route 90 to junction with US 27 near Burnside; US 27 north to junction 

with Kentucky Route 80 at Somerset; Kentucky Route 80 east to junction with US 150 near 

London.
Highway and Traffic Analyses

ADHS Economic Evaluation 3-16

With ADHS Improvements

q West Virginia: From I-77 at Beckley, W. Virginia via US 19 to I-79 at Sutton, W. 

Virginia. Length - 69.9 miles. 

Without ADHS Improvements

q West Virginia: WV Route 16 at Prosperity north to US 21 at Red Star; US 21 north to 

junction with US 60 at Kanawha River near Cotton Hill; US 60 east to WV Route 41/ 

US 19 southeast of Lookout; WV Route 41/US 19 north to US 19 at Summerdale; US 

19 north to WV Route 4 near Sutton.
Highway and Traffic Analyses

ADHS Economic Evaluation 3-17

With ADHS Improvement

q Pennsylvania: From I-80 at Lock Haven, Pennsylvania eastward via US 220 and I180 to I-80 and Milton, Pennsylvania. Length is 60.0 miles.

Without ADHS Improvements

q Pennsylvania: PA Route 880 north to PA Route 64 at Cedar Springs; PA Route 64 

north to US 220 at Mill Hall; US 220 east to PA Route 147 at Pennsdale; PA Route 

147 south to PA Route 405 near Milton.
Highway and Traffic Analyses

ADHS Economic Evaluation 3-18

With ADHS Improvement

q Virginia: From Grundy, Virginia via US 19/460 to Bluefield at W. Virginia State line. 

From Glen Lyn at W. Virginia State line east via US 460 to I-81 at Christiansburg, 

Virginia.

q West Virginia: From Virginia State line at Bluefield via US 460 to Virginia State line at 

Glen Lyn.

Without ADHS Improvements

q Virginia: US 460 from Christiansburg to the West Virginia State line; US 460/19 from 

West Virginia State line to junction with US 19 at Claypool Hill; US 460 from Claypool 

Hill to junction with VA Route 83 at Grundy.

q West Virginia: US 460/WV Route 12 from Glen Lyn at the Virginia State line to 

junction with US460/219 at Oakvale; WV Route 12 to junction with US 19 (US 21 on 

old maps) southwest of Princeton; US 19 to Bluefield at the Virginia State line.
Highway and Traffic Analyses

ADHS Economic Evaluation 3-19

With ADHS Improvement

q Pennsylvania: From I-90 east of Erie Pennsylvania via Pa. Route 17 to New York 

State line (section was recently widened to 4 lanes with other than ADHS funds).

q New York: From Pennsylvania State line via New York Route 17 to I-81 at

Binghamton, New York.

Without ADHS Improvements

q Pennsylvania: PA Route 430 to the New York State line.

q New York: NY Route 430 from Pennsylvania State line east to NY 302 at Sherman; 

NY 302 east to NY Route 94 at Chautauqua Lake; NY Route 94 across Chautauqua 

Lake to NY Route 17; NY Route 17 east to NY Route 16 at Olean; NY Route 16 to NY 

Route 408 at Hinsdale; NY Route 408 to NY 20 at Cuba; NY Route 20 to NY Routes 

16/2 at Angelica; NY Route 2 to NY Route 70 at Hornell; NY Route 70 to NY Routes 

15/415 at Avoca; NY Routes 15/415 to NY Route 17 at Painted Post; NY Route 17 to 

junction with NY Route 60 at Elmira; NY Routes 17/60 to US 11 at Binghamton.
Highway and Traffic Analyses

ADHS Economic Evaluation 3-20

CORRIDOR ANALYSES

Sources of Information

In order to assess the economic impacts resulting from the completed ADHS improvements, it 

is necessary to compare the physical and operational characteristics of the Study Corridors with 

and without the ADHS improvements. Three sources of information were used to develop data 

for each of the Study Corridors: (1) ARC’s 1997 Cost-To-Complete Database and other data 

provided by ARC; (2) a questionnaire sent to State DOTs requesting before and after data for the 

Study Corridors; and (3) a travel model developed by Wilbur Smith Associates to estimate traffic 

and travel data not available from the other sources.

The ARC’s 1997 Cost-To-Complete Database includes detailed information regarding the

current (1995) status of the entire ADHS and the improvements necessary to complete the 

system. The ADHS is divided into more than 1,400 sections within the database. This database 

does provide useful information on the current physical characteristics of those Study Corridor 

sections that were completed before 1995. However, it contains very little historical information 

about the Study Corridors before any improvements were made.

To supplement the data available from ARC and, in particular, to obtain more data on the Study 

Corridors before the ADHS improvements were made, a survey questionnaire (Exhibit 3-14)

was developed and sent to the State DOTs in the 10 states through which the Study Corridors 

pass. The State DOTs were very cooperative and responsive. All of the states had good and 

useful data on the existing (improved) Study Corridors. Most of the State DOTs, however, had 

little detailed historical data concerning the unimproved Study Corridors (the highways before the 

ADHS improvements were made). In those cases where detailed historical data was not 

available, the State DOTs were instructed to use professional judgment in estimating the 

missing data. Based on the experience of this study, it is recommended that the ARC collect 

information regarding the existing physical and operational characteristics of those ADHS

corridor sections that have not yet been improved (for use in future studies).

Traffic Model

The two data sources described above provided traffic information for two points in time: 1965 

and 1995. A travel model was developed by Wilbur Smith Associates to estimate the traffic and 

travel data required to analyze the economic impacts of the ADHS improvements to the Study 

Corridors, including:

• Opening year and 30th year auto and truck traffic for each Study Corridor section – the ADHS 

improvements within each Study Corridor were not all completed at the same time. To 

realistically compute economic benefits, auto and truck traffic estimates are needed for the 

year each Study Corridor section was first opened-to-traffic, and for the 30th year thereafter. 

The ADHS travel model estimates the opening year traffic volumes based on historical traffic 

counts. Traffic estimates for the 30th year are based on historical traffic growth, forecast 

future population growth, and forecast changes in vehicle-miles of travel per person.
Highway and Traffic Analyses

ADHS Economic Evaluation 3-21

Exhibit 3-14

Appalachian Development Highway System (ADHS)

Economic Benefit Study Questionnaire

State: Corridor: Section:

From: To:

Part 1: Description of the improved ADHS Corridor section in 1995

(1)Area Type: o Urban o Rural

(2)Road Type: o Freeway o Prin Arterial o Min Arterial o Collector o Local

(3)Access Control: o Full Control o Limited Access o Controlled Access

(4)Length (x.x mi): (5)Speed Limit (mph): 

(6)Thru Lanes (#): (7)Climbing Lanes (mi): 

(8)Lane Width (ft): (9)Median Width (ft): (10)Shoulder Width (ft): 

(11)Curvature (mi): @0-2° @3-6° @7-9° @10-14° @>14°

(12)Grades (mi): @0-5% @6-7% @8-9% @10-11% @>11%

(13)1995 AADT: (14)1995 % Trucks: 

(15)In what year was the last major ADHS roadway improvement to this section completed? 

(16)Did the ADHS improvements to this section primarily involve: o Improving an existing road, or

o Building a new road on new location?

Part II: Description of the road that 1995 traffic on the Corridor section described above would 

have used in 1995 if no ADHS improvements had been made:

(17)Area Type: o Urban o Rural

(18)Road Type: o Freeway o Prin Arterial o Min Arterial o Collector o Local

(19)Access Control: o Full Control o Limited Access o Controlled Access

(20)Surface Type: o Unpaved o Paved

(21)Length (x.x mi): (22)Speed Limit (mph): 

(23)Thru Lanes (#): (24)Climbing Lanes (mi): 

(25)Lane Width (ft): (26)Median Width (ft): (27)Shoulder Width (ft): 

(28)Curvature (mi): @0-2° @3-6° @7-9° @10-14° @>14°

(29)Grades (mi): @0-5% @6-7% @8-9% @10-11% @>11%

(30)1965 AADT: (31)1965 % Trucks: <-------- yes, we do want 1965 data here!

If the ADHS improvements for this section involved building a new road in a new location, please provide the 

following information for the old road through this corridor (ie, the road that 1995 section traffic would have 

used in 1995 if the new road had not been built):
Highway and Traffic Analyses

ADHS Economic Evaluation 3-22

(32)1995 Rte Num: (33)1995 Rte Name: 

(34)1995 AADT: (35)1995 % Trucks: Thank you very much for your help.

• Opening year and 30th year travel time/speed for each Study Corridor segment, with and 

without the ADHS improvements -- travel time/speed was estimated for each Study Corridor 

segment using the Highway Performance Monitoring System (HPMS) methodology and data 

developed by the FHWA. This methodology recognizes that travel time, due to congestioninduced speed change cycles, varies according to the level of congestion (expressed in 

terms of volume/capacity ratios) and varies by type of vehicle (that is to say, it takes longer 

for a truck to resume original speed).

Corridor Characteristics

The remainder of this chapter summarizes the physical and operating characteristics of the 

Study Corridors, with and without the ADHS improvements. For data collection and analysis, the 

Study Corridors were segmented into more than 500 sections. For the purposes of this report 

the data are summarized by Corridor and State.

Study Corridor Length and Opening Year -- Exhibit 3-15 summarizes Study Corridor 

lengths with and without the ADHS improvements. As discussed earlier, these lengths exclude 

any Study Corridor segments that were not improved with ADHS funds, or were not open to 

traffic by 1995.

Altogether, the Study Corridors include approximately 1,417 miles of roadway that were

constructed or improved using ADHS funds. The comparable roadway mileage in all Study 

Corridors without the ADHS improvements was about 1,478 miles. The ADHS improvements 

increased roadway mileage in some corridors and decreased mileage in others. As will be seen 

later, the major benefits of the ADHS improvements do not come from changes in overall 

corridor mileage, but from changes in number of lanes and design standards.

Exhibit 3-15 also shows the earliest year, the latest year and the average year that ADHSimproved road sections were opened to traffic within each Study Corridor. The open-to-traffic 

year is important in this study because it represents the first year that benefits can be generated 

for an improved roadway section. The earliest year improved sections were opened to traffic 

was 1967, while the latest were opened in 1995. Corridors F, I and P have been open to traffic 

the longest. Corridors B, E, L and T include sections that were opened very recently.

Number of Lanes and Lane Miles -- Exhibit 3-16 shows the minimum, maximum and 

average number of roadway lanes for each Study Corridor with and without the ADHS

improvements. Overall, the ADHS improvements increased the average number of lanes in the 

Study Corridors from 2.1 to 3.7. Most Study Corridor roadways were 2-lanes before the ADHS 

improvements, and 4-lanes after the ADHS improvements. 

Also shown in Exhibit 3-16 is the mileage of climbing lanes with and without the ADHS

improvements. Overall, the ADHS improvements increased the climbing lane mileage in the 

Study Corridors from 9 to 121 miles. In some cases (for example, Corridors B and P), climbing 

lanes that existed before the ADHS improvements were eliminated when the roadway section 

was widened.
Highway and Traffic Analyses

ADHS Economic Evaluation 3-23

Exhibit 3-15. Corridor Length With and Without ADHS Improvements and

the Year Open to Traffic

Studied Length (miles) Year Open to Traffic

Corridor State With Without Earliest Latest Average

A/A1 GA 30.4 28.5 1984 1984 1984

B KY 116.2 129.3 1968 1992 1976

NC 18.3 18.3 1968 1974 1971

TN 57.4 55.9 1971 1995 1984

VA 57.5 69.4 1968 1987 1976

All of B 249.4 272.8 1968 1995 1977

D OH 119.4 128.4 1969 1984 1976

WV 70.4 75.0 1971 1978 1972

All of D 189.8 203.4 1969 1984 1975

E MD 77.0 77.3 1968 1993 1983

WV 32.2 30.1 1974 1976 1975

All of E 109.2 107.4 1968 1993 1981

F KY 63.5 68.5 1973 1978 1975

TN 35.8 36.6 1968 1977 1976

All of F 99.3 105.1 1968 1978 1975

I KY 59.9 63.4 1968 1972 1969

J KY 93.7 99.4 1970 1984 1977

TN 120.8 113.5 1973 1991 1983

All of J 214.5 212.9 1970 1991 1981

L WV 60.5 67.3 1971 1995 1980

P PA 54.7 54.4 1969 1979 1973

Q VA 103.0 108.8 1967 1986 1976

WV 26.8 27.6 1967 1978 1975

All of Q 129.8 136.4 1967 1986 1976

T NY 213.5 218.4 1970 1994 1978
Highway and Traffic Analyses

ADHS Economic Evaluation 3-24

PA 6.8 8.4 1986 1986 1986

All of T 220.3 226.8 1970 1994 1978

Total (All Corridors) 1,417.8 1,478.4 1967 1995 1977 
Highway and Traffic Analyses

ADHS Economic Evaluation 3-25

Exhibit 3-16. Number of Lanes and Lane Miles With and Without ADHS Improvements

Number of Lanes Number of Lanes Climbing Lanes

With Without (Miles) Lane Miles

Corridor State Min. Max. Avg. Min. Max. Avg. With Without With Without

A/A1 GA 4 4 4.0 2 4 2.3 0.0 0.0 121.6 66.3

B KY 2 4 4.0 2 2 2.0 0.0 1.1 463.2 258.5

NC 4 8 4.2 2 4 3.7 0.0 0.0 76.0 66.9

TN 4 4 4.0 2 4 2.5 1.9 0.4 229.6 138.7

VA 4 4 4.0 2 4 2.1 0.0 2.4 230.0 146.8

All of B 2 8 4.0 2 4 2.2 1.9 3.8 998.8 610.8

D OH 4 4 4.0 2 2 2.0 0.0 0.0 477.6 256.9

WV 4 4 4.0 2 2 2.0 0.0 0.0 281.6 149.9

All of D 4 4 4.0 2 2 2.0 0.0 0.0 759.2 406.8

E MD 4 4 4.0 2 2 2.0 51.7 0.0 308.0 154.5

WV 4 4 4.0 2 2 2.0 10.0 0.0 128.8 60.3

All of E 4 4 4.0 2 2 2.0 61.7 0.0 436.8 214.8

F KY 2 4 2.4 2 2 2.0 6.0 0.0 155.0 136.9

TN 4 4 4.0 2 2 2.0 0.0 0.0 143.2 73.3

All of F 2 4 3.0 2 2 2.0 6.0 0.0 298.2 210.2

I KY 2 4 2.3 2 2 2.0 17.0 0.0 140.4 126.7

J KY 2 4 2.3 2 2 2.0 15.9 0.0 218.6 198.8

TN 2 4 3.5 2 2 2.0 14.6 0.0 421.8 227.0

All of J 2 4 3.0 2 2 2.0 30.5 0.0 640.4 425.8

L WV 4 4 4.0 2 4 2.1 4.1 1.1 242.0 142.0

P PA 4 4 4.0 2 4 2.1 0.0 4.1 218.8 115.1

Q VA 4 4 4.0 2 2 2.0 0.0 0.0 412.0 217.6

WV 4 4 4.0 2 4 2.1 0.0 0.0 107.2 58.9

All of Q 4 4 4.0 2 4 2.0 0.0 0.0 519.2 276.6

T NY 4 6 4.0 2 4 2.2 0.0 0.0 861.8 488.1

PA 4 4 4.0 2 2 2.0 0.0 0.0 27.2 16.9

All of T 4 6 4.0 2 4 2.2 0.0 0.0 889.0 505.0

Total (All Corridors) 2 8 3.7 2 4 2.1 121.2 9.0 5264 3100.2
Highway and Traffic Analyses

ADHS Economic Evaluation 3-26

The new lanes added by the ADHS improvements significantly increased the roadway lane-miles 

in the Study Corridors. As shown in Exhibit 3-16, total lane miles increased from 3,100 to 5,264, 

a 70% increase. The most significant increases occurred in Corridors A/A1, D, E, P and Q.

The ADHS improvements to the Study Corridor roadways are also reflected in the increased 

width of an average lane (Exhibit 3-17). Except for a portion of the Corridor T in New York, all 

Study Corridor roadways have been upgraded to a standard lane-width of 12 feet. 

Roadway Classification -- Approximately 13% of the improved Study Corridor mileage is 

classified as urban, while 87% is rural. The overall mileage of urban and rural highways does 

not change much with and without the ADHS improvements. However, as shown in Exhibit 3-

18, the ADHS improvements increased lane miles in urbanized areas from 478 to 752, or by 

57%. Rural lane miles increased from 2,622 to 4,512, or by 72%.

Exhibit 3-19 describes the Study Corridors, with and without the ADHS improvements, in terms 

of roadway type. Most significant is the increase in freeway lane miles, which increases from 0 

to 1,202 miles with the ADHS improvements. Arterial lane miles increased from 2,182 to 4,062, 

or by 86%. 

Speed Limits -- A summary of minimum, maximum and average posted speed limits with and 

without the ADHS improvements is presented in Exhibit 3-20. Overall, the ADHS improvements 

have increased the average posted speed limit in the Study Corridors by 10 miles per hour, or 

more than 20%. This increase is the obvious result of the higher design standards used for the 

ADHS improvements.

Roadway Curvature and Grades -- The higher design standards used for the ADHS

improvements also resulted in less severe curves and grades within the Study Corridors. 

Exhibit 3-21 shows the percentage of Study Corridor roadway mileage by degree of curvature 

and the weighted average degree of curvature, with and without the ADHS improvements. 

Overall, the average degree of curvature for all corridors was reduced from 2.9 to 2.1. 

Exhibit 3-22 shows the percentage of Study Corridor roadway mileage by percent grade and the 

average percent grade, with and without the ADHS improvements. Overall, the average grade 

for all corridors was reduced from 3.2% to 3.0%. In comparing the curvature and grade data, it 

appears that the grade problems were not as severe as the curvature problems. Consequently,

the ADHS improvements should be expected to have more impact on the curvature problems.
ADHS Economic Evaluation 3-27

Exhibit 3-21. Roadway Curvature With and Without ADHS Improvements

Percent Roadway mileage by Curvature (degrees) AverageCurvature

0-2

o

3-6

o

7-9

o

10-14o Over 14o(Degrees)

Corridor State With Without With Without With Without With Without With Without With Without

A/A1 GA 59.8 30.0 11.0 60.8 22.5 5.8 5.7 3.5 1.0 0.0 3.7 3.9

B KY 91.4 87.3 6.2 6.3 1.5 2.9 1.0 1.8 0.0 1.6 1.4 1.9

NC 71.1 71.1 28.9 28.9 0.0 0.0 0.0 0.0 0.0 0.0 2.0 2.0

TN 50.5 55.2 0.5 0.2 9.5 4.0 6.9 1.4 32.4 39.2 7.3 7.3

VA 82.3 87.7 15.5 3.9 2.3 5.8 0.0 0.0 0.0 2.6 1.7 1.9

All of B 78.4 79.7 8.7 6.0 3.4 3.7 2.0 1.2 7.5 9.5 2.9 3.0

D OH 96.1 84.3 3.9 8.7 0.0 1.4 0.0 0.7 0.0 4.9 1.1 2.2

WV 79.1 58.1 20.7 28.3 0.3 6.7 0.0 4.5 0.0 2.4 1.7 3.3

All of D 89.8 74.6 10.1 15.9 0.1 3.4 0.0 2.1 0.0 4.0 1.4 2.6

E MD 52.7 44.9 31.9 31.3 15.4 8.5 0.0 6.1 0.0 9.3 3.2 4.8

WV 87.2 69.9 12.8 22.0 0.0 3.0 0.0 2.7 0.0 2.3 1.4 2.6

All of E 62.9 51.9 26.3 28.7 10.9 7.0 0.0 5.2 0.0 7.3 2.7 4.2

F KY 93.3 89.4 5.3 7.1 1.3 2.0 0.1 0.9 0.0 0.5 1.3 1.6

TN 64.4 62.5 19.6 8.4 6.5 8.1 4.3 5.4 5.3 15.6 3.4 4.8

All of F 82.9 80.1 10.5 7.5 3.1 4.1 1.7 2.5 1.9 5.8 2.1 2.7

I KY 75.9 67.5 14.7 14.2 7.5 10.6 1.3 2.8 0.6 4.8 2.3 3.3

J KY 97.1 79.7 2.1 5.6 0.8 4.6 0.0 3.1 0.0 7.0 1.1 2.9

TN 85.0 74.9 13.5 22.5 0.5 1.0 1.0 1.7 0.0 0.0 1.6 2.0

All of J 90.3 77.1 8.5 14.6 0.6 2.6 0.6 2.4 0.0 3.3 1.4 2.4

L WV 91.3 70.8 8.7 11.8 0.0 9.8 0.0 4.2 0.0 3.4 1.3 3.1

P PA 96.3 89.4 3.7 5.3 0.0 3.7 0.0 0.5 0.0 1.0 1.1 1.7

Q VA 86.3 84.2 11.7 9.4 0.9 3.1 1.1 1.7 0.0 1.7 1.6 2.0
Highway and Traffic Analyses

ADHS Economic Evaluation 3-28

WV 73.8 84.8 25.5 3.9 0.7 4.6 0.0 4.2 0.0 2.4 1.9 2.3

All of Q 83.7 84.3 14.6 8.3 0.9 3.4 0.8 2.2 0.0 1.8 1.7 2.0

T NY 48.4 36.0 44.7 46.3 7.0 17.8 0.0 0.0 0.0 0.0 3.1 3.9

PA 100.0 94.5 0.0 3.9 0.0 0.4 0.0 0.8 0.0 0.4 1.0 1.3

All of T 50.0 38.1 43.3 44.7 6.8 17.1 0.0 0.0 0.0 0.0 3.0 3.8

All Corridors 77.6 69.2 16.4 18.2 3.7 6.4 0.8 2.0 1.5 4.3 2.1 2.9
Highway and Traffic Analyses

ADHS Economic Evaluation 3-29

Exhibit 3-22. Roadway Grades With and Without ADHS Improvements

Percent Roadway Mileage by Grade (percent) Avg. Grade

0-5% 6-7% 8-9% 10-11% Over 11% (percent)

Corridor State With Without With Without With Without With Without With Without With Without

A/A1 GA 90.3 77.5 6.4 22.5 3.3 0.0 0.1 0.0 0.0 0.0 3.0 3.4

B KY 95.4 95.2 4.6 3.0 0.0 1.8 0.0 0.0 0.0 0.0 2.7 2.7

NC 96.3 93.2 3.7 6.8 0.0 0.0 0.0 0.0 0.0 0.0 2.6 2.8

TN 100.0 100.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.5 2.5

VA 86.6 84.3 10.4 6.2 3.0 9.0 0.0 0.4 0.0 0.0 3.1 3.3

All of B 94.5 93.3 4.8 3.5 0.7 3.1 0.0 0.1 0.0 0.0 2.7 2.8

D OH 97.5 85.3 2.5 7.8 0.0 6.0 0.0 0.1 0.0 0.8 2.6 3.3

WV 100.0 93.2 0.0 6.7 0.0 0.2 0.0 0.0 0.0 0.0 2.5 2.8

All of D 98.4 88.2 1.6 7.4 0.0 3.9 0.0 0.0 0.0 0.5 2.6 3.1

E MD 65.7 64.3 21.9 23.6 6.8 7.2 5.6 4.9 0.0 0.0 4.2 4.3

WV 92.8 70.5 7.2 23.7 0.0 5.7 0.0 0.0 0.0 0.0 2.8 3.8

All of E 73.6 66.1 17.6 23.6 4.8 6.7 4.0 3.6 0.0 0.0 3.8 4.1

F KY 88.4 86.5 11.6 11.3 0.0 2.2 0.0 0.0 0.0 0.0 3.0 3.1

TN 100.0 100.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.5 2.5

All of F 92.6 91.2 7.4 7.4 0.0 1.4 0.0 0.0 0.0 0.0 2.8 2.9

I KY 74.9 66.8 16.7 16.1 8.3 13.9 0.0 3.2 0.0 0.0 3.7 4.2

J KY 81.5 82.3 18.5 6.0 0.0 9.9 0.0 1.8 0.0 0.0 3.2 3.5

TN 89.7 89.4 10.3 10.6 0.0 0.0 0.0 0.0 0.0 0.0 2.9 2.9

All of J 86.1 86.0 13.9 8.5 0.0 4.6 0.0 0.8 0.0 0.0 3.1 3.2

L WV 97.2 84.0 2.8 15.7 0.0 0.1 0.0 0.1 0.0 0.0 2.6 3.1

P PA 99.8 96.7 0.2 2.8 0.0 0.5 0.0 0.0 0.0 0.0 2.5 2.6
Highway and Traffic Analyses

ADHS Economic Evaluation 3-30

Q VA 88.8 86.6 10.4 12.3 0.4 0.8 0.0 0.3 0.4 0.0 3.0 3.1

WV 98.5 98.2 1.5 1.8 0.0 0.0 0.0 0.0 0.0 0.0 2.6 2.6

All of Q 90.8 88.9 8.6 10.2 0.3 0.7 0.0 0.2 0.3 0.0 2.9 3.0

T NY 75.4 70.1 24.6 27.6 0.0 2.2 0.0 0.0 0.0 0.0 3.5 3.7

PA 100.0 99.2 0.0 0.8 0.0 0.0 0.0 0.0 0.0 0.0 2.5 2.5

All of T 76.1 71.2 23.9 26.6 0.0 2.2 0.0 0.0 0.0 0.0 3.5 3.7

All Corridors 88.2 83.9 10.5 12.1 0.9 3.4 0.3 0.6 0.0 0.1 3.0 3.2
Highway and Traffic Analyses

ADHS Economic Evaluation 3-31
ADHS Economic Evaluation 3-32

Traffic Analyses

Exhibit 3-23 summarizes the minimum, maximum and average annual daily traffic (AADT) in 

the Study Corridors for: (1) 1965, before any ADHS improvements were made, (2) the first year 

each improved Study Corridor segment was open to traffic, and (3) for 1995, after all ADHS 

improvements were made. In almost every Study Corridor there are very significant differences 

between the minimum and maximum AADTs. The minimum AADTs typically occur on rural 

sections of the Study Corridors. The maximum AADTs typically occur on urban sections of the 

Study Corridors. The average AADT typically falls closer to the minimum because there are 

many more rural miles in each Study Corridor than there are urban miles.

As discussed earlier, the improved Study Corridor sections were opened to traffic at various 

times between 1967 and 1995. Consequently, the “first year open” AADT presented in Exhibit 3-

23 does not represent traffic for a single year. Instead it represents the average of the first year 

open AADTs for all Study Corridor sections, whenever they were opened to traffic. Between 

1965 and 1995, average AADT for all Study Corridors (except Corridor T for which 1965 data 

were not available) increased from 3,572 to 11,925, or by 233%. The 1995 average AADT for all 

corridors including Corridor T is about 11,931. Between opening year and 1995, average AADT 

for all Study Corridors increased from almost 7,000 to almost 12,000, or by 71%. 

The AADTs discussed above are one, but not the only, measure of travel on the Study Corridors. 

Vehicle miles of travel (VMT) and vehicle hours of travel (VHT) are also useful measures 

because they take into account not only the amount of traffic, but also the distance and time that 

vehicles travel. VMT on a roadway section is calculated by summing the distance each vehicle 

on the section travels (for example, 1 vehicle traveling for 1 mile generates 1 vehicle mile of 

travel). VHT on a roadway section is calculated by summing the time each vehicle takes to 

travel on the section (for example, 1 vehicle traveling for 1 hour generates one vehicle hour of 

travel).

Exhibit 3-24 summarizes the estimated 1995 VMT and VHT for cars and trucks in the Study 

Corridors, with and without the ADHS improvements. The 1995 VMT for the Study Corridors 

with the ADHS improvements is 14,564,000 for cars and 2,353,000 for trucks. Without the 

ADHS improvements, the VMT would be about 14,928,000 for cars and 2,425,000 for trucks, or 

about 2.5-3.0% higher. The reduction in vehicle miles of travel is primarily due to the slight 

reduction in Study Corridor mileage with the ADHS improvements.

The 1995 VHT for the Study Corridors with the ADHS improvements is 292,000 for cars and 

67,000 for trucks. Without the ADHS improvements, the VHT would be about 463,000 (about 

60% higher) for cars and 94,000 (about 40% higher) for trucks. The very significant reduction in 

vehicle hours of travel is primarily due to the higher average travel speeds achieved through the 

ADHS improvements. In terms of VHT, trucks benefited somewhat less from the ADHS

improvements than did cars because they are more affected by the remaining curves and 

grades on the improved Study Corridors than are cars.
Highway and Traffic Analyses

ADHS Economic Evaluation 3-33

Exhibit 3-23. Average Daily Traffic (AADT) Before and After ADHS Improvements

Average 1st AADT for 1965

AADT for the 1st Year

Open AADT for 1995

Yr. Open Min Max Avg Min Max Avg Min Max Avg

1984 1,300 2,300 1,836 4,085 18,679 10,948 16,250 45,000 29,351 

1976 2,300 15,600 4,332 2,586 19,225 7,200 5,500 30,600 14,522 

1971 3,900 20,200 10,930 5,439 27,841 10,504 10,000 52,400 18,650 

1984 900 9,300 5,412 4,000 22,023 10,138 4,000 38,200 19,179 

1976 2,000 6,300 3,461 3,656 12,627 5,615 5,910 22,100 10,335 

1977 900 20,200 4,774 2,586 27,841 7,620 4,000 52,400 14,931 

1976 2,100 4,600 3,400 2,265 12,427 3,985 1,900 30,300 7,274 

1972 1,400 5,800 3,406 1,928 16,582 4,821 9,800 47,000 13,935 

1975 1,400 5,800 3,402 1,928 16,582 4,283 1,900 47,000 9,745 

1983 2,700 19,300 5,886 4,933 18,680 10,180 8,850 32,350 14,238 

1975 1,700 1,700 1,700 3,785 8,587 5,481 9,900 27,500 16,029 

1981 1,700 19,300 4,711 3,785 18,680 8,861 8,850 32,350 14,766 

1975 2,200 5,600 3,011 1,733 10,772 4,756 2,300 21,000 8,037 

1976 1,500 4,500 1,854 1,547 12,169 3,877 3,100 25,600 9,156 

1975 1,500 5,600 2,607 1,547 12,169 4,450 2,300 25,600 8,440 

1969 1,600 2,800 2,026 2,171 4,515 2,833 6,000 13,400 8,986 

1977 800 4,600 1,592 619 6,423 2,921 1,600 14,100 5,524 

1983 400 4,600 1,416 420 18,961 5,001 1,400 25,600 7,754 

1981 400 4,600 1,498 420 18,961 4,030 1,400 25,600 6,780 

1980 2,100 5,200 2,941 2,411 14,800 6,625 7,800 23,200 13,233 

1973 2,600 10,600 6,724 5,061 22,333 10,289 4,553 42,600 15,659 

1976 3,000 8,500 4,503 3,444 14,580 7,698 8,500 25,200 12,647 

1975 4,100 6,800 5,177 4,830 10,680 7,351 9,200 24,500 15,351 

1976 3,000 8,500 4,639 3,444 14,580 7,628 8,500 25,200 13,206 

1978 N/A N/A N/A 5,150 39,423 11,377 5,150 39,700 12,185 

1986 N/A N/A N/A 8,632 8,666 8,645 5,124 5,144 5,134 

1978 5,150 39,423 11,275 5,124 39,700 11,967 

1977 400 20,200 3,572 420 39,423 6,984 1,400 52,400 11,931 
Highway and Traffic Analyses

ADHS Economic Evaluation 3-34

Exhibit 3-24. 1995 Daily Vehicle Miles and Hours of Travel With and Without ADHS

Improvements (1,000’s)

Car VMT Truck VMT Car VHT Truck VHT

Corridor State With Without With Without With Without With Without

A/A1 GA 831.18 757.22 61.09 54.65 16.51 24.78 1.65 2.12

B KY 1442.10 1604.61 245.32 270.77 29.87 48.41 7.02 9.18

NC 317.38 316.48 23.91 23.86 6.18 9.92 0.59 1.06

TN 978.45 889.84 122.37 111.54 23.61 33.96 3.55 5.50

VA 527.02 648.91 67.19 85.82 10.15 19.07 2.02 3.19

Total 3264.95 3459.84 458.79 491.99 69.81 111.36 13.18 18.95

D OH 781.73 816.65 86.87 90.75 14.01 20.68 2.32 2.90

WV 826.13 869.79 154.84 164.81 17.59 30.23 4.50 6.34

Total 1607.86 1686.44 241.71 255.56 31.60 50.91 6.82 9.24

E MD 961.46 964.60 134.82 135.26 16.08 27.08 3.50 5.20

WV 448.66 395.51 67.48 59.28 7.11 12.85 1.45 2.44

Total 1410.12 1360.11 202.30 194.54 23.19 39.93 4.95 7.64

F KY 450.85 486.82 59.52 65.02 8.77 11.38 1.71 2.05

TN 288.49 293.48 39.29 40.03 7.19 10.00 1.25 1.51

Total 739.34 780.30 98.81 105.05 15.97 21.38 2.96 3.56

I KY 463.87 495.04 74.38 79.24 9.64 13.77 2.29 2.93

J KY 437.26 462.01 80.38 85.09 8.52 12.47 2.35 2.83

TN 835.36 769.70 101.27 94.11 16.11 25.04 2.64 4.06

Total 1272.62 1231.71 181.65 179.20 24.63 37.51 4.99 6.89

L WV 695.59 766.42 105.05 114.90 12.63 22.44 2.84 4.05

P PA 760.57 730.93 95.96 92.67 14.93 22.59 2.33 3.45

Q VA 1174.10 1245.60 128.61 135.79 24.31 40.50 3.94 5.57

WV 367.59 374.16 43.81 45.88 7.47 11.93 1.28 1.72

Total 1541.69 1619.76 172.42 181.67 31.78 52.43 5.22 7.29

T NY 1948.27 2006.28 653.20 665.94 41.12 64.65 19.87 27.80

PA 27.57 34.24 7.33 9.10 0.44 0.80 0.17 0.26

Total 1975.84 2040.52 660.53 675.04 41.57 65.45 20.04 28.06

All 

Corridors

14,563.6

3 14,928.29 2,352.69 2,424.51 292.26 462.56 67.27 94.19
Highway and Traffic Analyses

ADHS Economic Evaluation 3-35

CORRIDOR AND TRAFFIC CONCLUSIONS

Without question, the ADHS improvements have had a significant and positive impact on the 

physical and operating characteristics of the Study Corridors:

• The average number of lanes has increased from 2.1 to 3.7, or by 76%.

• The total number of lane miles has increased from 3,100 to 5,264, or by 70%.

• The total lane mile of freeways has increased from 0 to 1,202.

• The average speed limit has increased from 47 to 57 miles per hour, or by 21%.

• The average degree of roadway curvature has been reduced from 2.9 to 2.1, or by 38%.

• Vehicle hours of travel for cars and trucks were reduced by 198,000 hours in 1995.

These types of roadway changes make travel more efficient. The economic efficiencies 

(benefits) that result from these improvements are discussed in the next Chapter.
ADHS Economic Evaluation 4-1

Chapter 4

EFFICIENCY GAINS DUE TO THE ADHS

Economic efficiency is a legitimate local, regional, state and national goal. If an investment leads 

to a significant operational cost savings, then there is an economic efficiency rationale for 

making that investment. If a highway improvement is estimated to create significant efficiencies 

(road user cost savings), such savings should be considered in deciding whether or not the 

investment makes economic sense. Therefore, travel efficiency is a relevant criterion for FHWA, 

the Appalachian Regional Commission, the individual state departments of transportation, and 

local agencies in making highway investment decisions.

This study analyzed the costs of traveling on the ADHS, compared those costs with the costs of

travel in the relevant corridors if the ADHS had not been built, and estimated the magnitude of the 

economic savings caused by the ADHS investments. These savings are viewed as “efficiency 

benefits,” and these efficiency benefits are net gains to the economy.

The travel efficiency benefits comprise the dollar value of travel time savings, reduced vehicle 

operating costs, and accident savings that accrue to those who drive on the improved corridors. 

The costs consist of the public sector expenditures associated with building and maintaining the 

ADHS highway improvements. The travel efficiency benefits are compared to the travel

efficiency costs using standard benefit-cost techniques described in Chapter 2. The results of 

the benefit-cost analysis, which include benefit-cost ratio, net present value, and internal rate of 

return indicators, are used to evaluate the various ADHS corridors. 

ADHS CORRIDORS INFLUENCE EFFICIENCY

Americans spend great sums of money, time and lives in the act of traveling (or shipping) from 

one location to another. Investments that will allow them to travel more quickly, more safely or 

less expensively tend to create travel efficiencies.

The ADHS comprises highways that yield just such results – the ADHS highways are observed 

to yield faster, safer, and less expensive trips. Exhibit 4-1 summarizes some of the key 

characteristics of each of the completed portions of the ADHS. The Exhibit shows that:

• Seven of the ADHS routes are shorter than the roadways they replaced;

• The ADHS investments included the widening of many 2-lane highways to 4-lane (4-

lane highways yield considerable travel efficiencies);

• The ADHS investments raised the average speed limit in these corridors from 47 

mph to 57 mph (indicating a much quicker trip on the ADHS).

These characteristics indicate that the ADHS has created better access, and considerably 

superior efficiency.
Efficiency Gains

ADHS Economic Evaluation 4-2

Exhibit 4-1. Corridor Characteristics

Length (Miles) (1) 1995 (2) Average No. Lanes (3) Average Speed Limit (4)

Corridor States Before After AADT Before After Before After

A/A1 GA 28.5 30.4 29,351 2.3 4.0 38 58

B KY, NC, TN, VA 272.9 249.4 14,931 2.2 4.0 45 56

D OH, WV 203.6 189.8 9,745 2.0 4.0 47 55

E MD, WV 107.3 109.2 14,766 2.0 4.0 48 64

F KY, TN 104.9 99.3 8,440 2.0 3.0 49 52

I KY 63.3 59.9 8,986 2.0 3.0 43 54

J KY, TN 212.9 214.5 6,780 2.0 3.0 46 57

L WV 67.3 60.5 12,233 2.1 4.0 49 54

P PA 54.4 54.7 15,659 2.1 4.0 49 61

Q VA, WV 136.3 129.8 13,206 2.0 4.0 44 53

T NY, PA 226.9 220.3 11,967 2.2 4.0 52 60

All Corridors 1,478.3 1,417.8 11,931 2.1 3.7 47 57

(1) The length of the corridor ADHS segments that have been completed and therefore were included in this study. "Before" 

length refers to length of the road before the ADHS highway was built; "After" refers to the length of the ADHS segments 

already built.

(2) AADT = "Average Annual Daily Traffic," which is the daily average traffic volume. It is calculated by dividing daily vehicle 

miles of travel on the corridor by the corridor length.

(3) Average number of lanes of highway in existence. 2.0 means a two-lane highway, 2.3 means most of the highway length 

is two lanes, some is three or four lanes. "Before" of 2.0 and "After" of 4.0 means a previously two-lane highway was widened 

to four lanes.

(4) Average speed limit is average end-to-end speed limit, weighted by traffic volume.
Efficiency Gains

ADHS Economic Evaluation 4-3

Vehicle Miles of Travel Saved

According to this study’s calculations, and as shown on Exhibit 4-2, the completed portions of 

the 12 ADHS corridors combined to save 133,101,000 car miles of travel and 26,214,000 truck

vehicle miles of travel annually. This represents a very significant increase in travel efficiency. 

Some corridors yield a net increase in vehicle miles of travel, due to the longer length of the 

ADHS (Corridors A/A1, E, J and P), and due to the traffic that is induced by the ADHS.

Exhibit 4-2. Annual Vehicle Miles of Travel (1)

(Thousand Vehicle Miles), 1995

Corridor Length (Miles) Car VMT Truck VMT

Corridor Before After Before After Savings Before After Savings

A/A1 28.5 30.4 276,385 303,381 -26,995 19,947 22,298 -2,351

B 272.9 249.4 1,262,842 1,191,707 71,135 179,576 167,458 12,118

D 203.6 189.8 615,551 586,869 28,682 93,279 88,224 5,055

E 107.3 109.2 496,440 514,694 -18,254 71,007 73,840 -2,832

F 104.9 99.3 284,810 269,859 14,950 38,343 36,066 2,278

I 63.3 59.9 180,690 169,313 11,377 28,923 27,149 1,774

J 212.9 214.5 449,574 464,506 -14,932 65,408 66,302 -894

L 67.3 60.5 279,743 253,890 25,853 41,939 38,343 3,595

P 54.4 54.7 266,789 277,608 -10,819 33,825 35,025 -1,201

Q 136.3 129.8 591,212 562,717 28,496 66,310 62,933 3,376

T 226.9 220.3 744,790 721,182 23,608 246,390 241,093 5,296

All 

Corridors 1,478.3 1,417.8 5,448,826 5,315,725 133,101 884,946 858,732 26,214

(1) “After” VMT includes traffic induced by the new highway, therefore, there is more traffic on the “After” ADHS highways than 

“Before” the ADHS highway. On Corridors B, D, F, I, L, Q and T there is less “After” VMT, meaning the ADHS is shorter than the 

“Before” road.
Efficiency Gains

ADHS Economic Evaluation 4-4

Vehicle Hours Saved

By shortening the travel distance, and by increasing the speed limit, and by reducing congestion 

and by making it easier to pass slow moving vehicles, the ADHS is estimated to save

considerable travel time. Exhibit 4-3 suggests that the studied corridors save 62.2 million car 

hours and 9.8 million truck hours annually. This is a huge efficiency gain attributable to the 

ADHS.

Exhibit 4-3. Annual Vehicle Hours of Travel

(Thousand Hours)

1995

Car Hours Truck Hours

Corridor Before After Savings (1) Before After Savings (1)

A/A1 9,044 6,027 3,018 774 603 171

B 40,646 25,482 15,164 6,915 4,812 2,103

D 18,583 11,532 7,051 3,373 2,490 883

E 14,575 8,466 6,110 2,790 1,806 984

F 7,806 5,828 1,977 1,301 1,080 222

I 5,027 3,519 1,508 1,069 835 234

J 13,690 8,990 4,700 2,515 1,820 695

L 8,189 4,609 3,580 1,479 1,038 440

P 8,246 5,449 2,797 1,258 849 409

Q 19,137 11,601 7,536 2,663 1,906 757

T 23,890 15,171 8,719 10,241 7,314 2,927

All Corridors 168,834 106,675 62,159 34,379 24,554 9,825

Savings in vehicle hours result from shorter trip distances on shortened ADHS highways, higher speed limits on ADHS,

reduced congestion on ADHS, and increased ability to pass other vehicles on ADHS.
Efficiency Gains

ADHS Economic Evaluation 4-5

TRAVEL EFFICIENCY BENEFITS

These gains in travel efficiency attributable to the ADHS are assigned a monetary value, as 

described in Chapter 2. The values reflect three types of travel efficiency gains: travel time, 

travel cost, and accidents.

Travel Time Savings

The first gain of value to the trip maker is the economic benefit associated with the amount of 

time required to travel through the various corridors. There are potentially three different ways to 

reduce travel time: (1) reducing mileage to reach one’s destination by offering a shorter route, (2) 

increasing the speed at which one can travel by providing facilities with higher design standards, 

and (3) reducing congestion (or making it easier to pass) by providing improved or additional 

facilities. 

Each ADHS corridor was evaluated with respect to the estimated travel time savings between 

the year of opening of the various segments and 1995, as well as the projected savings between 

1996 and 2024. Different values of travel time were assigned by trip purpose -- auto-business, 

auto-non-business, and truck trips (see Chapter 2). 

Exhibit 4-4 identifies the expected annual monetary benefits estimated to be attributable to travel 

time savings for the years 1995 and 2024. In addition, both the mean and median annual 

benefits were estimated for each corridor. All twelve corridors provide positive annual time 

savings benefits. Improvements in ADHS Corridors B and T provide the largest overall travel 

time benefits, in part because these two corridors are the longest. Corridor I provides the lowest 

overall travel time benefit due to a combination of shorter corridor and lower average ADT. In 

total, the twelve corridor improvements are estimated to generate an average annual travel time 

savings of $1.0 billion.

Exhibit 4-4 also identifies the cumulative total time benefits from 1965 to 2024, and splits these 

time benefits to contrast those benefits accrued already (1965-1995) with those projected in the 

future (1996-2025). Overall only about 18 percent of travel time benefits have already occurred 

while 82 percent are yet to occur. The reasons for this disparity are: (1) few of these corridors 

actually opened in 1965 but several years later, (2) time savings are linked directly to the amount 

of traffic using the facilities, and since traffic is increasing in the corridors, time savings per year 

are also increasing.

Overall, one of the most quantifiable direct benefits to travellers is the time savings estimated to 

be attributable to the ADHS. Total annual time benefits of $785.8 million in 1995 and $2.4 billion 

by the year 2024 represent significant savings to the residents of and visitors to the Appalachian 

Region. As a proxy for accessibility, the time saved represents a considerable jump in travel 

efficiency.
Efficiency Gains

ADHS Economic Evaluation 4-6

Exhibit 4-4. Value of Travel Time Savings ($, Thousands)

Corridor A/A1 B D E F I

Annual Travel Time 

Benefits

Year 1995 $30,436 $184,198 $82,973 $78,232 $22,601 $18,921

Year 2024 66,817 556,498 150,983 177,254 53,203 34,399

Mean (1) 40,535 233,850 81,272 81,792 25,407 19,455

Median (2) 41,727 197,036 86,491 81,647 23,656 19,454

Total Undiscounted Benefits

1965-1995 $233,573 $2,403,187 $1,124,873 $908,066 $333,716 $328,045

1996-2024 1,428,363 10,926,241 3,426,367 3,754,055 1,114,455 780,868

 Total $1,661,936 $13,329,428 $4,551,239 $4,662,121 $1,448,171 $1,108,913

Corridor J L P Q T Total

Annual Travel Time 

Benefits

Year 1995 $58,319 $41,980 $34,648 $83,848 $149,656 $785,812

Year 2024 362,347 149,740 129,835 203,444 579,769 2,464,289

Mean (1) 125,355 60,388 54,168 94,561 240,859 1,011,766

Median (2) 79,287 51,270 39,572 85,910 179,319 814,751

Total Undiscounted Benefits

1965-1995 $642,865 $427,108 $600,802 $1,259,018 $2,455,499 $10,716,750

1996-2024 6,251,675 2,833,818 2,432,603 4,225,534 10,791,723 47,965,703

 Total $6,894,540 $3,260,925 $3,033,405 $5,484,552 $13,247,222 $58,682,453

(1) Mean is the average value.

(2) Median is the value wherein half of the other values are above, and half below, the

 stated median value.
Efficiency Gains

ADHS Economic Evaluation 4-7

Vehicle Operating Cost (VOC) Savings

The costs of operating motor vehicles are a significant portion of the total cost of transportation. 

Vehicle operating costs include a number of components, some of which are variable costs 

(use-related), others of which are fixed costs (insurance and license fees which typically do not 

vary with use). Only use-related costs -- engine oil, gasoline, maintenance, and tires -- are 

directly affected by an improved highway. Vehicle operating costs, like travel time, vary with the 

characteristics of the trip being made including trip length, running speeds, and speed change 

cycles. Using the same data as for the travel time, vehicle operating costs with and without the 

ADHS were calculated. 

In many cases, vehicle operating costs may increase after completion of a highway

improvement; when this occurs it is usually because vehicles traveling at faster speeds are less 

efficient than vehicles traveling at slower speeds (it costs more to drive a car at 65 mph than it 

costs at 45 mph). Also, vehicle operating costs may increase if the new road is longer than the 

road it replaces. On the other hand, improvements completed on corridors with moderate to 

severe levels of congestion tend to improve vehicle operating costs as vehicles no longer 

experience a large number of speed change cycles. In addition, if improvements reduce the 

grades of a corridor, vehicle operating costs decrease, especially for trucks. 

Seven (A/A1, D, E, F, L, P, and Q) of the twelve ADHS corridors are estimated to generate 

increased vehicle operating costs, while the remaining four corridors (B, I, J, and T) generate 

vehicle operating cost savings. Exhibit 4-5 depicts both the annual and total vehicle operating 

cost savings for the twelve corridors under study. 

Overall, improvements in the twelve corridors under study resulted in vehicle operating cost 

increases of $11 million in 1995 due to the increases in speed. However, as traffic increases, 

VOC savings due to the relief of congestion increase and by 2024 exceeds speed related VOC 

increases so that VOC benefits are estimated at nearly $72 million in 2024. Improvements in 

ADHS Corridor B result in the largest VOC benefits while corridor D generates the most VOC 

increases. The 9 percent reduction in corridor B length combined with high traffic explains the 

results for corridor B. The relatively low traffic on corridor D results in lower congestion reduction 

to counterbalance the increase in speed due to widening a 2-lane corridor to 4 lanes.
Efficiency Gains

ADHS Economic Evaluation 4-8

Exhibit 4-5. Vehicle Operating Cost Savings ($ Thousands) 

1995

Corridor A/A1 B D E F I

Annual Cost Benefits

Year 1995 ($7,564) $15,633 ($11,298) ($979) ($1,169) $625 

Year 2024 (11,449) 64,750 (16,690) (10,492) (2,105) 928 

Mean (1) (8,328) 23,756 (10,358) (3,429) (1,095) 595 

Median (1) (8,770) 17,326 (11,577) (1,955) (1,201) 635 

Total Undiscounted Benefits

1965-1995 ($63,827) $163,999 ($171,541) ($24,352) ($14,490) $11,247 

1996-2024 (277,630) 1,190,106 (408,525) (171,098) (47,948) 22,669 

 Total ($341,456) $1,354,104 ($580,066) ($195,450) ($62,437) $33,916 

Corridor J L P Q T Total

Annual Cost Benefits

Year 1995 $926 ($4,270) ($754) ($5,429) $3,101 ($11,178)

Year 2024 23,281 (6,995) (977) (12,600) 43,892 71,541 

Mean (1) 6,944 (4,135) (4,135) (5,976) 13,315 12,092 

Median (1) 2,792 (4,505) (904) (5,552) 5,914 (1,143)

Total Undiscounted Benefits

1965-1995 $19,765 ($58,602) ($26,380) ($81,622) $30,521 ($215,282)

1996-2024 362,176 (164,707) (25,205) (265,000) 701,785 916,623 

 Total $381,940 ($223,309) ($51,586) ($346,622) $732,306 $701,340 

Note:

(1) Mean and Median calculated from earliest opening year of a corridor segment to 

year 2024.
Efficiency Gains

ADHS Economic Evaluation 4-9

Accident Savings

Improvements in highway safety comprise another reason for building highways with higher 

design standards. Multilane roadways are generally safer than 2-lane highways, so many ADHS 

improved roadways have reduced accident risks. Also, reducing curves and grades makes 

highways safer by improving visibility. 

National average injury rates by accident type (fatal, injury, property damage only) and by

highway facility type (Interstate versus collector for example) were used, as described in Chapter 

2. They were adjusted to account for the 2-lane multilane differences and used to calculate 

accident savings in the various corridors under study. However, they do not account for the likely 

accident risk reduction due to straightening a highway when no lanes are added. Therefore, the 

accident savings estimates due to the ADHS are likely underestimated. 

Accident risk is measured in accidents per 100 million vehicle miles. As a result, improved 

corridors which are longer than the ones they replace may increase accidents if the decrease in 

accident risk, due to better design, cannot overcome the increase in exposure, due to increased 

vehicle miles.

Exhibit 4-6 identifies the expected annual safety benefits by corridor for the years 1995 and 

2024, as well as the mean and median annual benefits. Improvements in ADHS Corridor B result 

in the largest overall benefit due to the combination of such factors as the length of the corridor, 

proportionally large reduction in corridor length, and high traffic volumes. Five ADHS corridors –

A/A1, E, J, P - produce negative accident cost savings. In these cases, the improved corridor is 

longer than the original corridor. Corridor A/A1 shows the largest accident disbenefits because in 

addition to increased corridor length, a larger proportion of this corridor was already multilane 

before the ADHS improvements (in such case there is no improvement in accident risk unless 

the improvements resulted in a change in roadway type).

Overall , the corridor improvements are estimated to generate annual accident cost savings of 

$47 million in 1995, and $80 million in 2024. These translate into cumulative savings of $2.5 

billion for the 1965-2024 time period (not discounted). As is the case with other benefits, the 

majority of these benefits, 76 percent, will occur in the future.
Efficiency Gains

ADHS Economic Evaluation 4-10

Exhibit 4-6. Accident Cost Savings ($, Thousands)

1995

Corridor A/A1 B D E F I

Annual Accident Benefits

Year 1995 ($6,032) $22,564 $9,753 ($3,697) $2,923 $1,217 

Year 2024 (12,114) 43,035 15,300 (8,251) 5,337 1,727 

Mean (1) (7,742) 21,373 9,154 (3,891) 2,976 1,132 

Median (1) (7,920) 23,270 10,040 (3,854) 3,007 1,235 

Total Undiscounted Benefits

1965-1995 ($45,218) $234,264 $136,822 ($42,573) $45,712 $20,332 

1996-2024 (272,190) 983,984 375,796 (179,218) 123,907 44,166 

 Total ($317,408) $1,218,247 $512,618 ($221,790) $169,619 $64,498 

Corridor J L P Q T Total

Annual Accident Benefits

Year 1995 ($1,256) $6,235 ($743) $9,575 $6,909 $47,449 

Year 2024 (12,648) 16,774 (1,558) 19,077 13,540 80,220 

Mean (1) (3,872) 7,240 (1,016) 9,770 7,501 43,553 

Median (1) (2042) 7,144 (982) 9,739 7,366 48,014

Total Undiscounted Benefits

1965-1995 ($4,403) $45,807 ($22,376) $136,874 $105,805 $611,046

1996-2024 (208,561) 345,138 (34,514) 429,786 306,740 1,915,035

 Total ($212,964) $390,945 ($56,891) $566,660 $412,545 $2,526,080

Notes:

(1) Mean and Median calculated from earliest opening year of a corridor segment to year 

2024.
Efficiency Gains

ADHS Economic Evaluation 4-11

Total Travel Efficiency Benefits

The total travel efficiency benefits include the compilation of the dollar value of travel time saved, 

reduced vehicle operating costs, and accident savings that accrue to those who drive on the 

improved corridors. Exhibit 4-7 summarizes the estimated annual travel efficiency benefits for 

the years 1995 and 2024. 

Exhibit 4-7. Annual Travel Efficiency Benefits ($ Thousands)

1995 2024

Corridor Time VOC Accident Total Time VOC Accident Total

A/A1 $30,436 -$7,564 -$6,032 $16,840 $66,817 -$11,449 -$12,114 43,255

B 184,198 15,633 22,564 222,394 556,498 64,750 43,035 664,283

D 82,973 -11,298 9,753 81,428 150,983 -16,690 15,300 149,593

E 78,232 -979 -3,697 73,556 177,254 -10,492 -8,251 158,511

F 22,601 -1,169 2,923 24,356 53,203 -2,105 5,337 56,434

I 18,921 625 1,217 20,763 34,399 928 1,727 37,054

J 58,319 926 -1,256 57,989 362,347 23,281 -12,648 372,980

L 41,980 -4,270 6,235 43,946 149,740 -6,995 16,774 159,518

P 34,648 -754 -743 33,152 129,835 -977 -1,558 127,300

Q 83,848 -5,429 9,575 87,994 203,444 -12,600 19,077 209,922

T 149,656 3,101 6,909 159,666 579,769 43,892 13,540 637,201

All 

Corridors $785,812 -$11,178 $47,449 $822,083 $2,464,289 $71,541 $80,220 $2,616,050

Exhibit 4-8 summarizes the total present value of the efficiency gains, 1965-2024. From these 

two exhibits a number of conclusions are apparent regarding the ADHS and its ability to create 

economic efficiency.
Efficiency Gains

ADHS Economic Evaluation 4-12

Exhibit 4-8

PRESENT VALUE OF TOTAL TRAVEL EFFICIENCY BENEFITS

($Thousands)

Corridor

Travel Time

Savings

Vehicle 

Operating

Cost Savings

Accident

Savings

Total

Efficiency Gains

A/A1

B

D

E

F

I

J

L

P

Q

T

Total

$105,069

1,049,252

430,767

387,641

131,034

130,097

386,875

222,867

261,422

501,308

1,072,564

$4,678,898

($24,497)

83,937

(63,663)

(12,623)

(5,318)

4,440

17,518

(20,963)

(10,412)

(31,755)

31,299

($32,037)

($21,244)

102,100

54,341

(18,653)

18,125

8,353

(8,721)

28,459

(10,354)

55,153

40,120

$247,680

$59,328

1,235,290

421,445

356,366

143,841

142,891

395,672

230,363

240,656

524,706

1,143,984

$4,894,541

ECONOMIC EFFICIENCY FINDINGS

1. Every ADHS corridor that has been completed to date has created economic efficiency 

benefits.

2. These benefits range from $16.8 million annually in 1995 (Corridor A/A1) to $664.3 million 

annually in 2024 (Corridor B).

3. Travel time savings comprise the largest single form of efficiency gain attributable to the 

ADHS.

4. The cost savings (vehicle operating costs) are generally not yet occurring, but are

estimated to occur in the future on four corridors.

5. Accident savings occur on seven of the corridors, with total annual savings of $47 million 

in 1995.

6. The total annual efficiency gains in 1995 for the twelve corridors are $822 million

annually, increasing to over $2.6 billion annually by 2024. These are very significant 

efficiency gains.

7. The total present value of the efficiency gains for the twelve corridors combined are 

valued at $4.89 billion. Clearly the ADHS is contributing to the efficiency of the

Appalachian Region.
Efficiency Gains

ADHS Economic Evaluation 4-13

ECONOMIC EFFICIENCY BENEFIT/COST RESULTS

To gauge the extent to which the completed portions of the ADHS may have constituted a good 

investment from the efficiency perspective, the efficiency gains (cost savings) were compared 

with the costs (construction plus maintenance) in the form of a benefit/cost analysis.

An example (Corridor B) of the way in which the life cycle costs and benefits were handled 1965-

2025, is shown on Exhibit 4-9. This exhibit depicts the flow of costs and benefits, by year. It 

shows, for example:

• Construction Costs – Incurred every year 1965-1995, at 1995 price levels.

• Maintenance Costs – The net increase in costs incurred by the state departments of 

transportation responsible for maintaining the roads.

• Time Savings – The increase in time savings, as traffic builds up on the highway. 

These are at constant 1995 values of time, and comprise the largest form of direct 

efficiency gain attributable to the ADHS.

• VOC Savings – Vehicle Operating Cost Savings which are true net savings in this 

corridor. These also increase over time, in real terms.

• Accident Savings – The monetary value of the lives saved and the accidents reduced, 

due to the Corridor B improvements.

• Total – The total “not discounted” benefits or costs over the analysis period.

• Discounted Total – The sum of the discounted costs and benefits 1965-2025. All are 

discounted at 7% per year. It is the discounted numbers that are used in the benefit/cost 

evaluation.

Exhibit 4-9 is an example (Corridor B). Similar tabulations for all corridors are contained in 

Appendix B.
Efficiency Gains

ADHS Economic Evaluation 4-14

Exhibit 4-9. Travel Efficiencies Benefit Cost Analysis

Corridor B - KY, NC, TN, VA

Undiscounted 1995 $1,000

Construction Maintenance TOTAL Time VOC Accidents TOTAL NET

Year Costs Costs COSTS Savings Savings Savings SAVINGS BENEFITS

1965 5,984 0 5,984 0 0 0 0 (5,984)

1966 33,033 0 33,033 0 0 0 0 (33,033)

1967 63,167 0 63,167 0 0 0 0 (63,167)

1968 93,052 (110) 92,942 4,043 686 370 5,099 (87,844)

1969 125,380 (6) 125,373 4,416 693 412 5,521 (119,852)

1970 86,661 47 86,708 10,919 (484) 1,098 11,533 (75,175)

1971 133,986 450 134,436 17,563 605 488 18,656 (115,780)

1972 139,398 771 140,169 22,928 736 2,020 25,685 (114,484)

1973 141,786 1,212 142,998 26,351 864 2,862 30,078 (112,920)

1974 94,710 1,410 96,120 35,379 1,767 3,384 40,530 (55,590)

1975 75,728 1,591 77,319 42,094 2,005 3,410 47,509 (29,810)

1976 64,509 1,825 66,333 44,991 2,047 3,576 50,614 (15,719)

1977 64,854 2,021 66,874 49,149 1,343 3,712 54,203 (12,671)

1978 68,621 2,187 70,808 52,100 1,354 3,876 57,329 (13,479)

1979 63,946 2,267 66,214 56,664 1,783 4,770 63,216 (2,998)

1980 75,310 2,258 77,569 64,120 826 5,752 70,698 (6,871)

1981 45,543 2,396 47,939 68,334 1,153 6,546 76,032 28,093 

1982 70,822 2,561 73,383 75,170 1,041 7,718 83,929 10,546 

1983 149,357 2,858 152,215 92,826 5,645 8,320 106,791 (45,425)

1984 59,264 3,130 62,394 103,499 7,086 9,454 120,039 57,645 

1985 26,260 3,422 29,681 111,711 7,271 10,702 129,684 100,002 

1986 33,775 3,686 37,461 117,178 7,571 11,162 135,912 98,451 

1987 34,177 3,831 38,008 129,782 10,855 14,931 155,568 117,560 

1988 13,964 3,917 17,881 136,034 11,427 15,714 163,175 145,294 

1989 20,890 3,956 24,846 142,286 11,999 16,498 170,783 145,937 

1990 10,166 3,995 14,161 148,539 12,571 17,281 178,391 164,230 

1991 9,803 3,995 13,798 154,791 13,143 18,064 185,998 172,200 

1992 14,077 4,013 18,090 163,052 14,215 19,911 197,178 179,088 

1993 3,677 4,031 7,708 169,375 14,793 20,715 204,882 197,174 

1994 2,000 4,049 6,049 175,698 15,371 21,518 212,587 206,538 

1995 1,351 4,126 5,477 184,198 15,633 22,564 222,394 216,918 

1996 0 4,184 4,184 197,036 17,326 23,270 237,632 233,448 

1997 0 4,242 4,242 209,874 19,020 23,976 252,869 248,627 

1998 0 4,300 4,300 222,712 20,714 24,682 268,107 263,807 

1999 0 4,300 4,300 235,550 22,407 25,388 283,344 279,044 

2000 0 4,300 4,300 248,387 24,101 26,093 298,582 294,282 

2001 0 4,300 4,300 261,225 25,795 26,799 313,820 309,519 

2002 0 4,300 4,300 274,063 27,488 27,505 329,057 324,757 

2003 0 4,300 4,300 286,901 29,182 28,211 344,295 339,995 

2004 0 4,300 4,300 299,739 30,876 28,917 359,532 355,232 

2005 0 4,300 4,300 312,577 32,570 29,623 374,770 370,470 

2006 0 4,300 4,300 325,415 34,263 30,329 390,007 385,707 

2007 0 4,300 4,300 338,253 35,957 31,035 405,245 400,945 

2008 0 4,300 4,300 351,091 37,651 31,741 420,482 416,182 

2009 0 4,300 4,300 363,929 39,344 32,447 435,720 431,420 

2010 0 4,300 4,300 376,767 41,038 33,152 450,957 446,657 

2011 0 4,300 4,300 389,605 42,732 33,858 466,195 461,895 
Efficiency Gains

ADHS Economic Evaluation 4-15

2012 0 4,300 4,300 402,443 44,426 34,564 481,433 477,132 

2013 0 4,300 4,300 415,281 46,119 35,270 496,670 492,370 

2014 0 4,300 4,300 428,119 47,813 35,976 511,908 507,608 

2015 0 4,300 4,300 440,957 49,507 36,682 527,145 522,845 

2016 0 4,300 4,300 453,795 51,200 37,388 542,383 538,083 

2017 0 4,300 4,300 466,633 52,894 38,094 557,620 553,320 

2018 0 4,300 4,300 479,470 54,588 38,800 572,858 568,558 

2019 0 4,300 4,300 492,309 56,281 39,505 588,095 583,795 

2020 0 4,300 4,300 505,146 57,975 40,211 603,333 599,033 

2021 0 4,300 4,300 517,984 59,669 40,917 618,570 614,270 

2022 0 4,300 4,300 530,822 61,363 41,623 633,808 629,508 

2023 0 4,300 4,300 543,660 63,056 42,329 649,046 644,746 

2024 0 4,300 4,300 556,498 64,750 43,035 664,283 659,983 

2025 (456,568) 0 (456,568) 0 0 0 0 456,568 

Total 1,368,683 194,415 1,563,098 13,329,428 1,354,104 1,218,247 15,901,780 14,338,682 

Discounted

Total 879,537 23,972 903,569 1,049,252 83,937 102,100 1,235,290 331,721

Net Present Value($1000) 331721

IRR (%): 8.66

Benefits/Costs Ratio: 1.37

The results of the benefit/cost analysis for all corridors are shown on Exhibit 4-10. The key 

indicators are the NPV (Net Present Value), IRR (Internal Rate of Return), and B/C (discounted 

Benefit/Cost Ratio). These should be interpreted as follows:

• An efficient project has a positive Net Present Value (NPV), an Internal Rate of Return 

(IRR) equal to or greater than the discount rate (7 percent), and a Discounted

Benefit/Cost Ratio (B/C) of 1.0 or higher.

• The higher the NPV, IRR and B/C the more efficient the project.

The benefit/cost analyses suggest a number of conclusions regarding the completed portions of 

the ADHS and their role in aiding the efficiency and productivity of the Appalachian Region. 

These conclusions include the following:

1. The corridors combined have a constant dollar (exclusive of inflation) annual rate of 

return of 7.87%. This is really quite good, and is indicative of a good investment.

2. In efficiency terms, the economy is better off by some $755 million (the NPV), as a result 

of the ADHS.

3. A combined benefit/cost ratio of 1.18 is good, given that the “economic development” 

implications of the ADHS are not included in this calculation.

4. Five of the corridors have positive economic efficiency results. This is excellent, given 

that the real purpose of these highways was economic and social development, rather 

than efficiency.
Efficiency Gains

ADHS Economic Evaluation 4-16

5. Even the corridor ranking last in terms of return on investment (Corridor E) has a

constant dollar return of 5.44% which is pretty good (if inflation were 5% and were 

included, the return would be 10.44%).

6. The total 1995 price level present value cost of these ADHS corridors is $4.1 billion; the 

total efficiency benefits are $4.9 billion. This is indicative of a prudent investment in 

Appalachia’s future.

Exhibit 4-10. Travel Efficiencies Benefit Cost Benefits

Present Value (1) Net Present

Corridor Total Costs (3) Total Benefits Value (1) Benefit/Cost

(1995 $1,000) (1995 $1,000) (1995 $1,000) IRR (2) Ratio

A/A1 $59,437 $59,328 -$109 6.99% 1.00

B 903,569 1,235,290 331,721 8.66 1.37

D 537,746 421,445 -116,301 5.83 0.78

E 482,524 356,366 -126,158 5.44 0.74

F 194,003 143,841 -50,162 5.50 0.74

I 164,191 142,891 -21,300 6.20 0.87

J 263,380 395,672 132,292 8.84 1.50

L 270,059 230,363 -39,696 6.34 0.85

P 257,930 240,656 -17,274 6.64 0.93

Q 328,163 524,706 196,543 9.82 1.60

T 677,797 1,143,984 466,187 10.06 1.69

All Corridors $4,138,798 $4,894,541 $755,743 7.87% 1.18

(1) Present values in 1965 calculated using 7% discount rate.

(2) IRR: Internal Rate of Return.
Efficiency Gains

ADHS Economic Evaluation 4-17

(3) Total Costs include construction costs, residual values and maintenance costs.

NOTE: An "economically justified" investment, when using these benefit/cost results, exists when:

 * The Net Present Value is positive

 * The Internal Rate of Return is 7% or greater

 * The Benefit/Cost Ratio is 1.0 or greater

Sensitivity Tests

This study’s calculations suggest that the ADHS sections that have been completed overall 

comprise a good, economically based investment. Based on travel efficiency alone, the ADHS 

investments yielded $1.18 for each $1.00 invested (a 7.87% return on the ADHS investment).

While every attempt was made in this study to be realistic and even conservative, the

calculations are in part based on assumptions, any of which could be open to question. 

Therefore, to depict the possible effect of these assumptions on study conclusions, five

sensitivity tests were conducted. The sensitivity of study conclusions to variations in discount 

rate, travel time savings, and accident calculations were all analyzed.

Discount Rate – Exhibit 4-11 compares study results at 4%, 7%, and 10% discount rate. At 

7% (the constant dollar discount rate called for by OMB), the highways are economically 

justified. At 4%, the highways are even more justified (benefit/cost of 2.35). At 10% the 

benefit/cost is .7. A 10% real discount rate is unusually high, however, and perhaps unrealistic. 

Study results are therefore shown to be sensitive to the discount rate selected. However, since 

the study used the 7% discount rate required by the Office of Management and Budget, study 

conclusions based on the discount rate appear to be appropriate.
Efficiency Gains

ADHS Economic Evaluation 4-18

Exhibit 4-11. Travel Efficiencies Benefit Cost Sensitive Results

Variation in Discount Rates

Net Present Value (1) Benefit/Cost Ratio

Corridor 4% 7% 10% IRR (2) 4% 7% 10%

A/A1 $99,627 -$109 -$22,748 6.99% 2.20 1.00 0.49

B 2,059,397 331,721 -138,489 8.66 2.73 1.37 0.80

D 357,141 -116,301 -239,154 5.83 1.54 0.78 0.46

E 242,279 -126,158 -199,585 5.44 1.36 0.74 0.46

F 101,912 -50,162 -84,110 5.50 1.41 0.74 0.45

I 111,929 -21,300 -60,424 6.20 1.57 0.87 0.57

J 845,811 132,292 39,200 8.84 3.23 1.50 0.79

L 305,749 -39,696 -117,847 6.34 1.90 0.85 0.46

P 270,435 -17,274 -84,620 6.64 1.79 0.93 0.57

Q 862,674 196,543 -6,670 9.82 3.09 1.60 0.97

T 2,034,674 466,187 4,995 10.06 3.30 1.69 1.01

All Corridors $7,353,361 $772,829 -$979,143 7.88% 2.35 1.18 0.70

(1) Thousands of 1995 dollars discounted at 7 percent.

(2) IRR: Internal Rate of Return.

Variations in Value of Travel Time – Although both the values of time and the methods of 

calculating the amount of time saved are based on conventional techniques, other values and 

techniques could have been used. To test study conclusions sensitivity to travel time,

benefit/cost calculations were run using a 20% reduction and then a 20% increase in travel time 

benefits. The results are presented on Exhibit 4-12.
Efficiency Gains

ADHS Economic Evaluation 4-19

At the time values used in the study, the ADHS is economically justified. If the time savings or 

values were 20% greater, the benefit/cost would increase from 1.18 to 1.41. If values of 20% 

less were used, the benefit/cost would be 0.96. In other words, time values of 20-50% less 

would be needed in order for the ADHS to have questionable travel efficiency value. This is 

unlikely.

Exhibit 4-12. Travel Efficiencies Benefit Cost Sensitivity Results

Variation in Time Savings

Net Present Value (1) IRR (2)

Benefit/Cost Ratio

(3)

Corridor -20% Base 20% -20% Base 20% -20% Base 20%

A/A1 -$21,123 -$109 $20,905 5.33% 6.99% 8.24% 0.64 1.00 1.35

B 121,871 331,721 541,572 7.64 8.66 9.61 1.13 1.37 1.60

D -202,455 -116,301 -30,148 4.83 5.83 6.71 0.62 0.78 0.94

E -203,687 -126,158 -48,630 4.29 5.44 6.43 0.58 0.74 0.90

F -76,369 -50,162 -23,955 4.59 5.50 6.32 0.61 0.74 0.88

I -47,319 -21,300 4,720 5.15 6.20 7.17 0.71 0.87 1.03

J 54,917 132,292 209,667 7.83 8.84 9.73 1.21 1.50 1.80

L -84,269 -36,696 4,878 5.51 6.34 7.08 0.69 0.85 1.02

P -69,558 -17,274 35,010 5.47 6.64 7.71 0.73 0.93 1.14

Q 96,282 196,543 296,805 8.46 9.82 11.09 1.29 1.60 1.90

T 249,509 466,187 674,550 8.74 10.06 11.29 1.37 1.69 2.01

All Corridors ($160,957) $755,743 $1,706,616 6.80% 7.88% 8.86% 0.96 1.18 1.41

(1) Thousands of 1995 dollars discounted at 7 percent.

(2) IRR: Internal Rate of Return.

(3) Discounted at 7 percent.

Sensitivity to Accidents – The final sensitivity test questioned results in four corridors where 

the number of accidents were estimated to increase due to the ADHS. In Exhibit 4-13 no 
Efficiency Gains

ADHS Economic Evaluation 4-20

accident increases were included in the analysis. As shown, study results are not sensitive to 

this accidents issue.

Exhibit 4-13. Travel Efficiencies Benefit Cost Sensitivity Results

Excluding and Including Negative Accident Values

Net Present Value (1) IRR(2) Benefit/Cost Ratio(3)

Corridor Including 

Negative 

Accident 

Values

Excluding 

Negative 

Accident 

Values

Including 

Negative 

Accident 

Values

Excluding 

Negative 

Accident 

Values

Including 

Negative 

Accident 

Values

Excluding 

Negative 

Accident 

Values

A/A1 -$109 $21,135 6.99% 8.27% 1.00 1.36

B 331,721 331,721 8.66 8.66 1.37 1.37

D -116,301 -116,301 5.83 5.83 0.78 0.78

E -126,158 -107,506 5.44 5.69 0.74 0.78

F -50,162 -50,162 5.50 5.50 0.74 0.74

I -21,300 21,300 6.20 6.20 0.87 0.87

J 132,292 141,690 8.84 8.95 1.50 1.54

L -39,696 -39,696 6.34 6.34 0.85 0.85

P -17,274 -6,920 6.64 6.85 0.93 0.97

Q 196,543 196,543 9.82 9.82 1.60 1.60

T 462,030 463,529 10.06 10.08 1.69 1.69

(1) Thousands of 1995 dollars discounted at 7 percent.

(2) IRR: Internal Rate of Return.

(3) Discount at 7 percent.
ADHS Economic Evaluation 5-1

Chapter 5

ECONOMIC IMPACTS DUE TO THE ADHS

The travel efficiencies of Chapter 4 are one of the key components for documenting and

measuring the economic gains attributable to the ADHS and provide critical data for estimating 

the economic development benefits of the ADHS. The ADHS as envisaged by Congress was 

intended to stimulate economic development in the Appalachian Region by making the Region 

more accessible, and better able to compete with other regions of the US. This chapter develops 

an estimate of the economic development impacts on Appalachian Region believed attributable 

to the completed portions of the ADHS. Specifically, this section of the report analyzes the jobs, 

wages and value-added from new production that can be quantified as impacts of the ADHS. 

In order to measure how the ADHS has helped promote economic development in the

Appalachian Region, this chapter implements the methods that were explained in Chapter 2 for 

estimating the job creation, wages and value-added that are attributable to the ADHS. The valueadded estimates are then divided by the ADHS life cycle costs, and an economic impact/cost 

ratio is thereby derived.

ECONOMIC DEVELOPMENT OVERVIEW

The effectiveness of the ADHS in creating economic opportunity in the Appalachian Region is 

quantified by the use of the REMI regional economic model. The direct efficiency benefits that 

arise from shorter travel times, reduced vehicle operating costs for business and non-business 

uses, and improved safety of the ADHS provide the data input into REMI model. In turn, the REMI 

model generates detailed, regionally specific, estimates of the economic development impacts, 

as measured by jobs, wages and value-added by industries within the impact region.

Do Not Add Economic Benefits and Economic Impacts

A note of caution: the economic benefits (efficiencies) of Chapter 4 should not be added to the 

economic development impacts of Chapter 5. The limited extent to which some of the benefits 

and impacts can be properly added together is already done in the Chapter 5 impact/cost 

analysis. No further adding of benefits and impacts should be made—any such summation 

would be to double count the implications of the ADHS.

Four Indicators of Economic Development Impact

The economic development impacts of the ADHS investments are measured in four ways. Use 

of these four measures allows ADHS diverse impacts to be documented in a consistent fashion. 

The following “impact indicators” are used. These should not in any way be added together.

• Value Added – The dollar value of increased economic production in the Appalachian

Region because of the ADHS. It is the value of the region firms’ output minus the value of the 

inputs they purchase from other firms. In this study it is the value added by firms located in 

the defined impact region(s), including employee compensation, proprietary income, indirect 

business taxes, and other property income. This value can be thought of as the net increase 

in gross regional product (GRP) for the Appalachian Region.
Economic Development

ADHS Economic Evaluation 5-2

• Wages – Total increases in payroll costs (wages, salaries, and benefits) paid by local 

industries to employees who owe their jobs, directly or indirectly, to the ADHS.

• Employment – Employment impacts are net changes in number of jobs due to the ADHS 

expressed as “full-time equivalents” (FTE’s). These FTE’s include the number of jobs 

directly attributable to ADHS highway use, plus the share of those employed in sectors that 

indirectly support the road users, and the firms that might expand in or locate to the 

Appalachian Region. In addition, the people in the new jobs will spend much of their income 

in the Region and this respending will in turn create additional jobs, which are also included in 

the study.

• Population – Total population dependent on the new jobs created by the ADHS.

These four statistics are the best available measures for the economic impact derived from the 

improved corridors. Each of the impact statistics is presented based on the impact the corridors 

have had or will have on the Appalachian economy in the past, present, and in the future. In 

order to do so, the economic impact statistics are presented for the years 1975, 1995, and 2015. 

All monetary calculations are expressed in constant 1995 price levels. The full results for each 

of the tables are presented in Appendix C.

ECONOMIC DEVELOPMENT IMPACTS

The economic development impacts are calculated for each year 1965-2025, by impact type and 

cause. For impact/cost evaluation purposes, the impacts are discounted by seven percent per 

year, and summed. The total sum of the discounted economic impacts are shown on Exhibit 5-

1.

Exhibit 5-1

ADHS TOTAL LIFE CYCLE ECONOMIC DEVELOPMENT IMPACT

Discounted at 7%

1965-2025

Economic Impact on Appalachian Region

Competitive Advantage $2,699,500,000

Roadside Services 253,070,000

Tourism 235,968,000

Total ADHS Operations Impacts $3,188,538,000

Construction Impacts (a) 1,457,585,000

Total Appalachian Region Impacts $4,646,123,000(b)

(a) The Region impacts due to the act of spending the federal construction funds in the Region should be 

excluded from any analysis that attempts to justify the use of these funds.

(b) Excludes accident savings and some other travel efficiencies. 

The total net life cycle economic development impacts discounted at 7 percent per year indicate 

that the completed sections of the ADHS as operating is worth $3.2 billion to the Appalachian 

economy (excluding the impacts attributable to the expenditure of the federal funds). When the 
Economic Development

ADHS Economic Evaluation 5-3

state and federal fund expenditures are included, the impacts total an estimated $4.6 billion. 

Clearly the ADHS has created sizable economic value for the Appalachian Region. A summary 

of these impacts by type and year follows.

Estimated Competitive Advantage Impacts

A major ARC objective is to create economic development for the Appalachian Region by 

expanding existing businesses, by attracting new businesses, and by diversifying the area’s 

economic base. To expand and attract businesses, the Region must be competitive with other 

areas of the US and the world. It has been clear in recent years that there is a high level of 

competition among regions of the US for economic development. Keeping transportation costs 

as low as possible is one way that the ARC can help the Appalachian Region to be more 

competitive and to strengthen its business climate. Facilitating faster and more efficient travel 

along the corridors represents a logical means for increasing the competitive advantage of 

communities along the corridors. These lower transportation costs may be passed on to 

consumers as lower prices for consumer goods, to workers as higher wages, or to owners of 

businesses and firms as higher net income. Therefore, individuals can benefit from the

improved corridors without even traveling on them. 

To estimate the economic impact attributable to making the Region more competitive, the 

efficiencies are distributed across a number of industries within REMI as cost savings based on 

the importance of each of the industries to the total Appalachia Region. The importance of each 

industry is based upon the number of employees each industry has as a percentage of the total 

employees of the Appalachia Region. Once the values are placed into REMI as an input, the 

REMI model calculates the effect of reinvestment of these savings into the corridor region and 

estimates the amount of new business in the region attributable to the increased competitive 

position of the industries within the region. 

The estimated annual economic impact from an improved competitive position for the

Appalachian Region is listed in Exhibit 5-2. The exhibit suggests that the improved competitive 

position has led to significant economic impacts in the past, and is likely to lead to significant 

impacts in the future. The table lists the annual dollar economic impact for three different years 

(1975, 1995, and 2015) and the net total jobs and resident population for the specific year. While 

Exhibit 5-2 displays the growth of economic development resulting from an improved

competitive position for selected years, Exhibit 5-3 displays the growth over time.

Exhibit 5-2

COMPETITIVE ADVANTAGE ECONOMIC IMPACT

(All dollar values expressed in 1995 dollars, not discounted)

Year Employment Population Wages Value Added

1975 1,790 2,317 $15,560,000 $54,840,000

1995 12,200 22,750 $324,800,000 $444,830,000

2015 35,800 73,900 $1,001,050,000 $1,752,250,000

While the economic impact of the improved competitive position is rather modest in the initial 

years, about 1,800 new permanent jobs and valued added of nearly $55 million in 1975, the 
Economic Development

ADHS Economic Evaluation 5-4

economic impact grows substantially over time. In 1995, the improved competitive position of 

the twelve corridors is estimated to have created over 12,000 new permanent jobs and over 

$444 million of value added. By year 2015, these values are expected to grow to over 35,000 

new jobs with a value added of $1.75 billion by the Year 2015. On average, this would mean that 

each improved corridor would create about 3,000 permanent jobs by year 2015. 

Exhibit 5-3

ECONOMIC IMPACT FROM COMPETITIVE ADVANTAGE 

(In Terms of Value Added)

1995 $

0

500

1000

1500

2000

2500

196519721979198619932000200720142021

Years

In Millions of $

This substantial economic impact growth is largely due to the increased volume of traffic over 

time. In the initial years, only a few of the corridors had been developed and therefore the travel 

time and VOC savings for the initial years was rather modest. As more and more corridors are 

developed, the travel time savings and VOC savings grow and, as a result, the economic impact 

grows. 

The sheer magnitude of the competitive position economic impact that these roads are having 

currently, and are likely to have in the future, highlights the importance of good transportation 

network for the businesses in a region. This is especially true for a region like Appalachia, which 

has historically lagged the rest of the U.S in economic growth. 
Economic Development

ADHS Economic Evaluation 5-5

Roadside Services Impact

The second economic development impact component is the economic impact attributable to 

Roadside Services. Roadside Services comprise those firms which sell goods and services 

that cater to the traffic along a highway. As described in Chapter 3, these roadside services 

include gasoline stations, hotels/motels, restaurants, gift shops, and other businesses that are

typically located near the highways. As traffic volumes increase, so do the number of roadside 

service establishments. The economic impact estimates from the increased number of

establishments are based on estimates of dollars spent on roadside services per vehicle mile of 

travel (VMT). The increase in roadside service expenditures is entered into REMI model, which 

traces the respending of the expenditures through the regional economy and forecasts the future 

repercussions of such expenditures. 

Exhibit 5-4 lists the annual roadside expenditure economic development impacts for the twelve 

corridors combined. The wages and value added numbers are annual impacts in the stated 

years; the employment and population numbers represent the net change that exists, by year. 

Like the competitive advantage impacts, the economic impact created from roadside

expenditures is relatively small in the initial years, but the impact grows as the traffic volumes 

increase and as the number of ADHS segments that are open to traffic increases. 

Exhibit 5-4

ROADSIDE EXPENDITURE ECONOMIC IMPACT

(All dollar values expressed in 1995 dollars, not discounted)

Year Employment Population Wages Value Added

 1975 (a) 320 270 $2,970,000 $8,190,000

1995 1,390 1,980 $33,220,000 $54,870,000

2015 2,960 4,790 $81,500,000 $118,410,000

(a) In the early years (1975) the ADHS effect is greater on employment than on population. The reason is

 higher labor force participation rates due to the ADHS, and the ability to commute further distances to 

work.

This growth is also shown in Exhibit 5-5. By the Year 2015, the impact is quite substantial as 

nearly 3,000 permanent jobs are created with a value added to the Appalachian Region of over 

$118 million. To give some perspective, this translates into an additional 250 permanent jobs 

(on average) per corridor by the year 2015.
Economic Development

ADHS Economic Evaluation 5-6

Exhibit 5-5

ECONOMIC IMPACT FROM ROADSIDE SERVICES 

(In Terms of Value Added)

1995 $

0

40

80

120

160

19651971197719831989199520012007201320192025

Years

In Millions of $

Tourism Impact

The ADHS corridors also have the opportunity to influence tourism, to the advantage of the 

Appalachian Region. Tourists spent considerable sums while traveling, and if additional tourists 

find their way to Appalachia due to the ADHS, that is good for the economy. A number of the 

study corridors serve tourist facilities and locations and, as access is improved due to the 

ADHS, tourists are influenced. The economic impacts believed attributable to these tourism 

effects are estimated in the study.

A typical family vacationing in the area spends substantially more money than a person who is 

just passing through the area. These visitors create economic activity through money they 

spend shopping, staying at hotels, eating at restaurants, and visiting amusement and recreation 

centers. A vacationing family could inject hundreds of dollars per day into the local economy and 

create a substantial economic impact through the multiplier effect of these dollars. This 

multiplier effect is estimated by REMI for the Appalachian Region. 
Economic Development

ADHS Economic Evaluation 5-7

Exhibit 5-6 lists this estimated impact for the three example years. Similar to the economic 

impact from improved competitive position and increased expenditures in roadside services, the 

economic impact that results from tourism is rather modest in the initial years (only 320 new 

jobs and a value added of $7.35 million created by 1975), but this impact grows substantially 

over time (almost 2,900 new jobs and a value added of over $100 million by the Year 2015) and 

its growth is shown in Exhibit 5-7. The impact per corridor is slightly less than economic impact 

from the expenditures of the roadside services as nearly 250 permanent jobs will be created on 

average per corridor. 

Exhibit 5-6

ECONOMIC IMPACT FROM TOURISM

(All dollar values expressed in 1995 dollars, not discounted)

Year Employment Population Wages Value Added

1975 320 280 $2,430,000 $7,350,000

1995 1,290 1,930 $33,440,000 $52,850,000

2015 2,920 4,880 $75,250,000 $108,110,000

Exhibit 5-7

ECONOMIC IMPACT FROM TOURISM 

(In terms of Value Added)

$1995

0

40

80

120

160

19651971197719831989199520012007201320192025

Years

In Millions of $
Economic Development

ADHS Economic Evaluation 5-8

Construction Economic Impact

The fact that federal dollars are imported into the Region to build the ADHS is of economic value 

to the Region. The economic impact value of these expenditures to the Region is calculated by 

the REMI model. The construction cost of designing and building the highways is treated as a 

positive economic shock to the economy in the REMI model. The model determines the amount 

of materials, labor, etc., that can be supplied locally and then estimates the total economic 

development impacts to the region created by highway construction. This impact includes 

money that is respent through a multiplier effect in the area. While this is a tremendous impact 

for any one region of the country, it is viewed as a zero net gain to the nation as a whole. The 

funding for the construction project may result in economic gain for the Appalachian Region can 

be viewed as a lost opportunity of economic development for another region of the country that 

did not get a project funded; therefore, from the national perspective there is a zero net gain. 

Over $4.6 billion (current dollars) has been spent in the Appalachian Region on the construction 

of the improved corridors of the ADHS. Exhibit 5-8 displays the estimated economic impact 

directly due to the act of making these construction expenditures. Most of the expenditures 

occurred in the years between 1965-1995 with only maintenance expenditure occurring after 

Year 1995. In 1975, it is estimated that the money spent on building the ADHS accounted for 

3,600 new full time equivalent jobs and a value added impact of over $109 million. This 

translates into 300 new permanent jobs, on average, per corridor. By 2015, only lingering 

effects from the initial construction expenditures coupled with the effects from the maintenance 

expenditure is occurring. It is projected that the capital projects will account for 500 new 

permanent jobs with a value added of nearly $23 million by year 2015.

Exhibit 5-8

ECONOMIC IMPACT FROM CONSTRUCTION

(All dollar values expressed in 1995 dollars, not discounted)

Year Employment Population Wages Value Added

1975 3,680 11,820 $47,110,000 $109,900,000

1995 1,390 3,760 $34,620,000 $58,200,000

2015 509 910 $19,960,000 $22,990,000

Exhibit 5-9 presents these impacts over time. The key point is that the construction impacts 

are large during the construction period, and small after the money is spent and the highway is 

open. After the year 1995, there is no construction on these completed highway sections and 

the impact that then occurs is due to the increased highway maintenance expenditures.
Economic Development

ADHS Economic Evaluation 5-9

Exhibit 5-9

ECONOMIC IMPACT FROM CONSTRUCTION EXPENDITURES 

(In Terms of Value Added)

1995$

0

100

200

300

19651971197719831989199520012007201320192025

Years

In Millions of $

Economic Development Impact Summary

A summary of the total estimated economic impact on the Appalachian Region from the

improved corridors is displayed in Exhibit 5-10. This is a summary of the economic impacts 

from the competitive advantage, roadside services, tourism, and the construction expenditure. 

In examining the table, it is evident that twelve improved corridors have had, and will continue to 

have, a significant positive impact for the Region. The impact these corridors is having on the 

economy has grown over time and is projected to create over 42,000 new jobs and over $2 

billion of value added impact by the year 2015. Examining the average impact per corridor 

indicates that over 3,500 permanent jobs are estimated to be created per corridor by the year 

2015. 

Exhibit 5-10

TOTAL ECONOMIC IMPACT

(All dollar values expressed in 1995 dollars, not discounted)

Year Employment Population Wages Value Added

1975 6,100 14,700 $68,070,000 $180,280,000

1995 16,260 30,420 $426,080,000 $610,750,000

2015 42,190 84,480 $1,177,770,000 $2,001,760,000
Economic Development

ADHS Economic Evaluation 5-10

Exhibit 5-11

TOTAL ECONOMIC IMPACT

(In Terms of Value Added)

1995 $

0

1000

2000

3000

196519721979198619932000200720142021

Years

In Millions of $

Impacts by Industry Type

A wide variety of firms and economic sectors have benefited from the ADHS. These include 

firms and industries that use the highways, as well as firms and industries that supply goods and 

services to those who build the highways, and use the highways.

Exhibit 5-12 lists ten economic sectors, and indicates the estimated number of jobs within each 

sector that is attributable to the ADHS.
Economic Development

ADHS Economic Evaluation 5-11

Exhibit 5-12

EMPLOYMENT IMPACTS BY ECONOMIC SECTOR

Three Example Years

1975 1995 2015

Economic Sector Employ Percent Employ Percent Employ Percent

Manufacturing 195 3.20% 1,003 6.13% 3,348 7.94%

Mining 34 0.56% 68 0.42% 201 0.48%

Construction 3,059 50.24% 1,010 6.17% 2,479 5.88%

Trans and Pub Utilities 120 1.97% 380 2.32% 1,174 2.78%

Finance and Insurance 112 1.84% 550 3.36% 1,548 3.67%

Retail Trade 899 14.76% 4,378 26.75% 12,078 28.63%

Wholesale Trade 89 1.46% 338 2.07% 1,091 2.59%

Services 835 13.71% 6,339 38.73% 14,832 35.16%

Agr/Forestry/Fish Srv 23 0.38% 371 2.27% 656 1.56%

Government 723 11.87% 1,931 11.80% 4,778 11.33%

TOTAL 6,089 16,368 42,185

These statistics indicate that the construction industries are the first to benefit but then, later 

when the highways are open to traffic, the services and retail trade sectors benefit the most. 

These statistics also suggest that all of the economic sectors are estimated to benefit from the 

ADHS.

Economic Development Conclusions

Clearly the 12 completed ADHS highway corridors have had a significant positive impact on the 

people of the Appalachian Region. For example:

• By the year 2015 it is estimated that 42,000 jobs will exist in the Region that, without 

the ADHS, would not have existed in the Region.

• The net increase in annual value added will be over $2 million by 2015. The total 

present value of the life cycle net increase in value added is $3.2 billion excluding 

construction impacts ($4.6 billion including construction impacts).

• The total life cycle economic impact of the 12 ADHS corridors, including the value 

added plus the portion of the travel efficiency benefits then can properly be added, is 

$5.5 billion in discounted 1995 price levels.

ECONOMIC DEVELOPMENT IMPACT/COST RESULTS

In Chapter 4 an economic benefit/cost comparison was developed, and the benefit/cost result 

was a 1.18, indicating that the ADHS significantly contributed to the economic efficiency of the 

Appalachian Region. Chapter 5 indicates that the ADHS does more than merely increase 

efficiency; it also creates economic development opportunities for the Appalachian Region (jobs, 

wages, value added).
Economic Development

ADHS Economic Evaluation 5-12

To gauge the magnitude of this economic development relative to the costs incurred, an 

“Impact/Cost Ratio” is also developed. This ratio divides the total life cycle value added impact 

accruing to the Appalachian Region by the total life cycle costs incurred by the ADHS program 

(the state and federal dollars).

Impact/Cost Results

The results of this economic development/cost calculation are presented on Exhibit 5-13. The 

impacts used in this calculation include those due to:

• Competitive position

• Roadside expenditures

• Tourism

• Accident savings

• Other efficiencies

Excluded are the impacts attributable to the actual expenditure of federal funds in the Region.

Exhibit 5-13

ECONOMIC IMPACT/COST RESULTS

Net Present

Value

($000)

Internal

Rate of

Return

Benefit/Cost

Ratio

Economic Development Results (a) $1,344,376 8.2% 1.32

(a) These impacts exclude the impacts directly attributable to the expenditure of the federal funds to build the 

ADHS.

According to Exhibit 5-13:

• The economic values accruing to the Appalachian Region are greater than the federal 

costs of creating those Regional impacts.

• For each $1.00 invested, $1.32 is generated in economic impact value.

• The Appalachian Region is better off by $1.3 billion more than the cost of building the 

ADHS.

• With a positive Net Present Value, an Internal Rate of Return of 8.29%, and a Benefit/Cost 

Ratio of 1.32, the 12 ADHS corridors evaluated in this study are found to have had a 

positive impact on the Region, and a positive impact that exceeds the costs of the ADHS.
Economic Development

ADHS Economic Evaluation 5-13

According to these statistics, the completed portions of the Appalachian Development Highway 

System have clearly had a very significant economic development impact on the Appalachian 

Region. The ADHS highways have caused places in the Region to be more accessible, and 

have created significant perceived efficiencies. These in turn have made the Region to be a 

better place to live, work, and invest, which in turn have created economic opportunity. The 

results are:

1. Enhanced Economic Growth – job opportunities, resident population, increased wages, 

and increased economic prediction (value added).

2. Economically Viable Highway Investments – the economic development impact values 

exceed the costs, implying feasible projects.

Costs in the Impact/Cost Calculation

The costs of the twelve corridors included in the impact/cost calculation include the cost of 

purchasing the right-of-way, designing, constructing, and maintaining the facility. Exhibit 5-14

shows the construction and maintenance costs of the twelve corridors combined over the study 

period. The construction costs include the cost of designing the roads, constructing the major 

structures, relocating utilities, purchasing the right-of-way, and the constructing of the actual 

road.

As shown in the exhibit, highway construction costs end in the Year 1995, with only maintenance 

expenditures remaining for the rest of the study period. The largest outlay of construction 

expenditures occurs in 1973 when over $850 million (in 1995 dollars) was spent on the various 

corridors. Over time, the expenditures gradually decreased until 1995 when $34 million was 

spent. From 1996 to the end of the study period, it is estimated that the net increase in highway 

maintenance costs will be about $30 million per year, or $2.5 million per corridor per year. 

Impacts in the Impact/Cost Calculation

The impacts from the improved corridors may be realized in a number of ways, including 

improved traffic safety, decreases in fuel and other vehicle operation costs, increased tourism, 

attraction of new industry, and an increase in roadside businesses. These impacts not only 

accrue to individuals who use the roads, but can be passed on to others in the Appalachian 

Region through lower prices for consumers, higher wages for workers, and increased profits for 

businesses.
Economic Development

ADHS Economic Evaluation 5-14

Exhibit 5-14

ADHS COSTS BY YEAR IN IMPACT/COST CALCULATION

(Thousands of 1995 $, Not Discounted)

Note: This exhibit presents statistics that are not discounted. In the economic analysis, the 

construction costs are later discounted at 7 percent per year and summed. The total present 

values are shown on the bottom of each column of the exhibit. 

Construction Maintenance Total Construction Maintenance Total

Year Costs Costs Costs Year Costs Costs Costs

1965 19,909.17 0.00 19,909.17 1996 0 29,840.35 29,840.35

1966 117,537.62 0.00 117,537.62 1997 0 30,010.16 30,010.16

1967 235,723.29 -29.90 235,693.39 1998 0 30,135.53 30,135.53

1968 335,328.64 -245.98 335,082.67 1999 0 30,135.53 30,135.53

1969 539,689.93 146.43 539,836.36 2000 0 30,135.53 30,135.53

1970 551,169.13 568.53 551,737.65 2001 0 30,135.53 30,135.53

1971 775,138.19 2,021.84 777,160.03 2002 0 30,135.53 30,135.53

1972 775,403.32 3,266.79 778,670.10 2003 0 30,135.53 30,135.53

1973 848,293.45 4,742.13 853,035.58 2004 0 30,135.53 30,135.53

1974 658,781.88 6,862.97 665,644.85 2005 0 30,135.53 30,135.53

1975 392,227.75 8,595.57 400,823.32 2006 0 30,135.53 30,135.53

1976 288,077.65 10,938.39 299,016.03 2007 0 30,135.53 30,135.53

1977 239,776.97 13,071.29 252,848.26 2008 0 30,135.53 30,135.53

1978 198,702.43 14,239.57 212,942.00 2009 0 30,135.53 30,135.53

1979 232,395.91 16,047.11 248,443.02 2010 0 30,135.53 30,135.53

1980 180,917.07 17,483.04 198,400.11 2011 0 30,135.53 30,135.53

1981 137,288.78 19,099.60 156,388.38 2012 0 30,135.53 30,135.53

1982 174,858.95 20,526.69 195,385.64 2013 0 30,135.53 30,135.53

1983 217,589.03 21,412.51 239,001.54 2014 0 30,135.53 30,135.53

1984 111,262.23 22,442.54 133,704.77 2015 0 30,135.53 30,135.53

1985 87,355.88 23,330.84 110,686.72 2016 0 30,135.53 30,135.53

1986 77,072.95 24,166.09 101,239.04 2017 0 30,135.53 30,135.53

1987 99,511.97 24,866.60 124,378.56 2018 0 30,135.53 30,135.53

1988 74,047.16 25,162.71 99,209.87 2019 0 30,135.53 30,135.53

1989 94,384.55 25,560.73 119,945.28 2020 0 30,135.53 30,135.53

1990 65,354.81 25,893.20 91,248.01 2021 0 30,135.53 30,135.53

1991 65,859.41 26,324.39 92,183.81 2022 0 30,135.53 30,135.53

1992 61,637.56 27,294.46 88,932.02 2023 0 30,135.53 30,135.53

1993 19,278.90 28,119.92 47,398.82 2024 0 30,135.53 30,135.53

1994 9,813.27 28,840.12 38,653.39 2025 -1,317,796.54 0.00 -1,317,796.54

1995 4,888.89 29,655.08 34,543.97

Discounted Present Value 3,978,268.05 160,530.34 4,138,798.39
Economic Development

ADHS Economic Evaluation 5-15

Therefore, the impacts include not only the economic development impacts, but also the direct 

benefits of an improved travel efficiency on the corridors. The direct travel efficiency benefits 

include the non-business travel efficiencies of travel time savings and vehicle operating savings 

along with the savings from a reduced number of accidents. The total impacts of the twelve 

corridors experience steady growth over the study period and reach $1 billion by year 1997. By 

the end of the study period (2025), the value of the annual impacts is estimated to total almost $4 

billion. 

The total discounted impact types are shown in Exhibit 5-15. In the exhibit, the improved 

competitive advantage of businesses creates over 49 percent of the total impact derived. NonBusiness Benefits in the form of travel time and vehicle operating cost savings represents the 

next largest impact.1 The remaining impacts (Roadside Services, Tourism Impacts, and 

Accident Savings) each represent 4 to 5 percent of the total benefits.

Exhibit 5-15

BREAKDOWN OF TOTAL DISCOUNTED IMPACTS BY TYPE (a)

 (1965-2025)

Competitive 

Advantage

49%

Roadside 

Services

5%

Tourism

4%

Accident 

Savings

5%

Non-business 

Savings

37%

(a) This exhibit summarizes the total impacts, of all

types, used in the impact/cost calculations.

In Exhibit 5-16, these impacts and benefits are shown per year. In the exhibit, columns B, C, 

and D are the economic development impacts (the value added impacts) of competitive

advantage, roadside services, and tourism per year. Columns E and F are the travel efficiency 

impacts of Non-business savings (auto travel time and VOC savings) and Accident Savings. 

Column G represents the sum of the total economic development impacts and the relevant 

portion of the travel efficiency benefits.

 

1

The reason the Non-Business Benefits represent such a large percentage of the total benefits is that over 

85 percent of all traffic is non-business related. This large portion of the traffic creates substantial benefits.
Economic Development

ADHS Economic Evaluation 5-16

Exhibit 5-16

TOTAL IMPACTS IN IMPACT/COST CALCULATION

(All Values in thousands of 1995 $)

Note: Columns B, C, and D represent the “value added” impacts. Columns E and F are the portion of 

the efficiencies that are independent of the value added impact. Together they constitute the total 

ADHS impact.

A B C D E F G

Competitive Roadside/ Tourism Accidents N-bus auto Total

Year Advantage Impact Impact Benefit Savings Benefit

1965 0 0 0 0 0 0

1966 0 0 0 0 0 0

1967 100 50 50 -271 333 262

1968 2,180 610 220 1,017 6,711 10,738

1969 3,430 860 790 831 9,163 15,073

1970 5,740 1,640 1,480 1,560 13,945 24,365

1971 11,690 2,800 2,550 2,516 26,542 46,098

1972 17,160 3,650 3,300 4,946 34,128 63,184

1973 24,480 4,860 4,380 7,108 43,049 83,876

1974 40,240 7,070 6,370 9,804 66,247 129,730

1975 54,840 8,190 7,350 10,853 79,583 160,815

1976 71,090 9,130 8,200 14,028 94,306 196,754

1977 83,790 10,340 9,290 14,465 101,801 219,686

1978 99,300 11,540 10,390 17,624 115,616 254,470

1979 115,240 13,290 11,950 20,535 131,315 292,330

1980 126,110 14,790 13,290 23,089 143,743 321,022

1981 139,690 14,970 13,460 24,227 153,247 345,594

1982 145,870 15,650 14,100 25,885 161,691 363,196

1983 162,670 16,450 14,850 27,966 179,343 401,279

1984 188,360 18,220 16,420 28,010 194,936 445,946

1985 205,320 21,550 18,240 29,497 205,377 479,985

1986 225,780 24,880 21,710 32,753 220,265 525,388

1987 246,790 28,210 25,170 36,722 234,058 570,950

1988 271,250 31,550 28,630 37,256 248,557 617,243

1989 297,690 34,880 32,090 38,020 259,360 662,039

1990 316,480 38,210 35,550 38,414 270,901 699,555

1991 327,180 41,540 39,010 39,078 280,331 727,139

1992 359,160 44,880 42,470 40,564 299,309 786,383

1993 385,610 48,210 45,930 41,479 309,629 830,858

1994 417,980 51,540 49,390 43,070 326,188 888,168

1995 444,830 54,870 52,850 47,449 343,459 943,458

1996 502,790 58,200 56,310 48,579 371,421 1,037,300

1997 549,740 60,270 58,380 49,709 399,384 1,117,483

1998 605,810 61,790 59,860 50,839 427,346 1,205,645

1999 667,590 63,320 61,270 51,969 455,309 1,299,458

2000 713,120 64,910 62,820 53,099 483,271 1,377,221

2001 744,520 66,770 64,550 54,229 511,234 1,441,303

2002 810,210 68,980 66,670 55,359 539,196 1,540,416

2003 873,940 71,890 69,100 56,489 567,159 1,638,578

2004 944,240 75,690 71,790 57,619 595,121 1,744,461

2005 1,059,200 79,900 74,390 58,749 623,084 1,895,323

2006 1,129,920 85,190 77,350 59,879 651,046 2,003,386

2007 1,202,030 88,590 80,560 61,009 679,009 2,111,198

2008 1,272,240 92,140 83,820 62,139 706,972 2,217,311

2009 1,342,310 95,840 87,250 63,269 734,934 2,323,604

2010 1,411,400 99,560 90,740 64,400 762,897 2,428,996

2011 1,480,740 103,290 94,190 65,530 790,859 2,534,609

2012 1,549,810 107,000 97,650 66,660 818,822 2,639,941

2013 1,617,190 110,790 101,080 67,790 846,784 2,743,634

2014 1,686,020 114,600 104,560 68,920 874,747 2,848,846

2015 1,752,250 118,410 108,110 70,050 902,709 2,951,529

2016 1,817,360 110,430 111,620 71,180 930,672 3,041,261

2017 1,885,710 113,930 115,160 72,310 958,634 3,145,744

2018 1,951,270 117,460 118,610 73,440 986,597 3,247,377

2019 2,017,210 121,030 122,070 74,570 1,014,559 3,349,439

2020 2,082,250 124,490 125,520 75,700 1,042,522 3,450,482

2021 2,148,830 127,910 128,960 76,830 1,070,484 3,553,014

2022 2,220,060 131,450 132,370 77,960 1,098,447 3,660,287

2023 2,292,760 134,910 135,730 79,090 1,126,410 3,768,899

2024 2,366,390 138,340 139,140 80,220 1,154,372 3,878,462

2025 0 0 0 0 0 0

Discounted present value 2,699,500 253,070 235,968 247,680 2,175,020 5,483,175
Economic Development

ADHS Economic Evaluation 5-17

The Impact/Cost Calculation

In order to place the economic impacts into perspective (relative to the cost outlays which 

generated the impacts), an impact/cost calculation is made. In this calculation, the net

economic impacts accruing to the Appalachian Region are divided by the ADHS costs paid by 

the Nation.

The complete impact/cost calculation is shown on Exhibit 5-17. On this exhibit:

Columns

B, C, D, E, F, G, I are at 1995 price levels, not discounted

K, L are discounted at 7% per year

B, C, D, E, F, G are all economic impacts which can properly be added together

J is the present worth factor at 7% per year

Year 2025 cost is the residual value of the highways in that year

PV at the bottom of each column is the present value sum of each column, discounted at 

7% per year

The Exhibit 5-17 conclusion is that the economic impact/cost comparison indicates that the 

ADHS positive impact on the Appalachian Region is greater than the total ADHS cost. The key 

conclusions are:

1. The total economic return on investment is an attractive constant dollar return of 8.29% 

per year.

2. The Appalachian Region is better off by an estimated $1.3 billion more than the total cost 

of building and maintaining the ADHS.

3. Each $1.00 invested yields $1.32 in economic development benefit for the Appalachian 

Region.

4. While the efficiency benefit/cost analysis indicated an economically feasible ADHS

(benefit/cost of 1.18), the ADHS from an economic development perspective is even more 

attractive (impact/cost ratio of 1.32).
Economic Development

ADHS Economic Evaluation 5-18

Exhibit 5-17

IMPACT-COST ANALYSIS

7 Percent Discount Rate

(All values in 1995 dollars not discounted)

A B C D E F G I J K L

Competitive Roadside/ Tourism Accidents N-bus auto Total N et Benefit - Present-Worth Discounted Discounted

Year Advantage Impact Impact Benefit Savings Benefit Costs Factor Costs Benefits

1965 0 0 0 0 0 0 -19,909 1.0000 19,909 0

1966 0 0 0 0 0 0 -117,538 0.9346 109,848 0

1967 100 50 50 -271 333 262 -235,432 0.8734 205,864 229

1968 2,180 610 220 1,017 6,711 10,738 -324,344 0.8163 273,527 8,766

1969 3,430 860 790 831 9,163 15,073 -524,763 0.7629 411,839 11,499

1970 5,740 1,640 1,480 1,560 13,945 24,365 -527,372 0.7130 393,381 17,372

1971 11,690 2,800 2,550 2,516 26,542 46,098 -731,062 0.6663 517,855 30,717

1972 17,160 3,650 3,300 4,946 34,128 63,184 -715,486 0.6227 484,917 39,348

1973 24,480 4,860 4,380 7,108 43,049 83,876 -769,159 0.5820 496,474 48,817

1974 40,240 7,070 6,370 9,804 66,247 129,730 -535,915 0.5439 362,067 70,565

1975 54,840 8,190 7,350 10,853 79,583 160,815 -240,008 0.5083 203,758 81,750

1976 71,090 9,130 8,200 14,028 94,306 196,754 -102,262 0.4751 142,060 93,477

1977 83,790 10,340 9,290 14,465 101,801 219,686 -33,162 0.4440 112,268 97,543

1978 99,300 11,540 10,390 17,624 115,616 254,470 41,528 0.4150 88,363 105,596

1979 115,240 13,290 11,950 20,535 131,315 292,330 43,887 0.3878 96,350 113,371

1980 126,110 14,790 13,290 23,089 143,743 321,022 122,622 0.3624 71,909 116,353

1981 139,690 14,970 13,460 24,227 153,247 345,594 189,206 0.3387 52,974 117,065

1982 145,870 15,650 14,100 25,885 161,691 363,196 167,811 0.3166 61,854 114,979

1983 162,670 16,450 14,850 27,966 179,343 401,279 162,278 0.2959 70,712 118,724

1984 188,360 18,220 16,420 28,010 194,936 445,946 312,241 0.2765 36,970 123,308

1985 205,320 21,550 18,240 29,497 205,377 479,985 369,298 0.2584 28,604 124,037

1986 225,780 24,880 21,710 32,753 220,265 525,388 424,149 0.2415 24,451 126,888

1987 246,790 28,210 25,170 36,722 234,058 570,950 446,572 0.2257 28,074 128,871

1988 271,250 31,550 28,630 37,256 248,557 617,243 518,033 0.2109 20,928 130,205

1989 297,690 34,880 32,090 38,020 259,360 662,039 542,094 0.1971 23,647 130,519

1990 316,480 38,210 35,550 38,414 270,901 699,555 608,307 0.1842 16,812 128,892

1991 327,180 41,540 39,010 39,078 280,331 727,139 634,955 0.1722 15,874 125,210

1992 359,160 44,880 42,470 40,564 299,309 786,383 697,451 0.1609 14,312 126,553

1993 385,610 48,210 45,930 41,479 309,629 830,858 783,459 0.1504 7,129 124,963

1994 417,980 51,540 49,390 43,070 326,188 888,168 849,514 0.1406 5,433 124,843

1995 444,830 54,870 52,850 47,449 343,459 943,458 908,914 0.1314 4,538 123,939

1996 502,790 58,200 56,310 48,579 371,421 1,037,300 1,007,460 0.1228 3,664 127,352

1997 549,740 60,270 58,380 49,709 399,384 1,117,483 1,087,473 0.1147 3,443 128,221

1998 605,810 61,790 59,860 50,839 427,346 1,205,645 1,175,510 0.1072 3,232 129,287

1999 667,590 63,320 61,270 51,969 455,309 1,299,458 1,269,322 0.1002 3,020 130,231

2000 713,120 64,910 62,820 53,099 483,271 1,377,221 1,347,085 0.0937 2,823 128,995

2001 744,520 66,770 64,550 54,229 511,234 1,441,303 1,411,168 0.0875 2,638 126,165

2002 810,210 68,980 66,670 55,359 539,196 1,540,416 1,510,280 0.0818 2,465 126,020

2003 873,940 71,890 69,100 56,489 567,159 1,638,578 1,608,443 0.0765 2,304 125,281

2004 944,240 75,690 71,790 57,619 595,121 1,744,461 1,714,325 0.0715 2,153 124,650

2005 1,059,200 79,900 74,390 58,749 623,084 1,895,323 1,865,188 0.0668 2,012 126,570

2006 1,129,920 85,190 77,350 59,879 651,046 2,003,386 1,973,250 0.0624 1,881 125,034

2007 1,202,030 88,590 80,560 61,009 679,009 2,111,198 2,081,063 0.0583 1,758 123,143

2008 1,272,240 92,140 83,820 62,139 706,972 2,217,311 2,187,175 0.0545 1,643 120,872

2009 1,342,310 95,840 87,250 63,269 734,934 2,323,604 2,293,468 0.0509 1,535 118,379

2010 1,411,400 99,560 90,740 64,400 762,897 2,428,996 2,398,861 0.0476 1,435 115,653

2011 1,480,740 103,290 94,190 65,530 790,859 2,534,609 2,504,473 0.0445 1,341 112,787

2012 1,549,810 107,000 97,650 66,660 818,822 2,639,941 2,609,806 0.0416 1,253 109,788

2013 1,617,190 110,790 101,080 67,790 846,784 2,743,634 2,713,498 0.0389 1,171 106,636

2014 1,686,020 114,600 104,560 68,920 874,747 2,848,846 2,818,711 0.0363 1,095 103,482

2015 1,752,250 118,410 108,110 70,050 902,709 2,951,529 2,921,393 0.0339 1,023 100,198

2016 1,817,360 110,430 111,620 71,180 930,672 3,041,261 3,011,126 0.0317 956 96,490

2017 1,885,710 113,930 115,160 72,310 958,634 3,145,744 3,115,609 0.0297 894 93,275

2018 1,951,270 117,460 118,610 73,440 986,597 3,247,377 3,217,241 0.0277 835 89,990

2019 2,017,210 121,030 122,070 74,570 1,014,559 3,349,439 3,319,304 0.0259 780 86,746

2020 2,082,250 124,490 125,520 75,700 1,042,522 3,450,482 3,420,346 0.0242 729 83,516

2021 2,148,830 127,910 128,960 76,830 1,070,484 3,553,014 3,522,879 0.0226 682 80,372

2022 2,220,060 131,450 132,370 77,960 1,098,447 3,660,287 3,630,151 0.0211 637 77,382

2023 2,292,760 134,910 135,730 79,090 1,126,410 3,768,899 3,738,764 0.0198 595 74,466

2024 2,366,390 138,340 139,140 80,220 1,154,372 3,878,462 3,848,326 0.0185 556 71,617

2025 0 0 0 0 0 0 1,317,797 0.0173 -22,742 0

Discounted

Present 

Value 2,699,500 253,070 235,968 247,680 2,175,020 5,483,175 1,344,376 4,138,798 5,483,175

7.00% IRR = 8.29%

1.32 NPV = 1,344,376.32
Economic Development

ADHS Economic Evaluation 5-19

Sensitivity Tests

The economic development impacts and impact/cost results, while valid, are nevertheless 

sensitive to certain key assumptions and other uncertainties. To depict this, three sensitivity 

tests were conducted. The first added the construction impacts to the economic development 

impacts. The second used a constant dollar discount rate of 4%, and the third used a discount 

rate of 10%.

The results of the sensitivity tests are shown on Exhibit 5-18. As shown, only at the

unrealistically high discount rate of 10% does the ADHS become infeasible.

Exhibit 5-18

ECONOMIC DEVELOPMENT IMPACT/COST SENSITIVITY RESULTS

Net Present

Value

($000)

Internal

Rate of

Return

Benefit/Cos

t

Ratio

Feasibility Test (a) $1,344,376 8.29% 1.32

Including Construction (b) $2,801,961 10.55% 1.68

Excluding Construction, 4% (c) $9,971,179 8.29% 2.84

Excluding Construction, 10% (d) ($897,072) 8.29% .72

(a) The basic test of highway feasibility, suggesting that the ADHS has a legitimate economic 

rationale.

(b) A sensitivity test wherein the impacts of spending the federal funds in the Region are 

included as economic impacts. ADHS economic feasibility is enhanced when the

construction expenditures are included.

(c) A sensitivity test using a 4% discount rate. ADHS economic feasibility is enhanced.

(d) A sensitivity test using a 10% discount rate. ADHS feasibility is questioned -- but 10% is an 

unrealistically high constant dollar (excluding inflation) discount rate.

ECONOMIC DEVELOPMENT CONCLUSIONS

From the beginning, the ARC has strived to generate and support economic development in the 

Appalachian Region. An important method has been the investment in new and improved 

highways. ARC’s investments have created economic activity in the form of jobs, increased 

income, increased wages, increased production, and an overall improvement in living standard. 

Both the Impact/Cost and the Benefit/Cost analyses have shown that this investment has 

resulted in a feasibility ratio of greater than 1.0. This means that the people, businesses, and 

communities of the Appalachian Region have gained considerably from the highway

investments. The results of the analysis provide strong support for the past investment in ADHS 

highways.
ADHS Economic Evaluation 6-1

Chapter 6

ADHS COMPLETED SECTIONS ECONOMIC EVALUATION 

CONCLUSIONS

This study examined the completed portions of the Appalachian Development Highway System 

and sought to determine the economic benefits and economic impacts estimated for the

completed portions of the ADHS. The study then compared those economic benefits and 

impacts with the tax dollars used to build and maintain the highways, in an attempt to determine 

what the highway investments have achieved toward net economic development. The study 

results are summarized in this chapter in four ways:

• Economic Efficiency Benefits;

• Economic Development Impacts;

• Economic Evaluation Results; and

• Study Conclusions.

The study results, from all of these perspectives, indicate that the completed portions of the 

Appalachian Development Highway System have in fact attained their economic development 

objectives. As a result of the ADHS, the Appalachian Region has become a better place to live 

and work, the Region is more efficient, job opportunities have been created and the Region is 

better able to compete with other regions of the US for economic activity.

ECONOMIC EFFICIENCY BENEFITS

The efficiency benefits calculated in this study are those net user cost savings that FHWA and 

other highway agencies typically and traditionally calculate when economically evaluating a 

highway project – travel time savings, vehicle operating cost savings, and accident savings. The 

total efficiency benefits for three example years for the twelve corridors combined are shown on 

Exhibit 6-1.

Exhibit 6-1

EFFICIENCY GAINS DUE TO ADHS COMPLETED SECTIONS

Appalachian Region

($Thousands)

Annual Savings

Savings Type 1975 1995 2015

Time Savings

Operating Cost Savings

Accident Savings

Total Efficiency Gains

$207,129

(10,855)

 10,853

$207,127

$785,812

(11,178)

 47,449

$822,083

$1,943,382

45,870

 70,050

$2,059,302
Evaluation Conclusions

ADHS Economic Evaluation 6-2

From a travel perspective, the ADHS corridors clearly make places in the Region more

accessible, by dramatically reducing the time it takes to travel from one place to another. The 

ADHS makes travel in the Appalachian Region safer and more efficient.

But this is only a part of the total ADHS economic value. These efficiencies in turn cause the 

Appalachian Region to be a better place to work and invest, which creates economic opportunity 

as discussed below.

ECONOMIC DEVELOPMENT IMPACTS

The study’s findings indicate that the completed portions of the ADHS have had a positive effect 

on the economic well being of the residents and businesses of the Appalachian Region. The 

ADHS has helped the Region to retain and attract jobs and resident population, and has 

contributed to the Region’s economic health and production (as measured by employment 

opportunities, resident population, wages and value added).

Job Impacts

The ADHS has provided access to portions of the Region, has helped the Region to be better 

able to compete economically, and has generally helped to retain some firms, and to attract 

other firms. All of this has helped to create job opportunities in the Appalachian Region.

Exhibit 6-2 summarizes the net number of jobs in the Appalachian Region estimated to be due 

to the completed portions of the ADHS. Currently there are an estimated 16,000 jobs in

existence in Appalachia due to the twelve completed ADHS corridors and it is forecast that there 

will be over 42,000 jobs attributable to these same twelve ADHS corridors by the year 2015. As 

a percentage of total employment in the Appalachian Region, 42,000 jobs is slight; but, in terms 

of helping the Appalachian Region to retain its residents and offer new opportunities, this is a 

significant job impact.

Exhibit 6-2

JOBS INCREASE DUE TO ADHS COMPLETED SECTIONS

Appalachian Region

Jobs in Any Single Year

Due To 1975 1995 2015

Competitive Advantage

Roadside Expenditures

Tourism

ADHS Construction

Total Jobs

1,790

320

320

3,680

6,100

12,200

1,390

1,290

1,390

16,270

35,800

2,960

2,920

 510

42,190

In 1995 only 11 percent of the jobs attributable to the ADHS were due to the act of constructing 

the highways (the expenditure of the state and federal funds); 89 percent of the jobs were due to 

the fact that the highways are open and making the Appalachian Region to be more attractive for 

private investment.
Evaluation Conclusions

ADHS Economic Evaluation 6-3

Population Impacts

The twelve ADHS corridors are also expected to help the Region to retain and/or attract

population. This is principally because of the job opportunities attributable to the ADHS. The 

total population increase (retained or attracted) estimated to be due to the twelve ADHS corridors 

is shown on Exhibit 6-3.

Exhibit 6-3

POPULATION INCREASE DUE TO ADHS COMPLETED SECTIONS

Appalachian Region

Population in Any Single Year

Due To 1975 1995 2015

Competitive Advantage

Roadside Expenditures

Tourism

ADHS Construction

Total Population

2,320

270

280

11,820

14,690

22,750

1,980

1,930

3,760

30,420

73,900

4,790

4,880

 910

84,480

The vast majority of this population is due to the estimated Competitive Advantage caused by the 

ADHS. In effect, the study suggests that the ADHS helps the Appalachian Region to better 

compete, and this helps to retain and attract both job opportunities and resident population.

Wages Impacts

Because jobs will be retained or attracted that otherwise would be lost to the Appalachian 

Region, wages are paid that would also be otherwise lost. These are summarized on Exhibit 6-

4. These total over $400 million in 1995, and are estimated at over $1.1 billion by the year 2015. 

This implies that the ADHS has been successful in attracting jobs.

Exhibit 6-4

WAGES INCREASE DUE TO ADHS COMPLETED SECTIONS

Appalachian Region

($Thousands)

Annual Wages

Due To 1975 1995 2015

Competitive Advantage

Roadside Expenditures

Tourism

ADHS Construction

Total Population

$15,560

2,970

2,430

47,110

$68,070

$324,800

33,220

33,440

34,620

$426,080

$1,001,050

81,500

75,250

 19,960

$1,177,760
Evaluation Conclusions

ADHS Economic Evaluation 6-4

Value Added Impacts

One way of summarizing the total net economic impact of the twelve corridors in the

Appalachian Region is to present the impacts in “value added” terms. Value Added is intended 

to represent the total net inflow of impacts into the Appalachian Region. It includes the effect of 

the wage increases, a major portion of the productivity and efficiency gains, and other forms of 

quantifiable economic benefit and impact. In the calculation of value added impacts, care was 

taken to avoid the double counting of impacts.

The total value added impacts, by year, are shown on Exhibit 6-5. These are estimated at $1.0 

billion in 1995, and over $2.9 billion annually by the year 2015. These values are much of the 

impacts used in the impact/cost calculations.

Because the construction impacts are early in the process, and because their value tapers off 

once the construction is complete, the construction impacts of Exhibit 6-5 occur early. Then, 

following that, the impacts attributable to highway use occur and increase over time.

Exhibit 6-5

VALUE ADDED DUE TO ADHS COMPLETED SECTIONS

Appalachian Region

($Thousands)

Annual Value Added

Due To 1975 1995 2015

Competitive Position

Roadside Expenditures

Tourism

Other Efficiencies

ADHS Construction

Total Value Added

$54,840

8,190

7,350

90,436

 109,900

$270,715

$444,830

54,870

52,850

390,908

 58,200

$1,001,658

$1,752,250

118,410

108,110

 972,759

 22,990

$2,974,519

Total Impacts and Benefits

Exhibit 6-6 summarizes the total 1965-2025 costs, benefits and impacts, all discounted at 7 

percent per year. These are the net total present values that represent the life cycle analysis. 

As shown, the efficiency benefits exceed the costs (benefit/cost of 1.18), and the economic 

development impacts also exceed the costs, even when the Construction Impacts are excluded.
Evaluation Conclusions

ADHS Economic Evaluation 6-5

Exhibit 6-6

TOTAL DISCOUNTED COSTS, BENEFITS, AND IMPACTS

Completed Segments of ADHS

1965-2025

TOTAL COSTS

Capital Costs

Maintenance Costs

Total Costs

$3,978,268,000

160,530,000

$4,138,798,000

TOTAL EFFICIENCY BENEFITS

Time Savings

Vehicle Operating Costs

Accident Savings

Total Benefits

$4,678,898,000

(32,037,000)

247,680,000

$4,894,541,000

TOTAL DEVELOPMENT IMPACTS

Competitive Advantage

Roadside Impact

Tourism Impact

Other Efficiencies (a)

Construction Impact (b)

Total Impacts

$2,699,500,000

253,070,000

235,968,000

2,422,700,000

1,457,585,000

$6,940,760,000

(a) Accident savings and non-business other efficiencies not included in the competitive 

advantage, roadside, and tourism impacts.

(b) Economic value of the federal funds, in terms of hiring road construction workers, etc. Should 

not be used as benefit when trying to justify the federal expenditure.
Evaluation Conclusions

ADHS Economic Evaluation 6-6

ECONOMIC EVALUATION RESULTS

The completed segments of twelve ADHS corridors were evaluated from three different

perspectives, with the results summarized on Exhibit 6-7.

Exhibit 6-7

ECONOMIC EVALUATION RESULTS

Twelve Completed ADHS Corridors

Perspective

Net Present

Value 

Internal

Rate of Return

Benefit or 

Impact/Cost

Ratio

Economic Efficiency $+755,743,000 7.87% 1.18

Regional Economic Development $+1,344,376,000 8.29 1.32

Economic Development Incl. Construction $+2,801,961,000 10.55 1.68

 

Evaluation Rules: The Appalachian Development Highway System is economically justified (has an economic rationale) if:

• The Net Present Value is positive (+).

• The Internal Rate of Return is 7.0% or greater.

• The Benefit/Cost Ratio is 1.0 or greater.

NOTE: Economic Efficiency, Regional Economic Development, and Economic Development Including Construction should 

never be added together. To do so would be to double count.

SOURCE: Wilbur Smith Associates

Economic Efficiency Results

From a travel efficiency perspective (excluding economic development impacts), the ADHS 

corridors completed to date are estimated to have a legitimate economic rationale. The present 

value of the economic efficiency gains exceeds the ADHS costs by $755 million, with a constant 

dollar 7.9% return on investment.

Given that efficiency gains of this type exclude transfer payments and double counting, it is 

concluded that the ADHS completed segments make sense economically from the national 

perspective. The gains in efficiency and productivity exceed the costs incurred, returning $1.18 

for every $1.00 expended.
Evaluation Conclusions

ADHS Economic Evaluation 6-7

Regional Economic Development Results

The Appalachian Regional Commission was established to aid the economic and social well 

being of the Appalachian Region. Therefore, the extent to which the ADHS has been found to 

assist the Region with its economic development goals is a very relevant issue for the

Appalachian Regional Commission.

For purposes of the economic impact/cost expenditure calculation, the impacts due to the direct 

expenditure of federal funds are excluded (so as to not attempt to use the expenditure of the 

funds as a reason to spend the federal funds).

The result, as shown on Exhibit 6-7 for Net Present Value, is a very attractive $1.34 billion. This 

means that the residents of the Appalachian Region benefited from the ADHS by $1.34 billion 

more than the ARC administered federal expenditure of funds to build the ADHS. The ADHS 

appears to have been a good use of federal investment dollars. 

The economic rate of return of 8.29% (in constant dollars) and a discounted impact/cost ratio of 

1.32 reinforce the Net Present Value findings. According to this study’s calculations, the

economic development impacts of the completed portions of the ADHS exceed the cost budget 

for the ADHS. The ADHS seems to be achieving its economic development goals.

Economic Development Results, Including Construction Impacts

The above conclusions might be viewed as conservative, in that they do not include the impacts 

that occur in the Region when federal funds are spent in the Region. When the effects of this 

federal funding are included, the results become even more favorable to the ADHS. When these 

construction impacts are included, the NPV is a positive $2.8 billion, the IRR is 10.55%, and the 

Benefit/Cost is 1.68. All of these are very attractive and are indicative of a prudent investment. 

Clearly the federal expenditures on the ADHS have had positive benefits and impacts on the 

Appalachian Region.

STUDY CONCLUSIONS

This study examined the twelve ADHS corridors that are complete or nearly complete. It 

examined the corridors from the economic efficiency perspective and from the Appalachian 

Region’s economic development perspective. The study’s key issues were identified in Chapter 

1. What follows are the answers to these issues based on the results of this study.
Evaluation Conclusions

ADHS Economic Evaluation 6-8

Question #1: To what extent, and in way ways, does the ADHS make the Appalachian 

Region more efficient?

Conclusion: By supplementing the individual state highway investments, the ADHS provides 

highways that might not have otherwise been built within the Region. These ADHS highways 

created benefits in the form of travel efficiencies valued at $4.89 billion (1965-2025). Improved 

road conditions and access have resulted in greater efficiency. The efficiencies are quantified 

as accident savings and travel efficiency savings. By making the Region to be more efficient 

and accessible, economic opportunity has expanded.

Question #2: Has the ADHS directly or indirectly caused job opportunities retention and 

attraction in the Appalachian Region? How many job opportunities are believed

attributable to the completed portions of the ADHS?

Conclusion: The study’s calculations find that by 1995 there was a net increase of

approximately 16,000 jobs that would not have existed without the completed portions of the 

ADHS; it is estimated that these twelve corridors will have yielded a net of 42,000 Appalachian 

jobs by the year 2015. These jobs are estimated to have occurred because the ADHS made the 

Region more accessible and more efficient as a place to invest, live, and work. The ADHS has 

played a role in retaining and attracting jobs to the Appalachian Region.

Question #3: Has the ADHS led to increased production in the Region? How much?

Conclusion: According to this study’s estimates, the net increase in value added was $1 billion 

in 1995, and will increase to $2.9 billion by the year 2015. The total present value of this 

increased production is $6.9 billion (1965-2025). Clearly the ADHS has been successful in 

increasing the Region’s production, which of course results in increased job opportunities and 

increased wages.

Question #4: Federal funds have been used to build the ADHS. Has the desired

economic development occurred? Is the magnitude of that development sufficient to 

indicate that the ADHS is a good, prudent investment?

Conclusion: The use of federal funds to build these ADHS highways has clearly yielded 

economic progress for the Appalachian Region. In comparing the net value added increases 

with the amount of funds used to build and maintain the highways, an impact/cost ratio of 1.32 is 

determined. This is indicative of a good, prudent investment.

Question #5: What is the economic rate of return on the federal investment? Is it 

sufficient to indicate that this was a good use of tax payer funds?

Conclusion: The economic rate of return on the federal investment from an efficiency 

perspective is 7.87 percent and from the Region’s economic development perspective is 8.29 

percent per year (in constant dollars; if inflation were included, the rate of return is higher). This 

is a solid return on the investment. Over the life cycle of the ADHS, for each $1 invested, the 

return is $1.18 in efficiency, and a total of $1.32 in total economic impact ($1.68 when the 
Evaluation Conclusions

ADHS Economic Evaluation 6-9

construction expenditure impacts are included). These are indicative of a good use of tax payer 

funds.

Question #6: How do the various ADHS completed corridors compare, one with the 

others? Do they all appear to have been sound investments? 

Conclusion: All of the twelve completed ADHS corridors produce efficiency benefits, from a per 

corridor low of $59 million (Corridor A/A1) to a high of $1.2 billion (Corridor B). The individual 

corridor efficiency returns on investment range from 5.44 percent per year (Corridor E) to 10.06 

percent (Corridor T). In other words, they all yield a rate of return of a reasonable size. The rate 

of return for all twelve corridors from the travel efficiency perspective is a very respectable 7.87 

percent per year. While some corridors are better than others, they all appear to have been 

reasonable investments.

Question #7: To what extent have the ADHS corridors benefited the highway users? The 

non-users? Do people have to use the ADHS corridors in order to benefit from them?

Conclusion: The most direct beneficiary is the highway user. The users have benefited 

because the highways dramatically increased travel speeds, reduced accidents, and made 

Appalachian Region places more accessible. By making the Region more accessible, nonusers of the highways were positively impacted—due to job creation, better jobs (wages), and 

other opportunities. Therefore, the ADHS highways appear to have benefited the people of 

Appalachia, even those who do not use the specific highways.

Question #8: Have the completed ADHS corridors helped the Appalachian Region to 

compete on a more equal basis with other regions of the US for economic development?

Conclusion: The largest single impact attributable to the ADHS is the fact that the completed 

ADHS highways have helped the Appalachian Region to be better able to compete for economic 

opportunity. This competitiveness is valued at $2.7 billion (1965-2025). Clearly, the ADHS has 

helped the Region to make progress, even though the system is not yet complete.

The Appalachian Development Highway System, as originally conceived by the U.S. Congress, 

was intended to help the economy of the Appalachian Region. This study examined the ADHS, 

to determine whether the completed portions of the ADHS have attained their objective.

The ADHS cannot take credit for all growth, or even a majority of the growth, in Appalachia’s last 

thirty-two years. But it can take credit for enough growth (42,000 jobs, 84,000 people, $2.9 billion 

wages, $6.9 billion value added) to show that the ADHS has been a good investment in

Appalachia’s, and America’s, future.
APPENDIX

This Appendix contains detailed information which supports and explains 

the results contained in the study’s report chapters. The three

appendices are as follows:

Appendix A: Revised Economic Model – In order to apply 

the 1995 REMI economic model to both the past (1965-

1994) and the future (1996-2025), certain modifications and 

analyses were necessary. Appendix A describes those

economic model changes and analyses.

Appendix B: Efficiency Benefit/Cost Calculations – A life 

cycle 1965-2025 analysis period was used to calculate each 

corridor’s benefit/cost ratio. Appendix B presents each

corridor’s costs and benefits, by year, over the life cycle

period.

Appendix C: Economic Development Impacts by Year –

In this study the economic development impacts are

estimated for all 12 study corridors in total, by impact cause. 

Appendix C depicts those development impacts, by year,

over the life cycle analysis period.
Appendix A A-1

APPENDIX A

REVISED ECONOMIC MODEL

To measure the economic impact of the ADHS, a regional economic model specific to the 

Appalachian Region was needed. After deliberation, it was agreed that the most appropriate 

available model was the Regional Economic Models, Inc. (REMI) model, which is a private 

sector model that was configured for the defined Appalachian Region impact area.

Need to Reconfigure REMI Model

The REMI model has been widely used in many highway corridor feasibility and impact studies 

throughout the US, and it was used in three of the five “Best Practices” studies referred to by 

FHWA. However, each of those studies used the “existing REMI model,” e.g., 1995 version, 

which replicates today’s economy, and then forecast what might happen to that economy “if a 

new highway were to be built.”

In the ADHS study, however, much of the highways have already been built (between 1965 and 

1995). Therefore, the REMI model needed to not only forecast the future (1995-2025) but also to 

look back in time (1965-1995). To accomplish this, certain changes were needed.

Traditional Use of REMI Model for Highway Improvements

In general, the REMI model is designed to forecast impacts of future investments and is not 

designed to evaluate economic impacts from the past. As a result, adjustments to the REMI 

model were considered, which would estimate the economic impacts in the past instead of the 

future.

To better understand what adjustments to the REMI model are required for this study, it is useful 

first to describe the usual means in which REMI is used. The REMI model is a structural 

economic model which examines an economy from a perspective of cause and effect. Within 

the REMI model, a relationship between endogenous variables (variables that are determined

within the model) and exogenous variables (variables determined outside the model) is

established. These relationships between these variables are based upon historical

relationships and are represented by parameters. Using historical and estimated values for the 

exogenous variables, REMI is able to develop a base line forecast for the future. To examine the 

impact an exogenous change can have in the model, changes in policy variables are made. 

These changes interact with the endogenous variables within the model and develop an

economic forecast for the future. The difference between this forecast and the base line 

forecast is the economic impact that a change in a policy variable can have on a regional 

economy. Traditionally, a road improvement will affect the level of expenditures in construction, 

roadside services, as well as tourism; it will also affect the cost of doing business for major 

industries within a region. By changing the level of expenditures and cost savings for these 

different industries, an economic forecast can be obtained. However, this study also needed to 

be able to examine past changes to the economy. An adjustment to the REMI model was 

therefore requisite. 
Revised REMI Model

Appendix A A-2

Revision of the REMI Model

The application of the REMI model to past ADHS improvements required a non-traditional 

application of the REMI model. A number of adjustments were examined to the REMI model in 

order to gain estimates for historical economic impact from a road improvement. First, the 

model could not be developed to represent a past non-build environment. Rather, the model had 

to be manipulated to approximate the past. Second, the study time period covers 60 years, while 

the REMI model can only estimate/forecast impacts for a period of 41 years. Therefore, two 

separate model runs were required, one for years 1-31 (1965-1995), the other for years 31-60 

(1996-2024). In addition, a third run was necessary that overlapped the two previous sets of 

runs in order to merge the data. This third run contained the data from 1986 through 2025. 

REMI staff were very helpful in helping to understand how to manipulate the REMI model to 

generate a non-build base case scenario. 

Revising the REMI model relied heavily upon the baseline or control forecast REMI model to 

make economic impact estimates for the historical years. Both the future and historical

estimates of impacts were based upon the baseline control model. While deriving the economic 

impacts for the future years (1996-2024)1 is straight forward, deriving the economic impacts for 

the historical years (1965-1995) is not. To derive the economic impacts for the future years 

(1996-2024), the economic values for increased travel time savings or increased expenditures 

can be put into the REMI model using standard procedures in the normal way without any 

alteration to the inputs or the outputs for REMI. However, in order to gain the economic impact 

for historical years (1965-1995), alterations must occur in either the REMI inputs or outputs. 

In order to pursue a method in which the output of the REMI model was altered, the historical 

levels of output (employment and value added) had to be established for the years 1965-1995. In 

doing so, the level of output can be altered by a weighted factor. The baseline control forecast of 

the REMI model, which predicts future economic impacts (1996-2025), can be used to gain an 

estimate for the economic impact for road improvement made in the past if the output is 

weighted by the historical levels (1965-1995). An example may be helpful in creating a clearer 

explanation.

In order to test this methodology, data were utilized from one of the corridors (Corridor B). The 

initial construction of corridor B began in the mid 1960’s and was first open for traffic in 1968, 

with other sections opening later. With the improved road, an overall gain in travel efficiency was 

realized for both automobiles and trucks. By improving the travel efficiency along the corridor, 

the industries within the region experienced a reduction in the cost of doing business. The travel 

efficiency gains result in cost savings for the industries within the region and the level of impact 

for the Appalachian Region can be estimated through the REMI model. However, REMI has a 

maximum period of analysis of 40 years and this corridor has a time frame of 56 (1968-2024) 

years. Therefore, it was necessary to put the inputs into REMI into two sets. The first set of 

inputs was for the historical years 1968 through 1995. The second set of inputs consisted of the 

future years 1996 through 2024. The second set of inputs could be run through REMI in a 

straight forward fashion. The value of time saved was put into the model as real dollar values for 

the years 1996 through 2024 and these values are displayed in Exhibit A-2 in Columns B

 

1

 1996 through 2024 are defined as the future year forecast period because these are the years that REMI 

can make economic forecasts. 
Revised REMI Model

Appendix A A-3

through E. The resulting output in terms of employment and value added is displayed in 

Columns F and G.

Exhibit A-1 is explained as follows, for the Corridor B example:

• Time Savings and Vehicle Operating Cost (VOC) Savings are both expressed in dollars 

per year, are calculated outside of the REMI model, and are input into the REMI model. 

The values are separately calculated for cars and trucks.

• REMI Output comprises some of the data that is produced by the REMI model, with 

employment (jobs) and Value Added (dollars) shown.

All columns show that both the efficiency gains (time and VOC) and economic development 

gains (employment and value added) are expected to increase over time.

While deriving results for the second set (1996-2024) of inputs was straight forward, the 

derivation of results for the first set (1968-1995) of inputs proved to be more difficult. The first 

set (1968-1995) of cost savings inputs for the competitive advantage impact was placed into the 

base REMI model as inputs for the years 1998 through 2025. The output for employment and 

value added (GRP) is displayed in Column B and C in Exhibit A-2. The values of output for 

these years will be inflated because the analysis used a REMI model that projects economic 

impacts for the future (1996-2025) while using historical inputs. In the course of the last three 

decades, a number of economic and demographic changes have occurred. Therefore, these 

numbers must be deflated to be more representative of the unbuilt case for the years 1968 

through 1995. In order to approximate the inflated level of the numbers, a proxy for deflating the 

values was created and based on the 1968-1995 value added (GRP) and employment levels 

divided by the 1998-2025 value added (GRP) and employment levels.2

For instance, in the impact counties of the Appalachian Region, the employment level in 1968 

was 2,347,526 while the 1998 Regional employment level was 3,717,766. To derive the 1998 

deflation factor for employment, the 1968 level (2,328,422) is divided by the 1998 level

(3,739,573) to gain a factor of .6314. To derive the 1999 deflation factor for employment, the 

level of employment for 1969 is divided by the employment level of 1999. A similar procedure is 

employed to derive employment deflation factors for the years 2000 through 2025 and the 

deflation factor is displayed in Column D. For the value added (GRP) output, a deflation factor is 

based upon the value added for the historical years (1968-1995) divided by the level of value 

added (GRP) for future years (1998-2025) and is shown in Column E. The employment deflation 

factor (Column D) and value added (GRP) deflation factor (Column E) are then multiplied by the 

output for each of the years to adjust the output (Columns B and C) to the historical years 1966-

1995. The new deflated values for employment and value added (GRP) are shown in bold in 

Columns F and G. 

 

2

In the actual use of REMI for the project, all economic indicators were deflated to historical levels.
Revised REMI Model

Appendix A A-4

Exhibit A-1

Example Inputs and Outputs – Corridor B

Time Savings VOC Savings REMI Output

Year Car Truck Car Truck Employment Value Added

millions millions millions millions millions

Column A Column B Column C Column D Column E Column F Column G

1996 $13.95 $19.12 -$0.77 $4.16 604 $26.51

1997 14.40 19.84 -0.78 4.27 782 35.93

1998 14.86 20.56 -0.79 4.37 928 43.99

1999 15.31 21.28 -0.80 4.48 1,047 50.82

2000 15.76 22.00 -0.81 4.58 1,145 56.81

2001 16.22 22.72 -0.82 4.69 1,229 62.17

2002 16.67 23.44 -0.83 4.79 1,304 67.18

2003 17.12 24.16 -0.84 4.90 1,369 71.64

2004 17.58 24.88 -0.85 5.00 1,429 75.92

2005 18.03 25.60 -0.86 5.11 1,484 79.88

2006 18.48 26.32 -0.87 5.21 1,531 83.70

2007 18.94 27.03 -0.88 5.32 1,575 87.59

2008 19.39 27.75 -0.89 5.43 1,616 91.22

2009 19.84 28.47 -0.90 5.53 1,656 94.86

2010 20.30 29.19 -0.91 5.64 1,693 98.29

2011 20.75 29.91 -0.92 5.74 1,728 101.68

2012 21.20 30.63 -0.93 5.85 1,761 105.05

2013 21.66 31.35 -0.94 5.95 1,792 108.31

2014 22.11 32.07 -0.95 6.06 1,846 112.96

2015 22.56 32.79 -0.96 6.16 1,840 113.99

2016 23.02 33.51 -0.96 6.27 1,869 107.67

2017 23.47 34.23 -0.97 6.37 1,898 110.80

2018 23.92 34.94 -0.98 6.48 1,923 113.65

2019 24.38 35.66 -0.99 6.59 1,949 116.62

2020 24.83 36.38 -1.00 6.69 1,971 119.40

2021 25.28 37.10 -1.01 6.80 1,994 122.28

2022 25.74 37.82 -1.02 6.90 2,017 125.30

2023 26.19 38.54 -1.03 7.01 2,043 128.43

2024 26.64 39.26 -1.04 7.11 2,069 131.52
Revised REMI Model

Appendix A A-5

Exhibit A-2

Procedure for Deflation

Column A Column B Column C Column D Column E Column F Column G

REMI REMI Employment Valued Added Deflated Deflated

Years Predicted Predicted Deflation Deflation Employment Value Added

Employment Value Added Factor Factor Level Level

in millions in millions

1966 0 0 0.623 0.449 0 0

1967 0 0 0.632 0.455 0 0

1968 4 0.209 0.631 0.453 3 0.095

1969 7 0.301 0.633 0.453 4 0.137

1970 24 1.182 0.633 0.453 15 0.536

1971 33 1.588 0.634 0.452 21 0.718

1972 66 3.257 0.64 0.466 42 1.518

1973 95 4.811 0.658 0.485 62 2.333

1974 156 7.976 0.686 0.51 107 4.068

1975 199 10.387 0.698 0.495 139 5.142

1976 229 12.184 0.69 0.49 158 5.97

1977 256 14.05 0.712 0.508 182 7.137

1978 282 15.708 0.733 0.518 207 8.137

1979 306 17.458 0.758 0.534 232 9.323

1980 353 20.287 0.772 0.537 273 10.894

1981 390 22.744 0.769 0.519 300 11.804

1982 438 25.967 0.767 0.521 336 13.529

1983 477 28.726 0.755 0.502 360 14.421

1984 511 31.346 0.753 0.51 385 15.987

1985 543 33.815 0.785 0.541 426 18.294

1986 574 36.285 0.805 0.554 462 20.102

1987 602 38.707 0.823 0.57 496 22.063

1988 630 40.979 0.848 0.584 534 23.932

1989 658 43.356 0.874 0.604 575 26.187

1990 682 45.605 0.901 0.626 614 28.549

1991 708 47.993 0.923 0.632 653 30.332

1992 746 51.053 0.928 0.625 692 31.908

1993 775 53.754 0.946 0.645 734 34.672

1994 803 56.432 0.97 0.66 779 37.245

1995 830 59.029 0.99 0.676 822 39.904

Columns B and C is the output based upon 1996-2025 REMI model using 1966-1995 travel efficiency numbers.

Columns D and E are the deflation factors for employment and value added. These deflation factors are estimated 

by taking the base years (1966-1995) levels divided by the future years (1996-2025) levels.
Revised REMI Model

Appendix A A-6

Columns F and G are deflated values for the REMI output that represents the economic development impact 

based upon the 1966-1995 travel efficiency values. The revised values are derived by multiplying Column B and 

Column C by Columns D and E, respectively.

At this point, a value of output for the years 1998 through 2024 had been calculated. However, 

upon examination of the output, it was apparent that initial years of the second set of REMI output 

does not have the accumulated effect of previous economic development. Therefore, this 

accumulated effect had to be accounted for and estimated.

To merge results of the output, the data set from 1986 -2025 was compiled as a data set that 

was placed in as a set of inputs into the REMI model for the years 1996-2035. The reason that 

1986 was the initial year to this data set was to allow 10 years of accumulation before the 1996 

numbers. So the input for 2006 in REMI was actually 1996 and the output for 2006 reflected the 

output for 1996. Therefore, the output for 2006 through 2010 represented the results for 1996 

through 2000 and was used to merge the two sets of output together. Once again, the output 

values had to be deflated to represent the economic conditions of 1986 through 2025. The 

results for these years are shown in bold in Exhibit A-3.

The above modifications were employed to enable REMI to be used in the study. It required that 

the historical output from REMI be discounted to historical levels for the time frame of the 

analysis. The resulting methodology was applied, and the results are summarized in Chapters 5 

and 6.

Exhibit A-3

EXAMPLE RESULTS FROM REMI TESTING

THESE MODIFICATION PROCEDURES

Year Employment Value Added

in millions

1980 273 10.894

1981 300 11.804

1982 336 13.529

1983 360 14.421

1984 385 15.987

1985 426 18.294

1986 462 20.102

1987 496 22.063

1988 534 23.932

1989 575 26.187

1990 614 28.549

1991 653 30.332
Revised REMI Model

Appendix A A-7

1992 692 31.908

1993 734 34.672

1994 779 37.245

1995 822 39.904

1996 893 44.181

1997 975 47.096

1998 1059 50.636

1999 1092 54.462

2000 1145 62.171

2001 1229 67.179

2002 1304 71.642

2003 1369 75.919

2004 1429 79.884

2005 1484 83.698

2006 1531 87.593

2007 1575 91.221

2008 1616 94.861

2009 1656 98.293

2010 1693 101.678

2011 1728 105.051

2012 1761 108.309

2013 1792 112.957

2014 1846 113.989

2015 1840 107.671

2016 1869 110.801

2017 1898 113.653

2018 1923 116.621

2019 1949 119.403

2020 1971 122.278
Appendix B B-1

APPENDIX B

EFFICIENCY BENEFIT/COST CALCULATIONS

The results of the travel efficiency benefit and benefit/cost calculations are presented in Chapter 

4. In support of those findings, Appendix B presents the actual benefit/cost calculations for each 

individual corridor on Exhibits B-1 through B-11. Exhibit B-12 then presents the benefit/cost 

calculations for all twelve corridors combined.

On these exhibits all monetary values are at constant 1995 price levels, not discounted (only the 

“Discounted Total” on the bottom of each column is discounted). The columns on these exhibits 

are interpreted as follows:

Construction Costs – The estimated actual expenditures, by year of authorization at 

1995 price levels. For example, in 1965 the ARC spent much less than $608,000 on 

Corridor A/A1; the $608,000 represents the cost in 1995 prices. No costs are shown 

after 1995 because 1995 is the last year for which “completed” ADHS segments are 

included in the study.

Maintenance Costs – Annual net increase in costs to each state DOT to administer and 

maintain the additional lane miles. Annual increases prior to 1995 reflect phasing in of 

the ADHS highway segments.

Time Savings – The constant dollar values of time times the hours saved due to the 

ADHS. The numbers increase due to increased traffic levels through the years. Time 

savings are the dominant form of efficiency savings attributable to the ADHS.

VOC Savings – Annual savings (or losses) in vehicle operating costs (fuel costs, car 

maintenance costs, etc.). This value is negative (a disbenefit) when the ADHS causes 

travel to be slightly more expensive (it generally costs more, in vehicle operating cost, to 

travel at 65 mph than at 50 mph).

Accidents Savings – Annual monetary cost savings due to accident reduction can be a 

negative value when the trip distance is lengthened due to the ADHS (more vehicle miles 

of travel), or when induced traffic occurs, and when the change in highway functional 

classification is slight.

Net Benefits – The non-discounted benefits less the costs, by year. The only number in 

this column that really matters is the “Discounted Total” at the bottom of the column.
Efficiency Benefit/Cost Calculations

Appendix B B-2

At the bottom right of each exhibit are the three indicators of economic feasibility. A “feasible” 

highway is one which has a positive Net Present Value (NPV), an Internal Rate of Return of 7.0% 

or greater, and a discounted Benefit/Cost Ratio of 1.0 or greater. These indicators of feasibility 

are defined as follows:

• Net Present Value – All costs and benefits in future years are discounted back to the 

base year using a seven percent real (constant dollar) discount rate. The future stream 

of discounted costs is subtracted from the future stream of discounted benefits. When 

the sum of the discounted benefits is greater than the sum of the discounted costs, the 

“net present value” is positive and the highway is deemed to be “economically feasible.” 

The net present value is the best indicator of whether or not a corridor is economically 

feasible.

• Discounted Benefit/Cost Ratio – After the future streams of costs and benefits are 

discounted, the sum of the discounted benefits is divided by the sum of the discounted 

costs. When the result is 1.0 or greater, the corridor is considered to be “economically 

feasible.”

• Internal Rate of Return – This calculation determines that discount rate at which the 

net present value difference between costs and benefits is zero. If the rate of return, 

expressed as a percentage, is equal to or greater than seven percent, then the corridor is 

deemed to be “economically feasible.”

On all of these Exhibit B tables, the calculations are based on the Office of Management and 

Budget discount rate of 7.0% (constant price level discount rate).
Efficiency Benefit/Cost Calculations

Appendix B B-3

Exhibit B-1

TRAVEL EFFICIENCIES BENEFIT COST ANALYSIS

Georgia - corridor A

Undiscounted 1995 $1,000

Construction Maintenance TOTAL Time VOC Accidents TOTAL NET

Year Costs Costs COSTS Savings Savings Savings SAVINCS BENEFITS

1965 608 0 608 0 0 0 0 (608)

1966 2,088 0 2,088 0 0 0 0 (2,088)

1967 611 0 611 0 0 0 0 (611)

1968 294 0 294 0 0 0 0 (294)

1969 279 0 279 0 0 0 0 (279)

1970 1,482 0 1,482 0 0 0 0 (1,482)

1971 12,883 0 12,883 0 0 0 0 (12,883)

1972 28,141 0 28,141 0 0 0 0 (28,141)

1973 9,694 0 9,694 0 0 0 0 (9,694)

1974 9,803 0 9,803 0 0 0 0 (9,803)

1975 11,677 0 11,677 0 0 0 0 (11,677)

1976 3,192 0 3,192 0 0 0 0 (3,192)

1977 2,288 0 2,288 0 0 0 0 (2,288)

1978 4,279 0 4,279 0 0 0 0 (4,279)

1979 8,437 0 8,437 0 0 0 0 (8,437)

1980 2,298 0 2,298 0 0 0 0 (2,298)

1981 1,186 0 1,186 0 0 0 0 (1,186)

1982 1,212 0 1,212 0 0 0 0 (1,212)

1983 3 0 3 0 0 0 0 (3)

1984 0 309 309 8,493 (3,074) (2,509) 2,910 2,601

1985 0 618 618 10,488 (3,482) (2,830) 4,176 3,558

1986 0 927 927 12,483 (3,890) (3,150) 5,442 4,515

1987 2,138 1,236 3,374 14,477 (4,299) (3,470) 6,709 3,334

1988 7,088 1,236 8,324 16,472 (4,707) (3,790) 7,975 (349)

1989 2,118 1,236 3,354 18,467 (5,115) (4,111) 9,241 5,888

1990 1,051 1,236 2,287 20,462 (5,523) (4,431) 10,508 8,221

1991 1,061 1,236 2,297 22,457 (5,931) (4,751) 11,774 9,477

1992 0 1,236 1,236 24,451 (6,339) (5,072) 13,041 11,805

1993 0 1,236 1,236 26,446 (6,747) (5,392) 14,307 13,071

1994 0 1,236 1,236 28,441 (7,156) (5,712) 15,573 14,337

1995 0 1,236 1,236 30,436 (7,564) (6,032) 16,840 15,604

1996 0 1,236 1,236 31,690 (7,698) (6,242) 17,751 16,515

1997 0 1,236 1,236 32,945 (7,832) (6,452) 18,661 17,425

1998 0 1,236 1,236 34,199 (7,966) (6,661) 19,572 18,336

1999 0 1,236 1,236 35,454 (8,100) (6,871) 20,483 19,247

2000 0 1,236 1,236 36,708 (8,234) (7,081) 21,394 20,158

2001 0 1,236 1,236 37,963 (8,368) (7,291) 22,305 21,069

2002 0 1,236 1,236 39,218 (8,502) (7,500) 23,216 21,980

2003 0 1,236 1,236 40,472 (8,636) (7,710) 24,127 22,891

2004 0 1,236 1,236 41,727 (8,770) (7,920) 25,037 23,801

2005 0 1,236 1,236 42,981 (8,904) (8,129) 25,948 24,712

2006 0 1,236 1,236 44,236 (9,038) (8,339) 26,859 25,623

2007 0 1,236 1,236 45,490 (9,171) (8,549) 27,770 26,534

2008 0 1,236 1,236 46,745 (9,305) (8,758) 28,681 27,445

2009 0 1,236 1,236 47,999 (9,439) (8,968) 29,592 28,356

2010 0 1,236 1,236 49,254 (9,573) (9,178) 30,503 29,267

2011 0 1,236 1,236 50,508 (9,707) (9,388) 31,413 30,177

2012 0 1,236 1,236 51,763 (9,841) (9,597) 32,324 31,088

2013 0 1,236 1,236 53,018 (9,975) (9,807) 33,235 31,999

2014 0 1,236 1,236 54,272 (10,109) (10,017) 34,146 32,910

2015 0 1,236 1,236 55,527 (10,243) (10,226) 35,057 33,821
Efficiency Benefit/Cost Calculations

Appendix B B-4

2016 0 1,236 1,236 56,781 (10,377) (10,436) 35,968 34,732

2017 0 1,236 1,236 58,036 (10,511) (10,646) 36,879 35,643

2018 0 1,236 1,236 59,290 (10,645) (10,855) 37,790 36,553

2019 0 1,236 1,236 60,545 (10,779) (11,065) 38,700 37,464

2020 0 1,236 1,236 61,799 (10,913) (11,275) 39,611 38,375

2021 0 1,236 1,236 63,054 (11,047) (11,485) 40,522 39,286

2022 0 1,236 1,236 64,308 (11,181) (11,694) 41,433 40,197

2023 0 1,236 1,236 65,563 (11,315) (11,904) 42,344 41,108

2024 0 1,236 1,236 66,817 (11,449) (12,114) 43,255 42,019

2025 (23,330) 0 (23,330) 0 0 0 0 23,330

Total 90,581 48,824 139,405 1,661,936 (341,456) (317,408) 1,003,072 863,668

Discounted

Total 55,318 4,119 59,437 105,069 (24,497) (21,244) 59,328 (109)

Net Present value ($ 1,000): (109)

IRR(%): 7.0

Benefits/Costs Ratio: 1.00

Note: Discount rate is 7%.
Efficiency Benefit/Cost Calculations

Appendix B B-5

Exhibit B-2

TRAVEL EFFICIENCIES BENEFIT COST ANALYSIS

Corridor B - KY, NC, TN, VA

Undiscounted 1995 $1,000

Construction 

Maintenance TOTAL Time VOC Accidents TOTAL NET

Year Costs Costs COSTS Savings Savings Savings SAVINGS BENEFITS

1965 5,984 0 5,984 0 0 0 0 (5,984)

1966 33,033 0 33,033 0 0 0 0 (33,033)

1967 63,167 0 63,167 0 0 0 0 (63,167)

1968 93,052 (110) 92,942 4,043 686 370 5,099 (87,844)

1969 125,380 (6) 125,373 4,416 693 412 5,521 (119,852)

1970 86,661 47 86,705 10,919 (484) 1,098 11,533 (75,175)

1971 133,986 450 134,436 17,563 605 488 18,656 (115,780)

1972 139,398 771 140,169 22,928 .736 2,020 25,685 (114,484)

1973 141,786 1,212 142,998 26,351 864 2,862 30,078 (112,9201

1974 94,710 1,410 96,120 35,379 1.767 3,384 40,530 (55,590)

1975 75,728 1,591 77,319 42,094 2,005 3,410 47,509 (29,810)

1976 64,509 1,825 66,333 44,991 2,047 3,576 50,614 (15,719)

1977 64,854 2,021 66,874 49,149 1,343 3.712 54,203 (12,671)

1978 68,621 2,187 70,808 52,100 1,354 3,876 57,329 (13,479)

1979 63,946 2,267 66,214 56,664 1,783 4,770 63,216 (2,998)

1980 75,310 2,258 77,569 64,120 826 5.752 70,698 (6,871)

1981 45,543 2,396 47,939 68,334 1,153 6,546 76,032 28,093

1982 70,822 2,561 73,383 75,170 1,041 7.718 83,929 10,546

1983 149,357 2,858 152,215 92,826 5,645 8,320 106,791 (45,425)

1984 59,264 3,130 62,394 103,499 7,086 9,454 120,039 57,645

1985 26,260 3,422 29,681 111.711 7,271 10,702 129,684 100,002

1986 33,775 3,686 37,461 117,178 7,571 11,162 135,912 98,451

1987 34,177 3,831 38,005 129,782 10,855 14,931 155,568 117,560

1988 13,964 3,917 17,881 136,034 11,427 15.714 163,175 145,294

1989 20,890 3,956 24,846 142,286 11,999 16,498 170,783 145,937

1990 10,166 3,995 14,161 148,539 12,571 17,281 178,391 164,230

1991 9,803 3,995 13,798 154,791 13,143 18,064 185,998 172,200

1992 14,077 4,013 18,090 163,052 14,215 19,911 197,178 179,088

1993 3,677 4,031 7,705 169,375 14,793 20.715 204,882 197,174

1994 2,000 4,049 6,049 175,698 15,371 21,518 212,587 206,538

1995 1,351 4,126 5,477 184,198 15,633 22,564 222,394 216,918

1996 0 4,184 4,184 197,036 17,326 23,270 237,632 233,448

1997 0 4,242 4,242 209,874 19,020 23,976 252,869 248,627

1998 0 4,300 4,300 222,712 20,714 24,682 268,107 263,807

1999 0 4,300 4,300 235,550 22,407 25,388 283,344 279,044

2000 0 4,300 4,300 248,387 24,101 26,093 298,582 294,282

2001 0 4,300 4,300 261,225 25,795 26,799 313,820 309,519

2002 0 4,300 4,300 274,063 27,488 27,505 329,057 324.757

2003 0 4,300 4,300 286,901 29,182 28,211 344,295 339,995

2004 0 4,300 4,300 299,739 30,876 28,917 359,532 355,232

2005 0 4,300 4,300 312,577 32,570 29,623 374,770 370,470

2006 0 4,300 4,300 325,415 34,263 30,329 390,007 385,707

2007 0 4,300 4,300 338,253 35,957 31,035 405,245 400,945

2008 0 4,300 4,300 351,091 37,651 31.741 420,482 416,182

2009 0 4,300 4,300 363,929 39,344 32,447 435,720 431,420

2010 0 4,300 4,300 376.767 41,038 33,152 450,957 446,657

2011 0 4,300 4,300 389,605 42,732 33,858 466,195 461,895

2012 0 4,300 4,300 402,443 44,426 34,564 481,433 477,132

2013 0 4,300 4,300 415,281 46,119 35,270 496,670 492,370

2014 0 4,300 4,300 428,119 47,813 35,976 511,908 507,608

2015 0 4,300 4,300 440,957 49,507 36,682 527,145 522,845
Efficiency Benefit/Cost Calculations

Appendix B B-6

2016 0 4,300 4,300 453.795 51,200 37,388 542,383 538,083

2017 0 4,300 4,300 466,633 52,894 38,094 557,620 553,320

2018 0 4,300 4,300 479,470 54,588 38,800 572,858 568,558

2019 0 4,300 4,300 492,309 56,281 39,505 588,095 583,795

2020 0 4,300 4,300 505,146 57,975 40,211 603,333 599,033

2021 0 4,300 4,300 517,984 59,669 40,917 618,570 614,270

2022 0 4,300 4,300 530,822 61,363 41,623 633,805 629,508

2023 0 4,300 4,300 543,660 63,056 42,329 649,046 644.746

2024 0 4,300 4,300 556,498 64,750 43,035 664,283 659,983

2025 (456,568) 0 (456,568) 0 0 0 0 456,568

Total 1,368,683 194,415 1,563,098 13,329,428 1,354,104 1,218,247 15,901,780 14,338,682

Discounte

d

Total 879,597 23,972 903,569 1,049,252 83,937 102,100 1,235,290 331,721

Net Present value ($1000): 331,721

IRR (%): 8.66

Benefits/Costs Ratio: 1.37

Note: Discount rate is 7%.
Efficiency Benefit/Cost Calculations

Appendix B B-7

Exhibit B-3

TRAVEL EFFICIENCIES BENEFIT COST ANALYSIS

Corridor D - OH, WV

Undiscounted 1995 $1,000

Construction 

Maintenance TOTAL Time VOC Accidents TOTAL NET

Year Costs Costs COSTS Savings Savings Savings SAVINGS BENEFITS

1965 2,125 0 2,125 0 0 0 0 (2,125)

1966 17,770 0 17,770 0 0 0 0 (17,770)

1967 44,271 0 44,271 0 0 0 0 (44,271)

1968 74,265 0 74,265 0 0 0 0 (74,265)

1969 165,915 57 165,972 449 (443) 64 69 (165,902)

1970 110,497 204 110,701 2,559 (795) 503 2,268 (108,434)

1971 93,179 565 93,743 10,159 (2,491) 1,478 9,146 (84,598)

1972 77,941 954 78,895 11,704 (2,700) 1,820 10,823 (68,072)

1973 62,094 1,367 63,461 14,323 (2,955) 2,496 13,864 (49,597)

1974 63,199 1,735 64,933 18,277 (3,662) 3,069 17,684 (47,249)

1975 21,072 1,888 22,960 19,714 (3,872) 3,224 19,066 (3,894)

1976 10,335 2,013 12,348 21,151 (4,082) 3,380 20,448 8,100

1977 7,414 2,058 9,472 22,587 (4,292) 3,535 21,830 12,359

1978 10,446 2,083 12,529 27,518 (4,141) 4,036 27,413 14,884

1979 31,484 2,107 33,591 29,598 (4,303) 4,227 29,522 (4,068)

1980 11,553 2,171 13,725 34,034 (5,606) 4,668 33,096 19,371

1981 6,039 2,235 8,274 36,686 (5,868) 4,883 35,701 27,427

1982 6,664 2,275 8,939 39,337 (6,131) 5,098 38,305 29,367

1983 5,276 2,394 7,670 43,964 (7,188) 5,699 42,475 34,805

1984 3,111 2,573 5,684 49,163 (7,537) 6,646 48,271 42,587

1985 5,945 2,751 8,696 52,236 (7,879) 6,928 51,285 42,589

1986 2,221 2,930 5,150 55,310 (8,221) 7,211 54,300 49,149

1987 821 3,028 3,849 58,384 (8,563) 7,493 57,314 53,464

1988 771 3,028 3,799 61,457 (8,905) 7,776 60,328 56,530

1989 1,395 3,028 4,423 64,531 (9,247) 8,058 63,342 58,919

1990 4,894 3,028 7,922 67,605 (9,589) 8,341 66,357 58,435

1991 1,491 3,028 4,519 70,678 (9,931) 8,623 69,371 64,852

1992 763 3,028 3,791 73,752 (10,272) 8,906 72,385 68,595

1993 740 3,028 3,768 76,826 (10,614) 9,188 75,400 71,632

1994 0 3,028 3,028 79,899 (10,956) 9,471 78,414 75,386

1995 0 3,028 3,028 82,973 (11,298) 9,753 81,428 78,400

1996 0 3,028 3,028 85,318 (11,484) 9,945 83,779 80,751

1997 0 3,028 3,028 87,663 (11,6701 10,136 86,129 83,101

1998 0 3,028 3,028 90,008 (11,856) 10,327 88,480 85,452

1999 0 3,028 3,028 92,354 (12,042) 10,518 90,830 87,802

2000 0 3,028 3,028 94,699 (12,228) 10,710 93,181 90,153

2001 0 3,028 3,028 97,044 (12,414) 10,901 95,531 92,503 '

2002 0 3,028 3,028 99,389 (12,600) 11,092 97,882 94,854

2003 0 3,028 3,028 101,734 (12,785) 11,283 100,232 97,204

2004 0 3,028 3,028 104,079 (12,971) 11,475 102,583 99,555

2005 0 3,028 3,028 106,425 (13,157) 11,666 104,933 101,905

2006 0 3,028 3,028 108,770 (13,343) 11,857 107,284 104,256

2007 0 3,028 3,028 111,115 (13,529) 12,048 109,634 106,606

2008 0 3,028 3,028 113,460 (13,715) 12,240 111,985 108,957

2009 0 3,028 3,028 115,805 (13,901) 12,431 114,335 111,307

2010 0 3,028 3,028 118,151 (14,087) 12,622 116,686 113,658

2011 0 3,028 3,028 120,496 (14,273) 12,813 119,036 116,008

2012 0 3,028 3,028 122,841 (14,459) 13,005 121,387 118,359

2013 0 3,028 3,028 125,186 (14,645) 13,196 123,737 120,709

2014 0 3,028 3,028 127,531 (14,831) 13,387 126,088 123,060

2015 0 3,028 3,028 129,876 (15,017) 13,578 128,438 125,410
Efficiency Benefit/Cost Calculations

Appendix B B-8

2016 0 3,028 3,028 132,222 (15,203) 13,770 130,789 127,761

2017 0 3,028 3,028 134,567 (15,389) 13,961 133,139 130,111

2018 0 3,028 3,028 136,912 (15,575) 14,152 135,490 132,462

2019 0 3,028 3,028 139,257 (15,761) 14,343 137,840 134,812

2020 0 3,028 3,028 141,602 (15,946) 14,535 140,191 137,163

2021 0 3,028 3,028 143,948 (16,132) 14,726 142,541 139,513

2022 0 3,028 3,028 146,293 (16,318) 14,917 144,892 141,864

2023 0 3,028 3,028 148,638 (16,504) 15,108 147,242 144,214

2024 0 3,028 3,028 150,983 (16,690) 15,300 149,593 146,565

2025 (93,112) 0 (93,112) 0 0 0 0 93,112

Total 750,578 147,424 898,002 4,551,239 (580,066) 512,618 4,483,791 3,585,789

Discounte

d

Total 517,035 20,711 537,746 430,767 (63,663) 54,341 421,445 (116,301)

Net Present Value ($1000): (116,301)

IRR (%): 5.8

Benefits/Costs Ratio: 0.78

Note: Discount rate is 7%.
Efficiency Benefit/Cost Calculations

Appendix B B-9

Exhibit B-4

TRAVEL EFFICIENCIES BENEFIT COST ANALYSIS

Corridor E. MD, WV

Undiscounted 1995 $1,000

Construction 

Maintenance TOTAL Time VOC Accidents TOTAL NET

Year Costs Costs COSTS Savings Savings Savings SAVINGS BENEFITS

1965 71 0 71 0 0 0 0 (71)

1966 4,365 0 4,365 0 0 0 0 (4,365)

1967 22,420 0 22,420 0 0 0 0 (22,420)

1968 32,284 28 32,312 2,229 420 38 2,687 (29,625)

1969 17,262 56 17,318 2,329 434 39 2,802 (14,516)

1970 44,629 83 44,712 2,429 447 40 2,917 (41,796)

1971 101,950 324 102,275 8,279 (339) (169) 7,771 (94,504)

1972 159,661 538 160,199 8,492 (343) (171) 7,978 (152,221)

1973 129,292 751 130,043 8,705 (346) (174) 8,185 (121,857)

1974 94,863 1,247 96,110 12,934 (19) (200) 12,715 (83,395)

1975 40,287 1,617 41,904 13,279 (1,252) (1,030) 10,997 (30,908)

1976 17,707 2,115 19,823 18,543 (993) (1,003) 16,547 (3,276)

1977 10,737 2,613 13,350 19,720 (1,122) (1,088) 17,511 4,161

1978 2,676 2,829 5,504 20,898 (1,251) (1,172) 18,474 12,970

1979 1,978 3,613 5,591 27,853 (554) (1,515) 25,784 20,193

1980 2,352 4,270 6,622 29,536 (681) (1,613) 27,242 20,620

1981 9,973 4,927 14,900 31,219 (809) (1,711) 28,700 13,800

1982 35,068 5,583 40,652 32,902 (936) (1,809) 30,158 (10,494)

1983 13,979 5,583 19,563 34,586 (1,063) (1,907) 31,616 12,053

1984 11,261 5,583 16,844 36,269 (1,191) (2,004) 33,074 16,229

1985 14,436 5,583 20,020 37,952 (1,318) (2,102) 34,531 14,512

1986 8,026 5,583 13,610 39,635 (1,446) (2,200) 35,989 22,380

1987 13,189 5,583 18,773 41,318 (1,573) (2,298) 37,447 18,675

1988 18,527 5,583 24,110 43,002 (1,701) (2,396) 38,905 14,795

1989 44,893 5,583 50,476 44,685 (1,828) (2,494) 40,363 (10,113)

1990 17,989 5,583 23,573 46,368 (1,955) (2,592) 41,821 18,249

1991 19,212 5,583 24,795 48,051 (2,083) (2,689) 43,279 18,484

1992 10,442 6,195 16,637 69,866 (379) (3,312) 66,175 49,539

1993 1,869 6,812 8,681 73,092 (668) (3,462) 68,962 60,281

1994 1,714 7,439 9,153 75,662 (824) (3,579) 71,259 62,106

1995 0 8,065 8,065 78,232 (979) (3,697) 73,556 65,490

1996 0 8,081 8,081 81,647 (1,307) (3,854) 76,485 68,404

1997 0 8,081 8,081 85,061 (1,636) (4,011) 79,415 71,334

1998 0 8,081 8,081 88,476 (1,964) (4,168) 82,344 74,263

1999 0 8,081 8,081 91,890 (2,292) (4,325) 85,273 77,193

2000 0 8,081 8,081 95,305 (2,620) (4,482) 88,203 80,122

2001 0 8,081 8,081 98,719 (2,948) (4,639) 91,132 83,051

2002 0 8,081 8,081 102,134 (3,276) (4,796) 94,062 85,981

2003 0 8,081 8,081 105,548 (3,604) (4,953) 96,991 88,910

2004 0 8,081 8,081 108,963 (3,932) (5,110) 99,921 91,840

2005 0 8,081 8,081 112,377 (4,260) (5,267) 102,850 94,769

2006 0 8,081 8,081 115,792 (4,588) (5,424) 105,780 97,699

2007 0 8,081 8,081 119,207 (4,916) (5,581) 108,709 100,628

2008 0 8,081 8,081 122,621 (5,244) (5,738) 111,639 103,558

2009 0 8,081 8,081 126,036 (5,572) (5,895) 114,568 106,487

2010 0 8,081 8,081 129,450 (5,900) (6,052) 117,498 109,417

2011 0 8,081 8,081 132,865 (6,228) (6,209) 120,427 112,346

2012 0 8,081 8,081 136,279 (6,556) (6,366) 123,357 115,276

2013 0 8,081 8,081 139,694 (6,884) (6,524) 126,286 118,205

2014 0 8,081 8,081 143,108 (7,212) (6,681) 129,216 121,135

2015 0 8,081 8,081 146,523 (7,540) (6,838) 132,145 124,064
Efficiency Benefit/Cost Calculations

Appendix B B-10

2016 0 8,081 8,081 149,937 (7,868) (6,995) 135,075 126,994

2017 0 8,081 8,081 153,352 (8,196) (7,152) 138,004 129,923

2018 0 8,081 8,081 156,766 (8,524) (7,309) 140,934 132,853

2019 0 8,081 8,081 160,181 (8,852) (7,466) 143,863 135,782

2020 0 8,081 8,081 163,596 (9,180) (7,623) 146,793 138,712

2021 0 8,081 8,081 167,010 (9,508) (7,780) 149,722 141,641

2022 0 8,081 8,081 170,425 (9,836) (7,937) 152,652 144,571

2023 0 8,081 8,081 173,839 (10,164) (8,094) 155,581 147,500

2024 0 8,081 8,081 177,254 (10,492) (8,251) 158,511 150,430

2025 (136,080) 0 (136,080) 0 0 0 0 136,080

Total 767,034 343,704 1,110,73

7

4,662,121 (195,450) (221,790) 4,244,881 3.134,144

Discounte

d

Total 444,194 38,331 482,524 387,641 (12,623) (18,653) 356,366 (126,158)

Net Present value ($1000): (126,158)

IRR (%): 5.4

Benefits/Costs Ratio: 0.74

Note: Discount rate is 7%.
Efficiency Benefit/Cost Calculations

Appendix B B-11

Exhibit B-5

TRAVEL EFFICIENCIES BENEFIT COST ANALYSIS

Corridor F - KY, TN

(1995 $1,000)

Construction 

Maintenance TOTAL Time VOC Accidents TOTAL NET

Year Costs Costs COSTS Savings Savings Savings SAVINGS BENEFITS

1965 3,087 0 3,087 0 0 0 0 (3,087)

1966 12,664 0 12,664 0 0 0 0 (12,664)

1967 12,424 0 12,424 0 0 0 0 (12,424)

1968 15,041 (6) 15,035 263 (36) 57 284 (14,750)

1969 18,117 1 18,118 306 (41) 62 327 (17,790)

1970 16,002 8 16,010 349 (45) 67 370 (15,640)

1971 32,921 1 32,922 497 (102) 120 515 (32,407)

1972 26,678 15 26,693 585 (114) 129 600 (26,092)

1973 31,875 (154) 31,721 4,283 234 1,003 5,520 (26,200)

1974 36,388 (35) 36,354 4,647 223 1,048 5,919 (30,435)

1975 35,769 70 35,840 5,012 212 1,093 6,317 (29,523)

1976 36,148 203 36,351 6,805 5 1,300 8,110 (28,241)

1977 34,465 344 34,809 9,926 (246) 1,643 11,323 (23,486)

1978 16,384 503 16,887 10,848 (451) 1,756 12,153 (4,734)

1979 5,562 688 6,249 11,539 (493) 1,824 12,870 6,621

1980 2,624 821 3,446 12,231 (535) 1,893 13,588 10,143

1981 717 834 1,551 12,922 (578) 1,962 14,306 12,755

1982 644 834 1,478 13,613 (620) 2,030 15,024 13,546

1983 2,299 834 3,134 14,305 (662) 2,099 15,742 12,608

1984 657 834 1,491 14,996 (704) 2,168 16,460 14,969

1985 298 834 1,132 15,688 (747) 2,236 17,177 16,045

1986 301 834 1,135 16,379 (789) 2,305 17,895 16,760

1987 0 834 834 17,070 (831) 2,374 18,613 17,779

1988 0 834 834 17,762 (873) 2,443 19,331 18,497

1989 0 834 834 18,453 (916) 2,511 20,049 19,214

1990 0 834 834 19,144 (958) 2,580 20,767 19,932

1991 1,431 834 2,265 19,836 (1,000) 2,649 21,484 19,219

1992 5,171 834 6,006 20,527 (1,042) 2,717 22,202 16,196

1993 1,515 834 2,349 21,218 (1,084) 2,786 22,920 20,571

1994 695 834 1,529 21,910 (1,127) 2,855 23,638 22,109

1995 684 834 1,519 22,601 (1,169) 2,923 24,356 22,837

1996 0 834 834 23,656 (1,201) 3,007 25,462 24,628

1997 0 834 834 24,712 (1,234) 3,090 26,568 25,734

1998 0 834 834 25,767 (1,266) 3,173 27,674 26,840

1999 0 834 834 26,822 (1,298) 3,256 28,780 27,946

2000 0 834 834 27,877 (1,330) 3,340 29,886 29,052

2001 0 834 834 28,933 (1,363) 3,423 30,993 30,158

2002 0 834 834 29,988 (1,395) 3,506 32,099 31,264

2003 0 834 834 31,043 (1,427) 3,589 33,205 32,371

2004 0 834 834 32,098 (1,460) 3,673 34,311 33,477

2005 0 834 834 33,153 (1,492) 3,756 35,417 34,583

2006 0 834 834 34,209 (1,524) 3,839 36,523 35,689

2007 0 834 834 35,264 (1,556) 3,922 37,630 36,795

2008 0 834 834 36,319 (1,589) 4,005 38,736 37,901

2009 0 834 834 37,374 (1,621) 4,089 39,842 39,007

2010 0 834 834 38,429 (1,653) 4,172 40,948 40,114

2011 0 834 834 39,485 (1,686) 4,255 42,054 41,220

2012 0 834 834 40,540 (1,718) 4,338 43,160 42,326

2013 0 834 834 41,595 (1,750) 4,422 44,266 43,432

2014 0 834 834 42,650 (1,783) 4,505 45,373 44,538

2015 0 834 834 43,706 (1,815) 4,588 46,479 45,644
Efficiency Benefit/Cost Calculations

Appendix B B-12

2016 0 834 834 44,761 (1,847) 4,671 47,585 46,751

2017 0 834 834 45,816 (1,879) 4,754 48,691 47,857

2018 0 834 834 46,871 (1,912) 4,838 49,797 48,963

2019 0 834 834 47,926 (1,944) 4,921 50,903 50,069

2020 0 834 834 48,982 (1,976) 5,004 52,009 51,175

2021 0 834 834 50,037 (2,009) 5,087 53,116 52,281

2022 0 834 834 51,092 (2,041) 5,171 54,222 53,387

2023 0 834 834 52,147 (2,073) 5,254 55,328 54,494

2024 0 834 834 53,203 (2,105) 5,337 56,434 55,600

2025 (67,918) 0

(67,918

)

0 0 0 0 67,918

Total 282,642 39,169 321,811 1,448,171 (62,437) 169,619 1,555,353 1,233,542

Discounte

d

Total 189,274 4,729 194,003 131,034 (5,318) 18,125 143,841 (50,162)

Net Present Value ($1000): (50,162)

IRR (%): 5.5

Benefits/Costs Ratio: 0.74

Note: Discount rate is 7%.
Efficiency Benefit/Cost Calculations

Appendix B B-13

Exhibit B-6

TRAVEL EFFICIENCIES BENEFIT COST ANALYSIS

Kentucky. Corridor I

Undiscounted 1995 $1,000

Construction 

Maintenance TOTAL Time VOC Accidents TOTAL NET

Year Costs Costs COSTS Savings Savings Savings SAVINGS BENEFITS

1965 2,139 0 2,139 0 0 0 0 (2,139)

1966 18,009 0 18,009 0 0 0 0 (18,009)

1967 40,224 0 40,224 0 0 0 0 (40,224)

1968 27,683 (117) 27,565 3,424 187 245 3,857 (23,709)

1969 45,824 (19) 45,804 3,804 205 271 4,280 (41,524)

1970 24,213 32 24,244 5,423 263 465 6,152 (18,092)

1971 12,928 181 13,109 5,921 284 504 6,709 (6,399)

1972 8,380 183 8,563 6,869 234 455 7,558 (1,006)

1973 3,156 262 3,418 7,393 251 488 8,132 4,714

1974 3,939 289 4,228 7,917 268 521 8,706 4,478

1975 1,350 316 1,666 8,441 285 554 9,280 7,614

1976 1,302 316 1,618 8,965 302 587 9,854 8,236

1977 709 316 1,025 9,489 319 620 10,428 9,403

1978 11,766 316 12,083 10,013 336 654 11,002 (1,080)

1979 34,180 316 34,496 10,537 353 687 11,577 (22,920)

1980 9,056 316 9,372 11,061 370 720 12,151 2,779

1981 4,937 316 5,253 11,585 387 753 12,725 7,472

1982 5,969 316 6,285 12,109 404 786 13,299 7,013

1983 304 316 620 12,633 421 819 13,873 13,253

1984 144 316 460 13,157 438 853 14,447 13,987

1985 130 316 447 13,681 455 886 15,021 14,575

1986 0 316 316 14,205 472 919 15,596 15,279

1987 0 316 316 14,729 489 952 16,170 15,853

1988 0 316 316 15,253 506 985 16,744 16,428

1989 0 316 316 15,777 523 1,018 17,318 17,002

1990 0 316 316 16,301 540 1,052 17,892 17,576

1991 0 316 316 16,825 557 1,085 18,466 18,150

1992 0 316 316 17,349 574 1,118 19,040 18,724

1993 0 316 316 17,873 591 1,151 19,614 19,298

1994 0 316 316 18,397 608 1,184 20,189 19,872

1995 0 316 316 18,921 625 1,217 20,763 20,447

1996 0 316 316 19,454 635 1,235 21,325 21,008

1997 0 316 316 19,988 646 1,253 21,886 21,570

1998 0 316 316 20,522 656 1,270 22,448 22,132

1999 0 316 316 21,056 667 1,288 23,010 22,694

2000 0 316 316 21,589 677 1,305 23,572 23,255

2001 0 316 316 22,123 687 1,323 24,133 23,817

2002 0 316 316 22,657 698 1,340 24,695 24,379

2003 0 316 316 23,190 708 1,358 25,257 24,941

2004 0 316 316 23,724 719 1,376 25,819 25,502

2005 0 316 316 24,258 729 1,393 26,380 26,064

2006 0 316 316 24,792 740 1,411 26,942 26,626

2007 0 316 316 25,325 750 1,428 27,504 27,188

2008 0 316 316 25,859 761 1,446 28,066 27,749

2009 0 316 316 26,393 771 1,463 28,627 28,311

2010 0 316 316 26,927 782 1,481 29,189 28,873

2011 0 316 316 27,460 792 1,499 29,751 29,435

2012 0 316 316 27,994 803 1,516 30,313 29,996

2013 0 316 316 28,528 813 1,534 30,874 30,558

2014 0 316 316 29,061 824 1,551 31,436 31,120
Efficiency Benefit/Cost Calculations

Appendix B B-14

2015 0 316 316 29,595 834 1,569 31,998 31,682

2016 0 316 316 30,129 844 1,586 32,560 32,243

2017 0 316 316 30,663 855 1,604 33,121 32,805

2018 0 316 316 31,196 865 1,622 33,683 33,367

2019 0 316 316 31,730 876 1,639 34,245 33,929

2020 0 316 316 32,264 886 1,657 34,807 34,491

2021 0 316 316 32,797 897 1,674 35,369 35,052

2022 0 316 316 33,331 907 1,692 35,930 35,614

2023 0 316 316 33,865 918 1,709 36,492 36,176

2024 0 316 316 34,399 928 1,727 37,054 36,738

2025 (37,409) 0

(37,409

)

0 0 0 0 37,409

Total 218,932 16,621 235,553 1,108,91

3

33,916 64,498 1,207,327 971,773

Discounte

d

Total 161,546 2,645 164,191 130,097 4.440 8,353 142,891 (21,300)

Net Present Value ($1000): 132,292

IRR (%): 8.8

Benefits/Costs Ratio: 1.50

Note: Discount rate is 7%.
Efficiency Benefit/Cost Calculations

Appendix B B-15

Exhibit B-7

TRAVEL EFFICIENCIES BENEFIT COST ANALYSIS

Corridor J - KY, TN

(1995 $1,000)

Construction Maintenance TOTAL Time VOC Accidents TOTAL NET

Year Costs Costs COSTS Savings Savings Savings SAVINGS BENEFITS

1965 758 0 758 0 0 0 0 (758)

1966 4,673 0 4,673 0 0 0 0 (4,673)

1967 8,478 0 8,478 0 0 0 0 (8,478)

1968 7,114 0 7,114 0 0 0 0 (7,114)

1969 11,419 0 11,419 0 0 0 0 (11,419)

1970 16,599 (30) 16,569 174 (14) (46) 114 (16,456)

1971 37,119 (20) 37,100 182 (15) (48) 119 (36,981)

1972 24,212 (10) 24,202 190 (16) (50) 124 (24,078)

1973 46,960 21 46,981 74 (219) (168) (314) (47,295)

1974 57,803 5 57,808 2,424 (376) 141 2,189 (55,619)

1975 31,028 1 31,029 4,366 (415) 143 4,095 (26,934)

1976 30,929 208 31,137 6,215 (429) 239 6,025 (25,112)

1977 29,762 438 30,200 8,270 27 229 8,526 (21,674)

1978 35,152 601 35,753 8,802 58 235 9,094 (26,658)

1979 36,853 789 37,642 16,157 945 51 17,153 (20,488)

1980 25,775 968 26,743 17,500 669 124 18,293 (8,450)

1981 27,519 1,265 28,784 20,652 929 (6) 21,576 (1,208)

1982 19,086 1,562 20,647 21,856 981 (9) 22,828 2,181

1983 14,353 1,760 16,113 23,060 1,032 (12) 24,080 7,966

1984 10,847 1,857 12,704 25,608 1,175 189 26,971 14,267

1985 12,771 1,886 14,657 26,883 1,230 195 28,308 13,650

1986 12,749 1,916 14,665 28,158 1,286 201 29,645 14,980

1987 19,405 1,945 21,350 29,433 1,342 207 30,982 9,632

1988 12,611 2,036 14,647 39,881 2,709 (237) 42,353 27,706

1989 13,793 2,127 15,920 41,362 2,792 (238) 43,915 27,995

1990 11,904 2,271 14,175 48,829 1,482 (821) 49,490 35,315

1991 26,254 2,552 28,806 50,798 911 (1,134) 50,574 21,768

1992 27,668 2,743 30,410 52,678 914 (1,165) 52,428 22,017

1993 8,887 2,933 11,821 54,558 918 (1,195) 54,282 42,461

1994 5,241 2,964 8,205 56,439 922 (1,226) 56,135 47,931

1995 2,693 2,964 5,657 58,319 926 (1,256) 57,989 52,332

1996 0 2,964 2,964 68,803 1,697 (1,649) 68,851 65,887

1997 0 2,964 2,964 79,287 2,468 (2,042) 79,713 76,749

1998 0 2,964 2,964 89,770 3,239 (2,435) 90,574 87,611

1999 0 2,964 2,964 100,254 4,010 (2,828) 101,436 98,472

2000 0 2,964 2,964 110,738 4,780 (3,220) 112,298 109,334

2001 0 2,964 2,964 121,222 5,551 (3,613) 123,160 120,196

2002 0 2,964 2,964 131,705 6,322 (4,006) 134,021 131,058

2003 0 2,964 2,964 142,189 7,093 (4,399) 144,883 141,919

2004 0 2,964 2,964 152,673 7,864 (4,792) 155,745 152,781

2005 0 2,964 2,964 163,156 8,635 (5,184) 166,607 163,643

2006 0 2,964 2,964 173,640 9,405 (5,577) 177,468 174,504

2007 0 2,964 2,964 184,124 10,176 (5,970) 188,330 185,366

2008 0 2,964 2,964 194,608 10,947 (6,363) 199,192 196,228

2009 0 2,964 2,964 205,091 11,718 (6,756) 210,054 207,090

2010 0 2,964 2,964 215,575 12,489 (7,148) 220,915 217,951

2011 0 2,964 2,964 226,059 13,260 (7,541) 231,777 228,813

2012 0 2,964 2,964 236,542 14,030 11,934) 242,639 239,675

2013 0 2,964 2,964 247,026 14,801 (8,327) 253,501 250,537

2014 0 2,964 2,964 257,510 15,572 (8,720) 264,362 261,398

2015 0 2,964 2,964 267,994 16,343 (9,112) 275,224 272,260
Efficiency Benefit/Cost Calculations

Appendix B B-16

2016 0 2,964 2,964 278,477 17,114 (9,505) 286,086 283,122

2017 0 2,964 2,964 288,961 17,885 (9,898) 296,948 293,984

2018 0 2,964 2,964 299,445 18,655 (10,291) 307,809 304,845

2019 0 2,964 2,964 309,928 19,426 (10,684) 318,671 315,707

2020 0 2,964 2,964 320,412 20,197 (11,077) 329,533 326,569

2021 0 2,964 2,964 330,896 20,968 (11,469) 340,395 337,431

2022 0 2,964 2,964 341,380 21,739 (11,862) 351,256 348,292

2023 0 2,964 2,964 351,863 22,510 (12,255) 362,118 359,154

2024 0 2,964 2,964 362,347 23,281 (12,648) 372,980 370,016

2025 (150,216) 0 (150,216) 0 0 0 0 150,216

Total 480,198 121,704 601,902 6,894,540 381,940 (212,964) 7,063,517 6,461,615

Discounted

Total 251,514 11,865 263,380 386,875 17,518 (8,721) 395,672 132,292

Net Present Value ($1000): 132,292

IRR (%): 8.8

Benefits/Costs Ratio: 1.50

Note: Discount rate is 7%.
Efficiency Benefit/Cost Calculations

Appendix B B-17

Exhibit B-8

TRAVEL EFFICIENCIES BENEFIT COST ANALYSIS

West Virginia – Corridor L

Undiscounted 1995 $1,000

Construction Maintenance TOTAL Time VOC

Accident

s TOTAL NET

Year Costs Costs COSTS Savings Savings Savings SAVINGS BENEFITS

1965 0 0 0 0 0 0 0 0 

1966 726 0 726 0 0 0 0 (726)

1967 3,240 0 3,240 0 0 0 0 (3,240)

1968 7,776 0 7,776 0 0 0 0 (7,776)

1969 27,285 0 27,285 0 0 0 0 (27,285)

1970 63,388 0 63,388 0 0 0 0 (63,388)

1971 94,615 24 94,639 2,224 (121) 567 2,669 (91,970)

1972 69,595 76 69,672 4,444 266 1,248 5,958 (63,713)

1973 63,422 129 63,550 4,993 287 1,356 6,636 (56,914)

1974 66,779 269 67,047 6,625 (487) 1,289 7,426 (59,621)

1975 21,448 384 21,833 7,402 (561) 1,381 8,222 (13,610)

1976 11,115 472 11,588 8,179 (635) 1,474 9,018 (2,569)

1977 13,225 579 13,804 9,169 (1,603) 1,080 8,646 (5,157)

1978 10,158 614 10,772 10,960 (1,798) 1,372 10,535 (238)

1979 2,708 649 3,357 12,013 (1,955) 1,458 11,516 8,159 

1980 1,318 698 2,017 13,658 (2,113) 1,652 13,197 11,180 

1981 1,106 729 1,834 14,746 (2,266) 1,745 14,226 12,391 

1982 26 743 769 15,834 (2,418) 1,839 15,254 14,486 

1983 9 756 766 16,922 (2,571) 1,932 16,283 15,517 

1984 3 756 759 18,010 (2,724) 2,025 17,312 16,553 

1985 1 756 758 19,098 (2,876) 2,119 18,341 17,583 

1986 0 756 756 20,186 (3,029) 2,212 19,370 18,613 

1987 0 756 756 21,275 (3,182) 2,305 20,398 19,642 

1988 0 756 756 22,363 (3,334) 2,399 21,427 20,671 

1989 0 756 756 23,451 (3,487) 2,492 22,456 21,699 

1990 0 756 756 24,539 (3,640) 2,585 23,485 22,728 

1991 0 756 756 25,627 (3,792) 2,679 24,513 23,757 

1992 0 756 756 26,715 (3,945) 2,772 25,542 24,786 

1993 0 756 756 27,803 (4,097) 2,865 26,571 25,815 

1994 0 756 756 28,891 (4,250) 2,959 27,600 26,843 

1995 0 824 824 41,980 (4,270) 6,235 43,946 43,122 

1996 0 891 891 45,696 (4,364) 6,599 47,931 47,040 

1997 0 958 958 49,412 (4,458) 6,962 51,916 50,958 

1998 0 1,025 1,025 53,128 (4,552) 7,326 55,901 54,876 

1999 0 1,025 1,025 56,843 (4,646) 7,689 59,887 58,861 

2000 0 1,025 1,025 60,559 (4,740) 8,052 63,872 62,847 

2001 0 1,025 1,025 64,275 (4,834) 8,416 67,857 66,832 

2002 0 1,025 1,025 67,991 (4,928) 8,779 71,842 70,817 

2003 0 1,025 1,025 71,707 (5,022) 9,143 75,828 74,802 

2004 0 1,025 1,025 75,423 (5,116) 9,506 79,813 78,788 

2005 0 1,025 1,025 79,139 (5,210) 9,869 83,798 82,773 

2006 0 1,025 1,025 82,854 (5,304) 10,233 87,784 86,758 

2007 0 1,025 1,025 86,570 (5,398) 10,596 91,769 90,743 

2008 0 1,025 1,025 90,286 (5,492) 10,960 95,754 94,729 

2009 0 1,025 1,025 94,002 (5,586) 11,323 99,739 98,714 

2010 0 1,025 1,025 97,718 (5,680) 11,686 103,725 102,699 

2011 0 1,025 1,025 101,434 (5,774) 12,050 107,710 106,684 

2012 0 1,025 1,025 105,150 (5,868) 12,413 111,695 110,670 
Efficiency Benefit/Cost Calculations

Appendix B B-18

2013 0 1,025 1,025 108,865 (5,962) 12,777 115,680 114,655 

2014 0 1,025 1,025 112,581 (6,056) 13,140 119,666 118,640 

2015 0 1,025 1,025 116,297 (6,150) 13,503 123,651 122,626 

2016 0 1,025 1,025 120,013 (6,244) 13,867 127,636 126,611 

2017 0 1,025 1,025 123,729 (6,337) 14,230 131,621 130,596 

2018 0 1,025 1,025 127,445 (6,431) 14,594 135,607 134,581 

2019 0 1,025 1,025 131,161 (6,525) 14,957 139,592 138,567 

2020 0 1,025 1,025 134,876 (6,619) 15,320 143,577 142,552 

2021 0 1,025 1,025 138,592 (6,713) 15,684 147,562 146,537 

2022 0 1,025 1,025 142,308 (6,807) 16,047 151,548 150,522 

2023 0 1,025 1,025 146,024 (6,901) 16,411 155,533 154,508 

2024 0 1,025 1,025 149,740 (6,995) 16,774 159,518 158,493 

2025 (32,105) 0 

(32,105

) 0 0 0 0 32,105 

Total 425,841 44,799 470,640 3,260,925 (223,309) 390,945 3,428,561 2,957,921 

Discounted

Total 264,599 5,460 270,059 222,867 (20,963) 28,459 230,363 (39,696)

Net Present Value ($1000): (39,696)

IRR (%): 6.3

Benefits/Costs Ratio: 0.85

Note: Discount rate is 7%.
Efficiency Benefit/Cost Calculations

Appendix B B-19

Exhibit B-9

TRAVEL EFFICIENCIES BENEFIT COST ANALYSIS

Pennsylvania - Corridor P

Undiscounted 1995 $1,000

Construction 

Maintenance TOTAL Time VEC Accidents TOTAL NET

Year Costs Costs COSTS Savings Savings Savings SAVINGS BENEFITS

1965 0 0 0 0 0 0 0 0

1966 2,632 0 2,632 0 0 0 0 (2,632)

1967 9,616 0 9,616 0 0 0 0 (9,616)

1968 7,640 0 7,640 0 0 0 0 (7,640)

1969 19,592 33 19,625 13 (1,247) (663) (1,898) (21,523)

1970 33,780 66 33,847 (5) (1,268) (680) (1,953) (35,800)

1971 25,699 233 25,932 4,839 (239) (553) 4,048 (21,885)

1972 39,707 471 40,178 8,887 (459) (1,122) 7,306 (32,872)

1973 77,208 794 78,002 13,578 (1,191) (1,841) 10,547 (67,456)

1974 69,977 1,117 71,094 14,292 (1,166) (1,864) 11,262 (59,832)

1975 72,899 1,295 74,194 15,005 (1,142) (1,886) 11,977 (62,217)

1976 33,022 1,429 34,451 16,950 (1,223) (1,563) 14,164 (20,287)

1977 24,388 1,444 25,832 17,669 (1,199) (1,584) 14,886 (10,945)

1978 9,694 1,459 11,153 18,389 (1,175) (1,605) 15,609 4,455

1979 7,082 1,516 8,598 23,138 (1,137) (405) 21,596 12,998

1980 19,017 1,558 20,575 23,857 (1,113) (427) 22,318 1,743

1981 5,723 1,600 7,323 24,577 (1,089) (448) 23,040 15,717

1982 3,238 1,642 4,880 25,296 (1,065) (469) 23,762 18,882

1983 3,095 1,642 4,737 26,016 (1,041) (4901 24,485 19,747

1984 36 1,642 1,678 26,735 (1,017) (511) 25,207 23,529

1985 33 1,642 1,675 27,454 (993) (532) 25,929 24,254

1986 1,210 1,642 2,853 28,174 (969) (553) 26,651 23,799

1987 4,324 1,642 5,966 28,893 (945) (574) 27,374 21,408

1988 1,224 1,642 2,867 29,613 (921) (595) 28,096 25,229

1989 606 1,642 2,248 30,332 (897) (616) 28,818 26,570

1990 602 1,642 2,244 31,051 (873) (637) 29,541 27,297

1991 0 1,642 1,642 31,771 (849) (658) 30,263 28,621

1992 0 1,642 1,642 32,490 (826) (680) 30,985 29,343

1993 0 1,642 1,642 33,210 (802) (701) 31,707 30,065

1994 0 1,642 1,642 33,929 (778) (722) 32,430 30,788

1995 0 1,642 1,642 34,648 (754) (743) 33,152 31,510

1996 0 1,642 1,642 37,931 (761) (771) 36,398 34,756

1997 0 1,642 1,642 41,213 (769) (799) 39,645 38,003

1998 0 1,642 1,642 44,495 (777) (827) 42,891 41,249

1999 0 1,642 1,642 47,778 (784) (855) 46,138 44,496

2000 0 1,642 1,642 51,060 (792) (883) 49,384 47,742

2001 0 1,642 1,642 54,342 (800) (911) 52,631 50,989

2002 0 1,642 1,642 57,624 (808) (940) 55,877 54,235

2003 0 1,642 1,642 60,907 (815) (968) 59,124 57,482

2004 0 1,642 1,642 64,189 (823) (996) 62,370 60,728

2005 0 1,642 1,642 67,471 (831) (1,024) 65,617 63,975

2006 0 1,642 1,642 70,754 (838) (1,052) 68,863 67,221

2007 0 1,642 1,642 74,036 (846) (1,080) 72,110 70,468

2008 0 1,642 1,642 77,318 (854) (1,108) 75,356 73,714

2009 0 1,642 1,642 80,601 (861) (1,136) 78,603 76,961

2010 0 1,642 1,642 83,883 (869) (1,165) 81,849 80,207

2011 0 1,642 1,642 87,165 (877) (1,193) 85,096 83,454

2012 0 1,642 1,642 90,447 (885) (1,221) 88,342 86,700

2013 0 1,642 1,642 93,730 (892) (1,249) 91,589 89,947

2014 0 1,642 1,642 97,012 (900) (1,277) 94,835 93,193
Efficiency Benefit/Cost Calculations

Appendix B B-20

2015 0 1,642 1,642 100,294 (908) (1,305) 98,082 96,440

2016 0 1,642 1,642 103,577 (915) (1,333) 101,328 99,686

2017 0 1,642 1,642 106,859 (923) (1,361) 104,575 102,932

2018 0 1,642 1,642 110,141 (931) (1,389) 107,821 106,179

2019 0 1,642 1,642 113,424 (938) (1,418) 111,068 109,425

2020 0 1,642 1,642 116,706 (946) (1,446) 114,314 112,672

2021 0 1,642 1,642 119,988 (954) (1,474) 117,560 115,918

2022 0 1,642 1,642 123,271 (962) (1,502) 120,807 119,165

2023 0 1,642 1,642 126,553 (969) (1,530) 124,053 122,411

2024 0 1,642 1,642 129,835 (977) (1,558) 127,300 125,658

2025 (73,473) 0 (73,473) 0 0 0 73,473

Total 398,573 83,626 482,199 3,033,405 (51,586) (56,891) 2,924,929 2,442,730

Discounted

Total 245,423 12,507 257,930 261,422 (10,412) (10,354) 240,656 (17,274)

Net present Value ($1000): (17,274)

IRR (%): 6.6

Benefits/costs Ratio: 0.93

Note: Discount rate is 7%.
Efficiency Benefit/Cost Calculations

Appendix B B-21

Exhibit 8-10

TRAVEL EFFICIENCIES BENEFIT COST ANALYSIS

Corridor Q - VA, WV

Undiscounted 1995 $1,000

Construction Maintenance TOTAL Time VOC Accidents TOTAL NET

Year Costs Costs COSTS Savings Savings Savings SAVINGS BENEFITS

1965 5,138 0 5,138 0 0 0 0 (5,138)

1966 21,578 0 21,578 0 0 0 0 (21,578)

1967 23,586 (30) 23,557 1,029 (434) (271) 324 (23,232)

1968 25,223 (40) 25,182 2,405 (411) 306 2,300 (22,882)

1969 20,106 26 20,132 7,099 (31) 646 7,715 (12,418)

1970 33,820 129 33,949 7,474 (46) 663 8,091 (25,858)

1971 63,749 205 63,954 7,850 (61) 679 8,468 (55,487)

1972 80,618 183 80,801 9,259 (250) 1,169 10,178 (70,623)

1973 87,915 246 88,161 14,839 (599) 1,636 15,876 (72,285)

1974 39,982 342 40,324 15,925 (636) 1,696 16,984 (23,340)

1975 30,090 364 30,454 20,091 (1,323) 2,436 21,204 (9,250)

1976 44,213 490 44,703 21,327 (1,3891 2,528 22,465 (22,238)

1977 36,077 593 36,670 24,989 (1,773) 2,788 26,003 (10,666)

1978 14,021 554 14,575 40,445 (2,826) 4,924 42,543 27,968

1979 11,188 755 11,943 42,522 (2,956) 5,098 44,664 32,721

1980 10,645 956 11,601 44,599 (3,087) 5,273 46,785 35,184

1981 3,067 1,118 4,185 46,676 (3,218) 5,447 48,906 44,721

1982 1,671 1,118 2,789 48,753 (3,349) 5,622 51,027 48,237

1983 1,857 1,118 2,975 50,831 (3,480) 5,796 53,147 50,172

1984 3,173 1,118 4,291 52,908 (3,610) 5,971 55,268 50,977

1985 3,929 1,118 5,048 54,985 (3,741) 6,145 57,389 52,341

1986 1,410 1,039 2,450 65,154 (4,252) 8,005 68,907 66,457

1987 1,418 1,105 2,523 67,231 (4,383) 8,179 71,028 68,505

1988 2,410 1,171 3,580 69,308 (4,513) 8,354 73,149 69,569

1989 2,333 1,236 3,569 71,386 (4,644) 8,528 75,269 71,701

1990 6,406 1,236 7,642 73,463 (4,775) 8,703 77,390 69,749

1991 2,152 1,236 3,388 75,540 (4,906) 8,877 79,511 76,123

1992 954 1,236 2,190 77,617 (5,036) 9,052 81,632 79,442

1993 926 1,236 2,162 79,694 (5,167) 9,226 83,753 81,591

1994 0 1,236 1,236 81,771 (5,298) 9,401 85,873 84,637

1995 0 1,236 1,236 83,848 (5,429) 9,575 87,994 86,758

1996 0 1,236 1,236 87,972 (5,676) 9,903 92,198 90,962

1997 0 1,236 1,236 92,096 (5,923) 10,230 96,403 95,167

1998 0 1,236 1,236 96,220 (6,171) 10,558 100,607 99,371

1999 0 1,236 1,236 100,344 (6,418) 10,886 104,812 103,576

2000 0 1,236 1,236 104,468 (6,665) 11,213 109,016 107,780

2001 0 1,236 1,236 108,592 (6,912) 11,541 113,220 111,984

2002 0 1,236 1,236 112,716 (7,160) 11,869 117,425 116,189

2003 0 1,236 1,236 116,840 (7,407) 12,196 121,629 120,393

2004 0 1,236 1,236 120,964 (7,654) 12,524 125,834 124,598

2005 0 1,236 1,236 125,088 (7,902) 12,852 130,038 128,802

2006 0 1,236 1,236 129,212 (8,149) 13,179 134,243 133,006

2007 0 1,236 1,236 133,336 (8,396) 13,507 138,447 137,211

2008 0 1,236 1,236 137,460 (8,643) 13,835 142,651 141,415

2009 0 1,236 1,236 141,584 (8,891) 14,162 146,856 145,620

2010 0 1,236 1,236 145,708 (9,138) 14,490 151,060 149,824

2011 0 1,236 1,236 149,832 (9,385) 14,818 155,265 154,028

2012 0 1,236 1,236 153,956 (9,632) 15,145 159,469 158,233

2013 0 1,236 1,236 158,080 (9,880) 15,473 163,673 162,437

2014 0 1,236 1,236 162,204 (10,127) 15,801 167,878 166,642

2015 0 1,236 1,236 166,328 (10,374) 16,128 172,082 170,846
Efficiency Benefit/Cost Calculations

Appendix B B-22

2016 0 1,236 1,236 170,452 (10,622) 16,456 176,287 175,051

2017 0 1,236 1,236 174,576 (10,869) 16,784 180,491 179,255

2018 0 1,236 1,236 178,700 (11,116) 17,111 184,695 183,459

2019 0 1,236 1,236 182,824 (11,363) 17,439 188,900 187,664

2020 0 1,236 1,236 186,948 (11,611) 17,767 193,104 191,868

2021 0 1,236 1,236 191,072 (11,858) 18,094 197,309 196,073

2022 0 1,236 1,236 195,196 (12,105) 18,422 201,513 200,277

2023 0 1,236 1,236 199,320 (12,353) 18,750 205,718 204,481

2024 0 1,236 1,236 203,444 (12,600) 19,077 209,922 208,686

2025 (128,686) 0 (128,686) 0 0 0 0 128,686

Total 450,970 58,179 509,149 5,484,552 (346,622) 566,660 5,704,590 5,195,441

Discounted

Total 320,695 7,468 328,163 501,308 (31,755) 55,153 524,706 196,543

Net Present Value ($1000): 196,543

IRR (%): 9.8

Benefits/Costs Ratio: 1.60

Note: Discount rate is 7%.
Efficiency Benefit/Cost Calculations

Appendix B B-23

Exhibit 8-11

TRAVEL EFFICIENCIES BENEFIT COST ANALYSIS

Corridor T - NY, PA

Undiscounted 1995 $1,000

Construction Maintenance TOTAL Time VOC Accidents TOTAL NET

Year Costs Costs COSTS Savings Savings Savings SAVINGS BENEFITS

1965 0 0 0 0 0 0 0 0

1966 0 0 0 0 0 0 0 0

1967 7,685 0 7,685 0 0 0 0 (7,685)

1968 44,957 0 44,957 0 0 0 0 (44,957)

1969 88,510 0 88,510 0 0 0 0 (88,510)

1970 120,097 29 120,126 754 90 (551) 294 (119,832)

1971 166,109 58 166,167 754 90 (551) 294 (165,873)

1972 121,071 86 121,157 755 90 (551) 294 (120,863)

1973 194,892 115 195,007 755 90 (551) 294 (194,713)

1974 121,338 485 121,823 43,113 (2,562) 719 41,270 (80,553)

1975 50,879 1,068 51,947 71,727 (4,794) 1,526 68,459 16,512

1976 35,605 1,867 37,471 84,886 (71) 3,510 88,325 50,854

1977 15,859 2,665 18,525 85,671 (129) 3,530 89,072 70,547

1978 15,505 3,094 18,600 86,456 (188) 3,550 89,818 71,218

1979 28,979 3,346 32,326 91,018 807 4,341 96,166 63,841

1980 20,967 3,466 24,434 104,179 1,445 5,047 110,671 86,237

1981 31,479 3,679 35,159 109,039 2,711 5,055 116,805 81,646

1982 30,458 3,892 34,351 109,893 2,661 5,077 117,632 83,281

1983 27,055 4,149 31,205 116,094 1,376 5,709 123,179 91,975

1984 22,769 4,323 27,091 116,913 1,331 5,729 123,974 96,882

1985 23,552 4,403 27,955 117,732 1,286 5,750 124,768 96,813

1986 17,381 4,536 21,917 122,530 1,993 6,642 131,165 109,248

1987 24,039 4,589 28,629 123,134 1,918 6,623 131,675 103,047

1988 17,453 4,643 22,096 123,739 1,843 6,604 132,186 110,090

1989 8,356 4,845 13,202 128,439 3,006 6,372 137,818 124,616

1990 12,343 4,995 17,338 129,044 2,931 6,354 138,328 120,990

1991 4,456 5,145 9,601 129,648 2,856 6,335 138,839 129,238

1992 2,563 5,295 7,858 130,253 2,781 6,316 139,349 131,491

1993 1,664 5,295 6,959 130,857 2,706 6,297 139,860 132,901

1994 163 5,339 5,502 148,459 3,153 6,922 158,534 153,031

1995 161 5,384 5,544 149,656 3,101 6,909 159,666 154,121

1996 0 5,428 5,428 164,487 4,507 7,138 176,132 170,704

1997 0 5,472 5,472 179,319 5,914 7,366 192,599 187,127

1998 0 5,472 5,472 194,150 7,321 7,595 209,066 203,594

1999 0 5,472 5,472 208,982 8,727 7,824 225,533 220,060

2000 0 5,472 5,472 223,813 10,134 8,052 242,000 236,527

2001 0 5,472 5,472 238,645 11,540 8,281 258,466 252,994

2002 0 5,472 5,472 253,476 12,947 8,510 274,933 269,460

2003 0 5,472 5,472 268,308 14,353 8,738 291,400 285,927

2004 0 5,472 5,472 283,139 15,760 8,967 307,866 302,394

2005 0 5,472 5,472 297,971 17,167 9,196 324,333 318,861

2006 0 5,472 5,472 312,802 18,573 9,424 340,800 335,327

2007 0 5,472 5,472 327,634 19,980 9,653 357,267 351,794

2008 0 5,472 5,472 342,465 21,386 9,882 373,733 368,261

2009 0 5,472 5,472 357,297 22,793 10,110 390,200 384,728

2010 0 5,472 5,472 372,128 24,199 10,339 406,667 401,194

2011 0 5,472 5,472 386,960 25,606 10,568 423,134 417,661

2012 0 5,472 5,472 401,791 27,013 10,796 439,600 434,128

2013 0 5,472 5,472 416,623 28,419 11,025 456,067 450,595

2014 0 5,472 5,472 431,454 29,826 11,254 472,534 467,061

2015 0 5,472 5,472 446,286 31,232 11,482 489,001 483,528
Efficiency Benefit/Cost Calculations

Appendix B B-24

2016 0 5,472 5,472 461,117 32,639 11,711 505,467 499,995

2017 0 5,472 5,472 475,949 34,046 11,940 521,934 516,462

2018 0 5,472 5,472 490,780 35,452 12,168 538,401 532,928

2019 0 5,472 5,472 505,612 36,859 12,397 554,868 549,395

2020 0 5,472 5,472 520,443 38,265 12,626 571,334 565,862

2021 ' 0 5,472 5,472 535,275 39,672 12,854 587,801 582,329

2022 0 5,472 5,472 550,106 41,078 13,083 604,268 598,795

2023 0 5,472 5,472 564,938 42,485 13,312 620,734 615,262

2024 0 5,472 5,472 579,769 43,892 13,540 637,201 631,729

2025 (118,900) 0 (118,900) 0 0 0 0 118,900

Total 1,137,449 245,448 1,382,898 13,247,222 732,306 412,545 14,392,073 13,009,17

6

Discounted

Total 649,074 28,723 677,797 1,072,564 31,299 40,120 1,143,984 466,187

Net Present Value ($1000): 466,187

IRR (%): 10.1

Benefits/Costs Ratio: 1.69

Note: Discount rate is 7%.
Efficiency Benefit/Cost Calculations

Appendix B B-25

Exhibit 8-12

TRAVEL EFFICIENCIES BENEFIT COST ANALYSIS

All Corridors

Undiscounted 1995 $1,000

Construction 

Maintenance TOTAL Time VOC Accidents TOTAL NET

Year Costs Costs COSTS Savings Savings Savings SAVINCS BENEFITS

1965 19,909 0 19,909 0 0 0 0 (19,909)

1966 117,538 0 117,538 0 0 0 0 (117,538)

1967 235,723 (30) 235,693 1,029 (434) (271) 324 (235,369)

1968 335,329 (246) 335,083 12,364 845 1,017 14,227 (320,856)

1969 539,690 146 539,836 18,415 (4301 831 18,817 (521,020)

1970 551,169 569 551,738 30,077 (1,851) 1,560 29,786 (521,952)

1971 775,138 2,022 777,160 58,268 (2,389) 2,516 58,395 (718,765)

1972 775,403 3,267 778,670 74,114 (2,555) 4,946 76,505 (702,165)

1973 848,293 4,742 853,036 95,295 (3,585) 7,108 98,818 (754,218)

1974 658,782 6,863 665,645 161,532 (6,650) 9,804 164,686 (500,959)

1975 392,228 8,596 400,823 207,129 (10,855) 10,853 207,127 (193,696)

1976 288,078 10,938 299,016 238,010 (6,467) 14,028 245,572 (53,445)

1977 239,777 13,071 252,848 256,640 (8,676) 14,465 262,429 9,581

1978 198,702 14,240 212,942 286,429 (10,083) 17,624 293,970 81,028

1979 232,396 16,047 248,443 321,040 (7,511) 20,535 334,064 85,621

1980 180,917 17,483 198,400 354,774 (9,826) 23,089 368,037 169,637

1981 137,289 19,100 156,388 376,435 (8,647) 24,227 392,015 235,627

1982 174,859 20,527 195,386 394,764 (9,432) 25,885 411,217 215,831

1983 217,589 21,413 239,002 431,235 (7,531) 27,966 451,670 212,668

1984 111,262 22,443 133,705 465,750 (9,828) 28,010 483,932 350,227

1985 87,356 23,331 110,687 487,907 (10,795) 29,497 506,609 395,923

1986 77,073 24,166 101,239 519,392 (11,274) 32,753 540,871 439,632

1987 99,512 24,867 124,379 545,727 (9,172) 36,722 573,278 448,899

1988 74,047 25,163 99,210 574,883 (8,4701 37,256 603,669 504,460

1989 94,385 25,561 119,945 599,168 (7,814) 38,020 629,373 509,428

1990 65,355 25,893 91,248 625,344 (9,789) 38,414 653,969 562,721

1991 65,859 26,324 92,184 646,020 (11,025) 39,078 674,073 581,889

1992 61,638 27,294 88,932 688,749 (9,356) 40,564 719,958 631,026

1993 19,279 28,120 47,399 710,951 (10,172) 41,479 742,258 694,859

1994 9,813 28,840 38,653 749,495 (10,334) 43,070 782,231 743,578

1995 4,889 29,655 34,544 785,812 (11,178) 47,449 822,083 787,539

1996 0 29,840 29,840 843,690 (8,325) 48,579 883,944 854,103

1997 0 30,010 30,010 901,569 (5,473) 49,709 945,805 915,795

1998 0 30,136 30,136 959,447 (2,621) 50,839 1,007,666 977,530

1999 0 30,136 30,136 1,017,326 232 51,969 1,069,527 1,039,391

2000 0 30,136 30,136 1,075,204 3,084 53,099 1,131,388 1,101,252

2001 0 30,136 30,136 1,133,083 5,936 54,229 1,193,248 1,163,113

2002 0 30,136 30,136 1,190,961 8,789 55,359 1,255,109 1,224,974

2003 0 30,136 30,136 1,248,840 11,641 56,489 1,316,970 1,286,835

2004 0 30,136 30,136 1,306,719 14,493 57,619 1,378,831 1,348,696

2005 0 30,136 30,136 1,364,597 17,346 58,749 1,440,692 1,410,557

2006 0 30,136 30,136 1,422,475 20,198 59,879 1,502,553 1,472,418

2007 0 30,136 30,136 1,480,354 23,051 61,009 1,564,414 1,534,279

2008 0 30,136 30,136 1,538,233 25,903 62,139 1,626,275 1,596,140

2009 0 30,136 30,136 1,596,111 28,755 63,269 1,688,136 1,658,001

2010 0 30,136 30,136 1,653,990 31,608 64,400 1,749,997 1,719,861

2011 0 30,136 30,136 1,711,868 34,460 65,530 1,811,858 1,781,722

2012 0 30,136 30,136 1,769,747 37,312 66,660 1,873,719 1,843,583

2013 0 30,136 30,136 1,827,625 40,165 67,790 1,935,580 1,905,444

2014 0 30,136 30,136 1,885,504 43,017 68,920 1,997,441 1,967,305
Efficiency Benefit/Cost Calculations

Appendix B B-26

2015 0 30,136 30,136 1,943,382 45,869 70,050 2,059,302 2,029,166

2016 0 30,136 30,136 2,001,261 48,722 71,180 2,121,163 2,091,027

2017 0 30,136 30,136 2,059,140 51,574 72,310 2,183,024 2,152,888

2018 0 30,136 30,136 2,117,018 54,427 73,440 2,244,884 2,214,749

2019 0 30,136 30,136 2,174,897 57,279 74,570 2,306,745 2,276,610

2020 0 30,136 30,136 2,232,775 60,131 75,700 2,368,606 2,338,471

2021 0 30,136 30,136 2,290,654 62,984 76,830 2,430,467 2,400,332

2022 0 30,136 30,136 2,348,532 65,836 77,960 2,492,328 2,462,193

2023 0 30,136 30,136 2,406,411 68,688 79,090 2,554,189 2,524,054

2024 0 30,136 30,136 2,464,289 71,541 80,220 2,616,050 2,585,914

2025 (1,317,797) 0 (1,317,797) 0 0 0 0 1,317,797

Total 6,371,480 1,343,913 7,715,393 58,682,453 701,340 2,526,080 61,909,873 54,194,480

Discounte

d

Total 3,978,268 160,530 4,138,798 4,678,898 (32,037) 247,680 4,894,541 755,743

Net Present value ($1000): 755,743

IRR (%): 7.9

Benefits/Costs Ratio: 1.18

Note: Discount rate is 7%.
ADHS Economic Evaluation C-1

APPENDIX C

ECONOMIC DEVELOPMENT IMPACTS BY YEAR

One of the advantages afforded by the REMI model is its ability to track economic development 

impacts over time in a dynamic way. Reasons why the impacts increase over time are because 

traffic increases, and because population increases, and because the number of ADHS

completed highway sections continue to increase; another important reason is that the impacts 

tend to build on themselves. For example, the study shows that the Appalachian Region number 

of people and employees increased in part due to the ADHS.

Contained in Appendix C are tables which show how the various economic development

impacts are estimated to change over time. As shown, all impact types (employment,

population, wages and value added) increase through the entire 1965-2024 analysis period. This 

is because of the dynamic nature of the economic development process, and because of the 

dynamic nature of the REMI model.

Exhibits C-1 through C-4 show the impacts by cause (competitive advantage, roadside 

services, tourism, and construction), and Exhibit C-5 presents the total economic development 

impacts for all eleven studied ADHS corridors.

Each exhibit follows a consistent format in which the first column (Column A) is the year, second 

column (Column B) displays the number of new permanent jobs created, the third column 

(Column C) is the additional population created, the fourth column (Column D) is the total 

increase in wages, and the fifth and final column (Column E) is the valued added created. 

For each of the economic indicators and for each year, the additional jobs, the additional

population, the increase in wages, and the increase in value added is determined by the

difference between the values of the economic indicators for the control forecast and the values 

for the economic indicators for the new forecast. The control forecast represents the economic 

values if none of the ADHS highways were ever built. The values for any year, e.g., 2015, 

represent the additional jobs, the increase in population, the increase in the value of wages paid 

out, and the additional value added relative to the control forecast. The values displayed for 

wages and value added are in millions of dollars. 

Exhibit C-1

Competitive Advantage Impacts

A B C D E

year employment population wages value added

millions

1966 0 0 0.00 0.00

1967 3 2 0.02 0.10

1968 75 43 0.38 2.18

1969 119 110 0.59 3.43

1970 198 202 1.09 5.74

1971 392 399 2.42 11.69

1972 556 660 3.63 17.16

1973 776 977 5.51 24.48
Economic Development Impacts by Year

Appendix C C-2

1974 1330 1534 10.34 40.24

1975 1792 2317 15.56 54.84

1976 2269 3202 21.42 71.09

1977 2655 4102 27.61 83.79

1978 3111 5012 35.53 99.30

1979 3618 6026 44.30 115.24

1980 4029 7087 54.03 126.11

1981 4380 8134 61.21 139.69

1982 4615 9134 67.17 145.87

1983 5008 10175 81.92 162.67

1984 5628 11224 95.14 188.36

1985 6087 12238 106.49 205.32

1986 6586 13229 121.75 225.78

1987 7162 14245 139.80 246.79

1988 7780 15240 157.62 271.25

1989 8401 16239 177.46 297.69

1990 8970 17250 193.79 316.48

1991 9334 18302 217.89 327.18

1992 10046 19434 245.01 359.16

1993 10692 20578 271.55 385.61

1994 11438 21710 307.28 417.98

1995 12195 22747 324.80 444.83

1996 14755 24833 341.60 502.79

1997 15835 26995 360.12 549.74

1998 16870 29111 380.33 605.81

1999 17931 31346 402.12 667.59

2000 18957 33795 425.53 713.12

2001 19989 36330 450.48 744.52

2002 21006 38906 477.03 810.21

2003 21958 41486 505.21 873.94

2004 22882 44100 534.99 944.24

2005 24067 46140 544.13 1059.20

2006 25319 47839 582.35 1129.92

2007 26625 49423 622.86 1202.03

2008 27874 52887 663.64 1272.24

2009 29096 56234 706.38 1342.31

2010 30274 59464 749.96 1411.40

2011 31441 62577 795.63 1480.74

2012 32579 65571 843.28 1549.81

2013 33674 68448 892.44 1617.19

2014 34769 71222 946.67 1686.02

2015 35796 73904 1001.05 1752.25

2016 36780 76487 1056.68 1817.36

2017 37800 78999 1117.34 1885.71
Economic Development Impacts by Year

Appendix C C-3

2018 38753 81428 1178.38 1951.27

2019 39693 83795 1242.82 2017.21

2020 40597 86099 1309.07 2082.25

2021 41517 88363 1379.52 2148.83

2022 42496 90636 1455.99 2220.06

2023 43483 92906 1537.63 2292.76

2024 44475 95169 1625.14 2366.39

Exhibit C-2

Roadside Services Impact

A B C D E

year employment population wages value added

millions

1966 0 0 0 0

1967 2 1 0.01 0.05

1968 24 5 0.12 0.61

1969 34 14 0.17 0.86

1970 65 30 0.36 1.64

1971 113 59 0.68 2.80

1972 145 96 0.99 3.65

1973 191 142 1.45 4.86

1974 269 201 2.26 7.07

1975 316 274 2.97 8.19

1976 364 354 3.90 9.13

1977 405 440 4.65 10.34

1978 457 524 5.55 11.54

1979 514 613 6.84 13.29

1980 562 707 8.29 14.79

1981 584 799 9.18 14.97

1982 594 883 10.09 15.65

1983 639 968 11.12 16.45

1984 719 1058 12.17 18.22

1985 765 1144 13.83 21.55

1986 823 1228 15.32 24.88

1987 875 1310 16.46 28.21

1988 938 1388 18.24 31.55

1989 1000 1467 20.19 34.88

1990 1067 1545 22.14 38.21

1991 1103 1623 24.00 41.54

1992 1183 1712 26.09 44.88

1993 1242 1801 28.36 48.21

1994 1311 1892 30.63 51.54

1995 1390 1980 33.22 54.87
Economic Development Impacts by Year

Appendix C C-4

1996 1485 2079 34.62 58.20

1997 1578 2189 38.60 60.27

1998 1668 2298 40.86 61.79

1999 1757 2403 42.29 63.32

2000 1843 2516 43.36 64.91

2001 1928 2644 44.42 66.77

2002 2011 2776 45.61 68.98

2003 2093 2908 46.99 71.89

2004 2174 3037 48.71 75.69

2005 2253 3170 50.64 79.90

2006 2346 3351 52.65 85.19

2007 2412 3548 54.92 88.59

2008 2480 3729 57.39 92.14

2009 2552 3903 60.24 95.84

2010 2622 4070 63.24 99.56

2011 2693 4229 66.49 103.29

2012 2761 4381 69.82 107.00

2013 2831 4525 73.50 110.79

2014 2898 4662 77.38 114.60

2015 2964 4794 81.50 118.41

2016 3031 1352 78.90 110.43

2017 3096 1447 83.08 113.93

2018 3161 1535 87.56 117.46

2019 3224 1624 92.19 121.03

2020 3286 1712 97.03 124.49

2021 3348 1795 102.08 127.91

2022 3407 1880 107.45 131.45

2023 3465 1962 112.92 134.91

2024 3523 2046 118.58 138.34

Exhibit C-3

Tourism Impact

A B C D E

year employment population wages value added

millions

1966 0 0 0 0

1967 3 1 0.01 0.05

1968 13 3 0.06 0.22

1969 34 11 0.16 0.79

1970 66 29 0.34 1.48

1971 115 59 0.63 2.55

1972 147 97 0.88 3.3

1973 191 145 1.24 4.38

1974 267 205 1.91 6.37
Economic Development Impacts by Year

Appendix C C-5

1975 312 281 2.43 7.35

1976 359 363 3.07 8.2

1977 399 451 3.7 9.29

1978 447 535 4.54 10.39

1979 502 627 5.63 11.95

1980 547 720 6.66 13.29

1981 567 812 7.53 13.46

1982 574 896 8.02 14.1

1983 616 982 8.86 14.85

1984 691 1070 10.65 16.42

1985 733 1154 11.81 18.24

1986 786 1232 13.15 21.71

1987 832 1313 14.65 25.17

1988 890 1386 16.56 28.63

1989 945 1460 18.27 32.09

1990 1005 1533 20.42 35.55

1991 1035 1608 21.88 39.01

1992 1106 1689 24.97 42.47

1993 1157 1773 27.07 45.93

1994 1218 1854 30 49.39

1995 1287 1933 33.44 52.85

1996 1386 2069 36.67 56.31

1997 1480 2204 38.61 58.38

1998 1571 2340 40.76 59.86

1999 1659 2475 42.05 61.27

2000 1745 2611 42.83 62.82

2001 1828 2747 43.62 64.55

2002 1909 2882 44.48 66.67

2003 1988 3018 45.57 69.1

2004 2064 3107 46.93 71.79

2005 2330 3289 48.48 74.39

2006 2388 3495 50.13 77.35

2007 2451 3690 52.03 80.56

2008 2514 3870 54.21 83.82

2009 2576 4040 56.67 87.25

2010 2638 4200 59.34 90.74

2011 2697 4352 62.16 94.19

2012 2756 4493 65.07 97.65

2013 2813 4628 68.3 101.08

2014 2869 4756 71.63 104.56

2015 2924 4876 75.25 108.11

2016 2977 1357 79.01 111.62

2017 3030 1450 82.97 115.16

2018 3081 1533 87.11 118.61
Economic Development Impacts by Year

Appendix C C-6

2019 3129 1617 91.45 122.07

2020 3177 1698 95.93 125.52

2021 3222 1778 100.69 128.96

2022 3265 1854 105.61 132.37

2023 3309 1931 110.59 135.73

2024 3334 2005 115.85 139.14

Exhibit C-4

Construction Impacts

A B C D E

year employment population wages value added

millions

1965 200 49 1.19 6.69

1966 1266 371 7.79 41.52

1967 2532 1065 16.42 82.20

1968 3473 2007 21.75 112.43

1969 6046 3492 41.17 189.97

1970 5856 5025 44.55 183.56

1971 8217 6947 67.94 263.63

1972 8358 8899 76.84 271.04

1973 9249 10675 92.60 302.38

1974 7093 11802 76.84 219.06

1975 3679 11819 47.11 109.90

1976 2549 11329 34.02 73.92

1977 2141 10736 27.94 59.89

1978 2016 10107 25.08 55.96

1979 2774 9707 37.01 80.38

1980 2157 9242 28.82 59.50

1981 1728 8619 21.07 47.15

1982 2412 8176 35.78 68.72

1983 3105 8000 57.43 93.32

1984 1860 7552 30.19 54.44

1985 1724 6950 27.09 50.43

1986 1708 6402 27.92 50.95

1987 2219 5996 44.45 68.55

1988 1972 5604 39.77 60.94

1989 2400 5287 56.08 76.61

1990 1973 4967 45.21 61.58

1991 2108 4693 55.23 65.83

1992 2139 4492 60.76 68.24

1993 1524 4207 41.24 47.40

1994 1462 3909 41.86 46.01

1995 1392 3760 34.62 58.20

1996 602 3490 14.27 26.18
Economic Development Impacts by Year

Appendix C C-7

1997 600 3221 15.70 25.96

1998 578 2951 16.10 25.18

1999 557 2682 16.06 24.25

2000 538 2413 15.93 23.38

2001 524 2143 15.78 22.71

2002 513 1874 15.65 22.26

2003 477 1604 12.91 20.06

2004 510 1335 15.70 22.17

2005 504 1065 16.07 21.89

2006 501 796 16.24 21.80

2007 498 823 16.40 21.77

2008 497 840 16.62 21.77

2009 497 859 16.93 21.80

2010 498 872 17.30 22.01

2011 501 885 17.74 22.14

2012 501 894 18.19 22.27

2013 505 902 18.76 22.54

2014 506 904 19.28 22.71

2015 509 909 19.96 22.99

2016 512 911 20.66 23.21

2017 514 918 21.37 23.46

2018 515 917 22.11 23.57

2019 518 920 22.89 23.81

2020 519 919 23.72 24.01

2021 521 923 24.58 24.20

2022 522 925 25.49 24.38

2023 522 928 26.44 24.55

2024 523 930 25.15 24.02

Exhibit C-5

Total Economic Development Impacts

A B C D E

year employment population wages value added

millions

1965 200 49 1.19 6.69

1966 1266 371 7.79 41.52

1967 2540 1068 16.46 82.4

1968 3584 2058 22.31 115.44

1969 6233 3626 42.09 195.06

1970 6184 5286 46.33 192.43

1971 8837 7464 71.69 280.66

1972 9205 9751 82.35 295.15

1973 10409 11939 100.8 336.1
Economic Development Impacts by Year

Appendix C C-8

1974 8959 13741 91.35 272.75

1975 6099 14691 68.07 180.28

1976 5541 15248 62.41 162.35

1977 5600 15728 63.9 163.31

1978 6031 16178 70.71 177.2

1979 7408 16972 93.78 220.87

1980 7295 17757 97.8 213.69

1981 7259 18364 98.99 215.28

1982 8194 19090 121.06 244.34

1983 9368 20125 159.34 287.29

1984 8897 20904 148.15 277.44

1985 9309 21486 159.21 295.54

1986 9903 22092 178.14 323.31

1987 11088 22864 215.36 368.72

1988 11580 23618 232.19 392.36

1989 12747 24453 272 441.27

1990 13015 25295 281.56 451.82

1991 13580 26226 319 473.55

1992 14475 27327 356.84 514.74

1993 14614 28359 368.22 527.15

1994 15428 29366 409.77 564.92

1995 16264 30419 426.08 610.75

1996 18229 32471 427.16 643.49

1997 19494 34609 453.03 694.35

1998 20687 36700 478.05 752.63

1999 21904 38907 502.52 816.44

2000 23083 41335 527.64 864.24

2001 24269 43864 554.31 898.55

2002 25439 46437 582.78 968.12

2003 26516 49016 610.68 1034.99

2004 27631 51579 646.33 1113.89

2005 29154 53664 659.32 1235.38

2006 30554 55481 701.37 1314.27

2007 31986 57484 746.21 1392.95

2008 33365 61326 791.86 1469.97

2009 34721 65036 840.22 1547.2

2010 36032 68606 889.83 1623.71

2011 37332 72043 942.02 1700.36

2012 38597 75339 996.36 1776.73

2013 39823 78503 1052.99 1851.61

2014 41042 81544 1114.96 1927.89

2015 42193 84483 1177.77 2001.76

2016 43300 80107 1235.24 2062.62

2017 44440 82814 1304.76 2138.26
Economic Development Impacts by Year

Appendix C C-9

2018 45510 85413 1375.15 2210.9

2019 46564 87956 1449.35 2284.11

2020 47579 90428 1525.75 2356.28

2021 48608 92859 1606.87 2429.9

2022 49690 95295 1694.54 2508.26

2023 50779 97727 1787.58 2587.95

2024 51855 100150 1884.72 2667.89