TRANSPORT
The relationships between land values, innovation and transportation improvements are at the heart of growth management. In general, the relationships between land values, innovation and transportation improvement can be based on a hedonic model that uses a clear behavioral basis describing the principal actors and choices involved in urban development and transportation. The use of this model incorporates the historical data, using regression between land values to include the effect of site, neighborhood, and transport accessibility. The conclusions are so far point that land prices and innovations in the neigbourhoods are is affected by the accessibility and transportation improvements.
Broadly speaking, the link between land use, land value, and innovation gives rise to different travel demands, which in turn leads to higher growth of the neighborhood, raising further the value of the land. In many growing areas of the United States, the vast majority of housing being located in zones that were laid out with automotive accessibility dominantly in mind, leading them to make more choices to sort themselves by their environmental preferences and needs for accessibility. However, congestion and air problems can be the side effects, local land use regulation in the form of zoning and negotiated agreements, together with transportation regulation pertaining to minimum roadway and parking standards may be the most significant for enhancing the value of the lands and innovation. In general, growth center proponents argue that new highway construction may help to reinforce urban areas along a route and may eventually spread growth to peripheral lagging regions.
2) Linking public policy and transport investment marks the belief that public policy has a larger role to play in stimulating regional development as well as residential development. In particular, by offering incentives to the private sector for making residential areas accessible, and lowering of the federal regulations for the land use, the residential neighborhoods can select their preference for the best choice of the transportation. However, the policy makers can also stimulate regional growth by undertaking the highway construction projects that employ local labor and purchase from local building supplies, which have multiplicative effects on the regional economy. The magnitude of these multiplier effects depend on the extent of inter-industry linkages, inter-regional leakages. These effects in turn lead to higher income among the local people that ultimately lead to the growth of the residential areas that stimulate the further growth of the accessibility and transportation.
