Chapter 3. Transportation Infrastructure in the U.S.

Abstract Support for massive investments in transportation infrastructure, possibly with a change in the share of spending on transit, seems widespread. Such proposals are often motivated by the belief that our infrastructure is crumbling, that infrastructure causes economic growth, that current funding regimes disadvantage rural drivers at the expense of urban public transit, or that capacity expansions will reduce congestion. In fact, most U.S. transportation infrastructure is not deteriorating and the existing scientific literature does not show that infrastructure creates growth or reduces congestion. However, current annual expenditure on public transit buses exceeds that on interstate construction and maintenance. The evidence suggests high returns to a careful examination of how funding is allocated across modes, but does not suggest high returns to massive new expenditures.