08 08 COST-BENEFIT ANALYSIS The proposed new high-speed rail system has the potential to generate many benefits for the Northeast Megaregion. These potential benefits can create new relationships between cities, generate new opportunities for economic investment, create sustainable land use patterns, and improve the ability of the Northeast Corridor transportation system to meet future travel demand. Other climate, energy, environmental and safety benefits will also result from this investment. As the necessary capital investments for the proposed system will most likely be provided from public sources, the public and lawmakers alike should understand the relationship between the costs and the benefits of HSR in the Northeast. This chapter uses a cost-benefit analysis methodology in order to determine whether HSR is a worthwhile investment for improving the transportation capacity of the Northeast Corridor. The cost-benefit analysis is used to quantify various benefits and costs into a ratio that compares the large costs and long timeframe of HSR projects against the potential benefits it will provide to the megaregion. 1
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