Intelligent transportation systems: an impact analysis for Michigan

Are Intelligent Transportation Systems (ITS) affecting transportation industry only? ITS are currently perceived as a contribution to transportation industry only; however, by quantitatively analyzing the economic impact of ITS on the state of Michigan, this work attempts to answer the posed question. The quantitative economic analysis is carried out through the well‐established Leontief's Input–Output (I‐O) model. This model is employed to establish ITS effects on each industry by detailing RIMS II I‐O tables for Michigan constructed from the national I‐O tables. Major savings by ITS identified as reduced time delays and fuel cost savings are quantitatively simulated thereby generating an overall cost reduction factor which is incorporated in Michigan I‐O tables to modify their characteristics. ITS impact on each industry in I‐O tables is achieved by maximizing effects on certain selected industries. Impact multipliers that are customary macro‐economic measures for I‐O analysis are then calculated for all the aggregated industries. Multipliers comparison for the three cases namely before ITS implementation, conventional improvement methods, and after ITS implementation is evaluated. These values suggest greater economic benefits that may be achieved by statewide implementation of the ITS. Copyright © 2010 John Wiley & Sons, Ltd.