
Because the transportation sector is a significant contributor to, and foundation for, economic activity, many broader economic and community initiatives have a large transportation component. Many states and local governments have policies in place to improve quality of life in cities by improving environmental conditions and developing community spaces that are clean, efficient, economically prosperous, productive, and conducive to high quality resident life. City planning can have a significant impact on transportation emissions. For example, transit-oriented development can reduce vehicle miles traveled (VMT) in private vehicles and reduce the number of vehicles on the road, which can reduce congestion and emissions. These policies can also be paired with clean and electrified mass transit initiatives to even further reduce emissions. Other policy choices can increase opportunities for bicycling and cycling commuting, such as bike lanes and bike-friendly traffic regulations, which also improve city foot traffic and economic activity and can help reduce traffic-related injuries and fatalities.
Congestion reduction is also a common goal of policymakers. When congestion contributes to longer commutes, it can lead to increased rates of negative health conditions (such as obesity and depression) and lower life satisfaction. Congestion above certain levels can also decrease the rate of employment and productivity growth. Reducing congestion by reducing vehicles on the road can contribute to lowering these negative health and economic outcomes as well as potentially lowering emissions (both through fewer cars on the road and reducing the amount of time spent emitting while stuck in traffic). However, congestion reduction does not necessarily result in emissions decreases if such reduction results in more vehicles in use or reduced idling emissions are offset by increases in the speed of traffic (emissions increase per mile traveled above certain thresholds). Policymakers can make efforts to design programs to target emissions reductions and other environmental outcomes, such as by reducing congestion with the use of shared transport and use of non-vehicle-based transportation methods (e.g., walking, biking).
Policies can also be designed to specifically benefit low- and moderate-income and disadvantaged communities. These communities, which have the fewest resources to address environmental challenges, are often those most exposed to local air pollution and can be the most vulnerable to climate change risks. In addition, for a true market transformation across the transportation sector, it will be critical to specifically conduct outreach to and design programs that benefit disadvantaged communities.

Policies with the Potential to Contribute to Economic Development Goals
