I've been tasked with developing an economic impact analysis of adding several new bus routes. Besides the additional operations spending I believe user savings should be examined. Several agencies offer commuter cost savings per mile data when switching from automobile to public bus travel (basically a reduction in auto fuel and maintenance spending).
1) Would the total cost savings be run as a change (increase) in household spending?
2) And to be comprehensive, shouldn't I also run the corresponding reduction in auto fuel and maintenance spending? And if so, would the results likely be a wash, just a switch in spending behavior between categories, not an increase in economic activity?
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