As a designated Appalachian Development Highway, Corridor H is expected to assist in regional economic development. Many areas within the Appalachian Development Region, including most of the areas served by Corridor H, have unemployment rates above both the state and national averages.

Unemployment Rates by County for November 2000

Will Corridor H bring higher employment and better economic conditions to the project area? The economic study conducted during the environmental analysis for the project identified the project area's potential for economic development. With its already developed industrial parks in place, its varied resources and its available workforce, the area's potential for economic development appears excellent.

One way - and probably the best way - to determine if Corridor H will bring lower unemployment and economic development is to examine what other completed Appalachian Development Highways have done for their regions. A study completed in 1998 for the Appalachian Regional Commission did just that. The following is a brief synopsis of the ARC study:

Appalachian Development Highways Economic Impact Studies Prepared for the Appalachian Regional Commission
By Wilbur Smith Associates, July 1998

Congress established the Appalachian Regional Commission (ARC) in 1965. The intent was to foster and promote the economic and social development of the Appalachian Region which includes all of West Virginia and portions of other states from Mississippi to New York.

The Appalachian Development Highway System (ADHS)
In order to promote economic development in the Region, Congress authorized the Commission to carry out a number of programs, including the development of the Appalachian Development Highway System. The ADHS is a 3,440-mile network of highways providing essential transportation access for improving the Appalachian Region's economic position. The ADHS has 26 corridors and, to date, is 75% complete.

The Economic Study
This study focuses on 12 of the 26 ADHS highway corridors that are largely complete and determines the extent to which these corridors have helped the Region's economy. The full details of the analysis are documented in a study volume entitled "Appalachian Development Highways: Economic Impact Studies," dated June 11, 1998.

Key Study Issues
As part of this analysis, economic benefits and economic costs are presented based upon the travel efficiencies created from the improved highways. These travel efficiencies are in the form of reduced travel time, reduced vehicle operating costs and a reduced number of accidents. The improved travel efficiency along ADHS corridors ultimately leads to an increase in economic production, job opportunities, wages, population and travel benefits to the people and the communities the highways serve. A major objective is to quantify and present these impacts.

Economic Development Impacts

Increase due to ADHS	1975	1995	2015
Jobs	6,100	16,270	42,190
Population	14,690	30,420	84,480
Wages	$68 million	$426 million	$1,178 billion
Value Added	$271 million	$1,002 billion	$2,975 billion

Study Conclusion

ADHS Has Created Jobs - By 1995 a net increase of 16,000 jobs are estimated to have been created that would not have existed without the completed portions of the ADHS; it is estimated that these twelve corridors will, by the year 2015, have created a net increase of 42,000 Appalachian jobs. ADHS Has Led to Increased Production - The net increase in value added was $1 billion in 1995 and will increase to $2.9 billion by the year 2015. ADHS Has Created Efficiency - The ADHS highway corridors have created travel efficiencies valued at $4.89 billion over the 1965-2025 period. The Federal Investment is Warranted - Over the life cycle of the ADHS, for each $1 invested, the return is $1.18 in efficiency benefits, and $1.32 in economic impact benefits. These are indicative of a good use of tax payer funds. All ADHS Corridors Yielded Benefits - All of the twelve completed ADHS corridors produce efficiency benefits, from a corridor-specific low of $59 million to a corridor high of $1.2 billion. Many People Have Benefited - While the most direct beneficiary of the ADHS is the highway user, non-users of the highways were also positively impacted - due to job creation, better jobs (wages) and other opportunities. The ADHS Has Made Appalachia More Competitive - The ADHS highways have helped the Appalachian Region to become more competitive for economic opportunity. This competitiveness is valued at $2.7 billion over the 1965-2025 period.

The ADHS cannot take credit for all growth, or even a majority of the growth, in Appalachia's prosperity. But it can take credit for enough growth (42,000 jobs, 84,000 people, $2.9 billion wages, $6.9 billion value added) to demonstrate that the ADHS has been a good investment in Appalachia's, and America's, future.
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