policy brief

Transportation System Performance: Should We Redefine Induced Demand?

Abstract

In Walkable City, Jeff Speck says that induced demand is the thing that everyone in city planning understands but doesn’t talk about. It may be more accurate to categorize induced demand as the thing that everyone in city planning talks about but doesn’t understand. The issue is muddied by inconsistent definitions of relevant terminology.

This brief explores the various dimensions of induced demand. It is suggested that the term induced demand be used only when referring to the number of trips produced, and that it should not be used when referring to the other characteristics of these trips, such as destination, mode, time-of-day, or path.