This report addresses the potential economic and development impacts that high-speed rail (HSR) may bring to California. It consists of two parts: 1) a systematic review of existing research on the impacts of high-speed rail after its implementation in various countries, with a focus on Europe; and 2) a comparative case study analysis of the economic impacts of HSR in selected station-cities in France, Spain and Italy. The case studies were selected with the help of an international advisory board for the project and with an eye towards identifying cities that bear some similarities with certain Phase 1 California station-cities, as requested by the California High Speed Rail Authority. The comparative case study analysis presents a detailed description of each stationcity, its station development, and the impacts that may be associated with HSR service. Finally, the discussion section brings the findings together and highlights how they may be applicable to California.

As a whole, this study suggests that the impacts of HSR could range from bringing economic development, stimulating population growth, and spurring transformation of the built environment, possibly leading to gentrification in certain locations. However, previous experience from abroad shows how not all station-cities are likely to experience the same impacts, and certain conditions may foster greater economic development. Station location and connectivity to downtown areas can be particularly important in influencing these impacts, while peripheral stations in most cases have been less able to attract land use development and relocation of activities. The availability of rail service connecting a station-city to larger cities and major markets and the articulation of urban planning and policy are also key in determining the development of the areas around HSR stations.

This research indicates that HSR service can lead to profound transformation in cities, but HSR alone may not be enough to bring about the desired economic development for California’s station-cities. To encourage positive economic impacts from HSR, the planning and design of California HSR stations and services (including feeder transportation service to access the stations) must be integrated with the vision and urban plans of each station-city.

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