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It’s easy to figure out that driving less means more time to do other things. But can it also result in money in the bank? According to economist Joe Cortright, cities and their residents might be reaping financial dividends by investing in transit and walkability, and mixing uses so that jobs and housing are close to one another.

The study finds that $2.6 billion a year, or about 3 percent of Portland’s annual economic output, is saved by residents driving 20 percent less than other American urban residents. Fewer miles traveled means less time driving, less money spent on gas— and more time and more money to spend elsewhere. It’s not just about Portland’s transit or bike culture, it’s about developing in such a way that car trips, if necessary at all, are shorter than elsewhere.

“This isn’t all about transit,” Cortright told The Oregonian. “Most people are still commuting by automobile, and shorter commutes are better than longer commutes, and that’s a principal factor here.”

The bottom line? “Though transit, bicycling and walking are relatively minor contributors to Portland’s savings, the study implies that development patterns that shorten commutes and facilitate walking, bicycling and using transit can have a positive economic impact.”

Read the study on CEO’s for Cities, and the article in The Oregonian.