vvEPA
United States
Environmental Protection
Agency
Air and Radiation
EPA420-S-98-011
July 1998
Office of Mobile Sources
TRAQTechnical Overview
Transportation Air Quality Center
Transportation Control Measures:
Telecommuting
EPA's main strategy for addressing the contributions of motor vehicles
to our air quality problems has been to cut the tailpipe emissions for
every mile a vehicle travels. Air quality can also be improved by
changing the way motor vehicles are used—reducing total vehicle miles
traveled at the critical times and places, and reducing the use of highly
polluting operating modes. These alternative approaches, usually
termed Transportation Control Measures (TCMs), have an important
role as both mandatory and optional elements of state plans for
attaining the air quality goals specified in the Clean Air Act. TCMs
encompass a wide variety of goals and methods, from incentives for
increasing vehicle occupancy to shifts in the timing of commuting trips.
This document is one of a series that provides overviews of individual
TCM types, discussing their advantages, disadvantages, and the issues
involved in their implementation.
> Printed on Recycled Paper
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Telecommuting
Telecommuting is a way of reducing vehicle miles traveled
(VMT) by employees to and from work. It is defined as
working at home or at an alternate location and communicating
with the usual place of work using electronic or other means,
instead of physically traveling to a more distant work site. VMT
reduction leads to a drop in vehicle pollution emissions, and a
drop in traffic congestion (which may result in further reductions
in emissions). The term "telecommuting" is often used
interchangeably with "working from home." Running a business
from a home office is not considered telecommuting. In addition,
working for an employer from home is only one form of
telecommuting. Another variation of telecommuting involves
working at remote satellite centers that may be run by one
company, or by several companies. A common misunderstanding is that telecommuting must
involve a direct link between an employee's home computer and their company's computer at the
office. In fact, telecommuting employees may work on a computer linked to their company, but
may also work on a stand-alone computer, or perform work tasks which do not require a
computer (e.g., reading or paper work). [1]
Contents
O Costs and Benefits
© Implementation
© Keys to Success
O Equity Issues
© Participation Rates
© Sources
9 On-line Resource
1. Costs and Benefits
The environment benefits from telecommuting because of reduced pollution associated
with reduced employee driving. Combustion of fuel (primarily gasoline) accounts for emissions
of 70 percent of smog precursors, and 90 percent of carbon monoxide in urban areas. [2] One
study estimated that $23 billion could be saved in transportation, environmental, and energy costs
if there were a 10 to 20 percent increase in telecommuting. [1] Although work-related trips
decrease, non-work-related trips (e.g., shopping) may increase, due to increased free time and
flexibility. [1]
The direct costs and benefits of telecommuting can be quantified. Costs include the
following:
Equipment
Training
Telecommunication links
Possible furniture purchases
Insurance
The cost of administering the program.
Although work-related trips
decrease, non-work-related trips
may increase due to increased
free time and flexibility.
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Telecommuting Page 2
If the telecommuter works at home, his or her utility costs will also increase. The indirect
costs are harder to quantify. Employees may not be readily available for face-to-face meetings on
short notice, and new managerial styles have to be developed to continue viable business
activities. Most of the costs associated with telecommuting may be shouldered by the company,
although some programs require that employees provide their own home equipment, such as
computers. Studies performed by the Department of Transportation estimate the yearly costs of
telecommuting to be $350 per employee. [1]
Companies benefit from the following:
^ Decreased employee use of sick leave
**• Decreased turnover
**• Savings on office space
^ Generally increased productivity and employee morale
Employees benefit by not incurring operation and maintenance costs associated with
operating a motor vehicle, or reduced costs if they work at a satellite office. Telecommuting to a
satellite office may change an employee's mode of transportation (e.g., riding a bicycle, or
walking), potentially benefiting employee health. Reducing vehicle miles traveled by employees
lessens their risks to traffic related fatalities. Approximately 43,500 people died during highway
accidents in 1991. [2] Employees benefit by not spending time commuting to the office. Studies
indicate that people tend to value their time spent in traffic congestion at $7 per hour. [2] With
fewer people on the road, those not telecommuting may also benefit from reduced congestion.
Telecommuting may reduce congestion by removing traffic from congested arterial
roadways during peak periods several days per week. However, telecommuting may also remove
traffic from roads that were not congested and may do so only on days such as Monday and
Friday when traffic is lightest. [1] The actual program experience can be expected to lie
somewhere between these two extreme cases. It should be noted that from an air quality
perspective, a trip eliminated is more beneficial than a shorter trip taken to a satellite office
because the latter still produces a cold start and a hot soak. However, shortening the trip does
produce benefits because overall VMT is reduced.
2. Implementation
Some unions have objected to the implementation of telecommuting programs based on
fears that employees working at home would not be eligible for all company benefits.
Telecommuters need to be assured by their company that all necessary benefits will be available,
whether they work in the office, at home, or most likely a combination of these arrangements.
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Telecommuting Page 3
The type of work performed at a company is critical to implementation. Many of the jobs
performed in information industries such as accounting, data processing, and programming could
be performed at home or a telecommuting center. People working in such industries as
construction, however, would not have that option. In any workplace, there will be jobs (e.g.,
clerical and management) where telecommuting is not feasible. Telecommuting to a remote
center may alleviate potential problems associated with home-based telecommuting. The
employee may not have enough space at home to conduct work-related activities effectively. The
home provides many potential distractions, such as television, which are not available to workers
in an office environment. Many managers are concerned that productivity may decrease if
workers are telecommuting. Working at a remote center provides many of the benefits of
telecommuting, notably a shorter drive to the office, while also providing professional and social
interactions common at a traditional office. [3]
3. Keys to Success
Because telecommuting is a relatively
new concept, it is often developed first as a
pilot program. Once a pilot program
involving a small number of employees
proves successful, it may be expanded to a tne work force-
Once a pilot program involving a small
number of employees proves successful,
it may be expanded to a greater part of
greater part of the work force. To implement
a telecommuting program, the employer must
develop new policies and procedures for people working out of the office. Management must
invest time and resources to evaluate the effectiveness of employees working out of the office to
ensure that productivity is maintained (or increases). Key elements of establishing a program
may include the following:
**• The telecommuting arrangement should be voluntary between the company and
worker. Workers should not be forced to work away from the main office. The
employee and employer should have the option of terminating the arrangement at
any time.
^ Job performance needs to be carefully monitored and tasks very clearly defined.
**• Proprietary information needs to be secured at the employee's home.
**• Equipment needed (usually a computer) must be available to the employee. The
employee may use either his or her own equipment or have equipment provided
by the company.
^ Utility and phone charges should be shared by the company. The employee will
experience increased utility and phone bills associated with conducting business at
home.
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Telecommuting Page 4
Tax implications need to be carefully examined by the employee. There may be
advantages to establishing a home office, which are detailed by the IRS.
Arrangements that are associated with employees telecommuting should be clearly
spelled out in a Telecommuting Agreement that addresses consequences of
violating the agreement. [1]
4. Equity Issues
Telecommuting benefits those in the information and service industries or those able to
function independently once work has been assigned. By 1980, it was estimated that over half of
the employment positions in the United States met these criteria. [1] The scope of the work
assigned must also be significant enough to occupy an employee for an entire work day.
Telecommuting potentially affects employers, employees, and employees' household members.
There is the potential that because some employees are eligible for telecommuting and others are
not, issues of equity could surface.
5. Participation Rates
A study by Washington state found that levels of telecommuting in the United States are
highest in California. The breakdown of penetration (i.e., the percentage of workers who
telecommute at least some of the time) is as follows:
Penetration of Telecommuting: California vs. United States
Region Penetration (% of all workers)
National 0.8-1.9%
Los Angeles Area 7.6%
San Francisco Area 8.1%
Source: Travel Characteristics and Impacts of Telecommuting, Washington State Energy Office
If telecommuting is going to benefit the nation, regulatory agencies and governments will
have to more actively promote the concept. Given the economic, environmental, and lifestyle
benefits of telecommuting, it should continue to grow in the years to come.
6. Sources
[1] Telecommuting Internet Homepage, U.S. Department of Transportation (December 1996).
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Telecommuting Page 5
[2] Report to Congress, Transportation Implications of Telecommuting, U.S. Department of
Transportation (January 1993).
[3] Impacts of Center-Based Telecommuting on Travel and Emissions: Analysis of the Puget
Sound Demonstration Project, Institute of Transportation Studies, University of California, Davis
(April 1996).
7. An On-line Resource
The Environmental Protection Agency's Office of Mobile Sources has established the
TCM Program Information Directory to provide commuters, the transportation industry, state and
local governments, and the public with information about TCM programs that are now operating
across the country. This document and additional information on other TCMs and TCM
programs implemented nationwide can be found at:
http://www.epa.gov/omswww/transp/traqtcms.htm
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