Lec 21, Project Evaluation Part 1: Impact analysis General characteristics of benefits and costs...
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Transcript of Lec 21, Project Evaluation Part 1: Impact analysis General characteristics of benefits and costs...
Lec 21, Project Evaluation Part 1: Impact analysis
General characteristics of benefits and costs
Estimates of economic costs and benefits A framework for evaluation Social costs of transportation
Two approaches for the assessment of transportation impacts (section 6.3)
What has occurred which would not
have occurred if the transportation
system change had not been
implemented?
We are interested in a with and without comparison. But this is hard to do as the book explains for transportation projects. Ex Post Assessment: Evaluate the current
condition with the previous one. Becomes a “before” and “after” comparison. With this we cannot answer the question above.
A Priori Assessment: This assessment is focused directly at the with and without level of analysis. The major problem with this is that it can estimated impacts only by using forecasted (rather than “real”) data. Good models are needed for this.
What is evaluation? Evaluation The process of determining the
desirability of different courses of action and of presenting this information to decision makers in a comprehensive and useful form. (This reflects the theme of this textbook-- presenting this information to decision makers.)
1. Define how value is to be measured
2. Estimate the source and timing of the benefits and costs of the proposed actions
3. Comparing these benefits and costs to determine a level of effectiveness for that alternative
Evaluation characteristics
Focus on the decisions being faced by decision makers Relate the consequences of alternatives to goals and objectives Determine how different groups are affected by transportation
proposals Be sensitive to the time frame in which project impacts are likely
to occur In the case of regional transportation planning, produce
information on the likely impacts of alternatives at a level of aggregation that permits varying levels of assessment
Analyze the implementation requirements of each alternative Assess the financial feasibility of the actions recommended in the
plan Provide information to decision makers on the value of alternatives
in a readily understandable form and in a timely fashion
These characteristics dictate the type of info, procedure to be used, schedule to follow to make the info timely for decision makers
General characteristics of benefits and costs
Real and pecuniary impacts
Real = those realized by the final consumers of a project or that add to a community’s overall welfare: Pecuniary = gained at the expense of other individuals or group
Direct and indirect benefits & costs
Direct = Related specifically to the objectives of the investment: Indirect = by-product
Tangible or intangible impacts
Tangible = Can assign monetary values: Intangible = those that cannot be easily measured or associated with prices in the marketplace.
Internal or external benefits & costs
If benefits and costs are confined to the study area, they they are internal. Typically transportation facilities have impacts on not only to the study area but to other areas.
User and nonuser benefits & costs
User = benefits and costs solely attributed to the users, usually given prices: non-user = benefits and costs attributed to non-users
Total and incremental costs & benefits
Total = total outlay of dollars used to construct and operate an alternative: Incremental = those that represent the additional costs associated with the proposed changes to the existing system
Estimates of economic benefits and costs
“…Transportation executives need to emphasize productivity and growth over the redistribution of economic activity as the principal objectives of transportation policies and investment programs.”
Macroeconomicimpacts
Generative
Reditributive Financial transfer
(See Table 8.5. “Predictive” means a priori assessment: “Evaluative” means ex post assessment of the projects)
Social costs of transportation
Personal non monetary costs of using motor vehicles
Explicitly priced private sector motor vehicle goods and services, net of producer surplus, taxes and fees
“Bundled”private sector goods (implicitly priced)
Government services charged to motor vehicle users
Monetary externalities (unpriced)
Nonmonetary externalities (unpriced)(See page 498-499 for examples of these categories.)
Distribution impacts
What are the travel activity patterns of different income and racial groups?
Do low-income and minority populations shoulder a disproportionate share of the burdens of transportation facilities
Do low-income and minority populations receive a proportionate share of transportation benefits
Where are transportation investments being spent with respect to populations of different races and income levels
A framework for evaluationA hierarchy of benefits and costs commonly considered as part of a transportation planning process