Cost overruns and demand shortfalls – Deception or selection?

A number of highly cited papers by Flyvbjerg and associates have shown that ex ante infrastructure appraisals tend to be overly optimistic. Ex post evaluations indicate a bias where investment costs are higher and benefits lower on average than predicted ex ante. These authors argue that the bias must be attributed to intentional misrepresentation by project developers. This paper shows that the bias may arise simply as a selection bias, without there being any bias at all in predictions ex ante, and that such a bias is bound to arise whenever ex ante predictions are related to the decisions whether to implement projects. Using a database of projects we present examples indicating that the selection bias may be substantial. The examples also indicate that benefit–cost ratios remain a useful selection criterion even when cost and benefits are highly uncertain, gainsaying the argument that such uncertainties render cost-benefit analyses useless.     

Experiential Incrementalism: On the Theory and Technique to Implement Transport Plans and Policies

The paper describes an approach to the vexing problem of transport planning and policy. It deals jointly with three questions, which in today's practice are addressed separately: How are hypotheses about transport problems and alternatives to their solution developed? How can a good plan or policy be identified? What is the process of implementing a transport plan or policy? In doing this the paper has the ambitious objective of proposing a new model and process for transport planning and policy. It is applicable in developed and developing countries and is not restricted to the transport sector. The paper builds on, and is a reinterpretation of two cornerstone transport planning and decision-making models – the CATS (Chicago Area Transportation Study) Planning and Design Model and Braybrooke and Lindblom's Disjointed Incrementalism. It advances a technique of experiential incrementalism (termed polisanalysis) to develop and implement plans and policies. It proposes that problems should be diagnosed by observation and continuous data collection; that their continuous analysis, finding the “cure”, and implementation take place through the method of experiential incrementalism. In this method interventions are grounded on the theories of neoinstitutional economics and psychoanalysis and derived using contact function, explained in the paper, which renders the method scientific replicability. Experiential incrementalism can employ a wider array of options in planning and policy than is presently thought possible. Like other scientific methods, its application requires rigorous training.     

Protection of Critical Waterborne Transport Infrastructures: An Economic Review

It is essential that transport infrastructures are protected against events which cause their failure. At an optimal level of protection, the sum of protection costs and expected residual damages following from disruptions will be minimized. In most cases however, this optimal level is not achieved because infrastructure protection is susceptible to various market and government failures. This brings us to the question who (a private or public actor) should do how much (the level of protection and intervention). This question is addressed in the present paper.

The starting point of the paper is the Directive of the European Council on the identification and designation of European Critical Infrastructures. We review the protection of critical waterborne transport infrastructures from an economic perspective. The review is based on a literature study and several interviews with Critical Infrastructure experts. For the studied infrastructures, we have identified causes and effects of their failure and examined the private–public roles in protecting them. Considering the market and government failures which occur in such configuration of roles, we propose several changes. We conclude that from a national policy perspective there are two important routes: (1) reinforcement of private sector roles among others by defining liabilities and providing information on risks and (2) strengthening of supra-national collaboration via improving and standardizing regulations, cost-sharing initiatives and penalty systems.     

Modelling the full costs of an intermodal and road freight transport network

This paper develops a model for calculating comparable combined internal and external costs of intermodal and road freight transport networks. Internal costs consist of the operational-private costs borne by the transport and intermodal terminal operators, and the time costs of goods tied in transit. The external costs include the costs of the impacts of both networks on society and the environment such as local and global air pollution, congestion, noise pollution, and traffic accidents. The model is applied to the simplified configurations of both networks using the inputs from the European freight transport system. The objective is to investigate some effects of European Union policy, which aims to internalise the external costs of transport, on the prospective competition between two networks from a social perspective.     

The role of accident exposure in transport system safety evaluations I: Intersection and link site exposure

Realistic predictions of the likely safety performance of advanced transport systems will need to draw on the knowledge accumulated from a large number of safety evaluations which have already been undertaken for existing transport systems. In particular, safety evaluations of future technologies must avoid the methodological pitfalls experienced in extensively researched areas, such as road safety, if such evaluations are to be meaningful. This paper reviews the use of exposure for a broad range of road safety studies, and concludes that unsatisfactory treatment of exposure is a common failing in past evaluations of the effectiveness of road accident countermeasures. Whilst a broad range of safety analyses is discussed, the use of exposure in site safety studies is emphasized. A follow-up paper will extend the discussion to other aspects of accident exposure including exposure measures for large groups of transport system users.     

Crash analysis at intersections in the CBD: A survival analysis model

Enhancing the safety level of urban roads especially in CBDs is paramount. Due to a large number of intersections in what is usually a grid road system in the CBDs, we investigate crashes occurring in and around an intersection. The question of interest in this study is: does the nature of crashes at intersections differ from those of the roads at midblock? Stated more precisely, considering the intersection as a reference point, does the distance to the reference point (i.e. midblock locations on the roads) correlate with different types of crashes compared to that of the intersection? A right answer can lead traffic engineers and safety auditors to propose different safety measures at intersections and the midblock locations. As a pilot study, we collected the last 9 years crash data of the CBD of Melbourne, Australia. For the first time, we employ Survival Analysis models -including Exponential, Weibull, and Log-logistic- to investigate a space-dependent phenomenon (i.e. accidents at proximity to the intersection). Of the outcome, highlights are: (i) police presence at busy intersections during busy night outs and weekends highly improves the pedestrian safety (ii) raised crossings at midblock locations lower likelihood of crashes of pedestrians as well as cars, (iii) lighting conditions at intersections must be watched and kept at a high level. (iv) Severity, likelihood, and location have no known association with the level of congestion. In other words, safety is first, always and everywhere. The results can be of interest to traffic authorities and policy makers in reinforcing traffic calming measures in the cities. The codes developed in this study are made available to the research community to be used in further studies.     

Assessing the social costs of urban transport infrastructure options in low and middle income countries

ABSTRACT

This paper develops cost models for urban transport infrastructure options in situations where motorcycles and various forms of taxis are important modes of transport. The total social costs (TSCs) of conventional bus, Bus Rapid Transit (BRT), Monorail, Metro (Elevated Rail), car, motorcycle, Taxi and Uber are calculated for an urban corridor covering operator, user and external costs. Based on the parameters for a 7?km corridor in Hanoi, Vietnam, the results show the lowest average social cost (ASC) transport modes for different ranges of demand. Motorcycle might be the best option at low demand levels while conventional bus has advantages with low-medium demand. At medium demand levels, bus-based technologies and Monorail are competitive options while Metro, with a higher person capacity, is the best alternative at the highest demand levels. Compared to other modes, the ASCs of car and Taxi/Uber are greater because of high capital cost (related to vehicles) per passenger and low occupancy. Transport planners and decision makers in low and middle income countries (LMICs) can draw on the findings of this study. However, various limitations are identified and additional research is suggested.     

The impact of alternative routeing and packaging scenarios on carbon and sulphate emissions in international wine distribution

There is a large body of research related to carbon footprint reduction in supply chains and logistics from a wide range of sectors; however the decarbonisation of freight transport is mostly explored from a single mode perspective and at a domestic/regional level. This paper takes into account a range of alternative transport modes, routes and methods with particular reference to UK wine imports from two regions: northern Italy and Southeast Australia. The research examines supply chain structures, costs and the environmental impact of international wine distribution to the UK. A number of options are evaluated to calculate the carbon footprint and sulphate emissions of alternative route, mode, method of carriage, and packaging combinations. The estimation of CO₂e emissions incorporates three main elements - cargo mass, distance and method of carriage; sulphate emissions are derived from actual ship routes, engine power and operational speeds. The bottling of wine either at source or close to destination is also taken into consideration. The key findings are: there are major differences between the environmental footprint of different routeing and packaging scenarios; the international shipping leg almost always has a much larger footprint than inland transport within the UK except in the hypothetical case of the rail shipments from Italy using flexitanks. With reference to sulphate, the lowest cost scenario among the sea maximizing options is also the sulphate minimising solution.     

Platooning for sustainable freight transportation: an adoptable practice in the near future?

ABSTRACT

Platooning is an emerging transportation practice that has the potential to solve the problems of the burgeoning transportation industry. A platoon is a group of vehicles, with vehicle to vehicle communication, that travel closely behind one another such that the platoon can accelerate, brake and cruise together. Platoons can improve road safety, be energy efficient and reduce costs. Its complete socio-economic benefits include congestion mitigation, smoother traffic flow, better lane usage and throughput, incentives for green logistics and driver safety. The long-term effect of platooning on road transportation, if extensively deployed, would be better organised traffic flow and efficient tracking of vehicles on the road ushering a multilevel positive impact on the industry. In this study, we attempt to answer the critical question of whether platooning is an adoptable practice in the near future and discuss an agenda to take platooning closer to implementation on the ground by highlighting the opportunities for future research. We also present a conceptual framework to help researchers, academicians, policy makers and practitioners for the adoption of platooning into the transportation industry.     

Repeatability & reproducibility: Implications of using GPS data for freight activity chains

As transport modellers we are interested in capturing the behaviour of freight vehicles that includes the locations at which vehicles perform their activities, the duration of activities, how often these locations are visited, and the sequence in which they are visited. With disaggregated freight behaviour data being scarce, transport modellers have identified vehicle tracking and fleet management companies as ideal third party sources for GPS travel data. GPS data does not provide us with behavioural information, but allows us to infer and extract behavioural knowledge using a variety of processing techniques. Many researchers remain sceptical as specific human intervention, referred to as ‘expert knowledge’, is often required during the processing phase: each GPS data set has unique characteristics and requires unique processing techniques and validation to extract the necessary behavioural information. Although much of the GPS data processing is automated through algorithms, human scrutiny is required to decide what algorithmic parameters as considered ‘best’, or at least ‘good’. In this paper we investigate the repeatability and reproducibility (R&R) of a method that entails variable human intervention in processing GPS data. More specifically, the judgement made by an observer with domain expertise on what clustering parameters applied to GPS data best identify the facilities where commercial vehicles perform their activities. By studying repeatability we want to answer the question ‘if the same expert analyses the GPS data more than once, how similar are the outcomes?’, and with reproducibility we want to answer the question ‘if different experts analyse the same GPS data, how similar are their outcomes?’ We follow two approaches to quantify the R&R and conclude in both cases that the measurement system is accurate. The use of GPS data and the associated expert judgements can hence be applied with confidence in freight transport models.     

Measuring user benefits of changes in the transport system when traveler awareness is limited

This paper derives and illustrates measures for the ex ante evaluation of user benefits associated with improvements in the transport system. In contrast with conventional analyses, we assume that awareness among travelers of changes in the transport system is limited and grows over time. Specifically, we postulate that each day (trip) provides travelers with an opportunity to learn about changes that occurred recently in the transport system. This learning process may involve learning through direct experience and indirect learning through for example social networks or information provision. Our measure of user benefits incorporates the conventional logsum-measure as a special case (when full awareness is assumed) and has a closed form solution under reasonable error term assumptions. A numerical illustration provides a first sign of face validity. We derive and discuss a number of practical implications, and discuss possible model extensions.     

Applying behavioural theories to studying the influence of climate change on young people’s future travel intentions

Transport policy in the UK is seeking to promote the development of low carbon transport technology and to encourage people to choose to use low carbon travel options. This paper draws on existing behavioural theories to study young people’s travel behaviour intentions and the influence on these from their knowledge of, and willingness to act on, climate change. The study involved a series of focus groups with young people aged 11-18 years, where attitudes to transport modes, attitudes towards climate change and travel behaviour intentions were discussed. Knowledge and values are established as the key determinants of young people’s attitudes and behaviour intentions towards transport in the context of climate change. More specifically it is established that young people’s values emphasise speed and freedom and that it is important to young people that the mode of transport they choose is reflective of the image they want to portray.     

A method to evaluate equitable accessibility: combining ethical theories and accessibility-based approaches

In this paper, we present the case that traditional transport appraisal methods do not sufficiently capture the social dimensions of mobility and accessibility. However, understanding this is highly relevant for policymakers to understand the impacts of their transport decisions. These dimensions include the distribution of mobility and accessibility levels over particular areas or for specific population groups, as well as how this may affect various social outcomes, including their levels of participation, social inclusion and community cohesion. In response, we propose a method to assess the socially relevant accessibility impacts (SRAIs) of policies in some of these key dimensions. The method combines the use of underlying ethics principles, more specifically the theories of egalitarianism and sufficientarianism, in combination with accessibility-based analysis and the Lorenz curve and Gini index. We then demonstrate the method in a case study example. Our suggestion is that policymakers can use these ethical perspectives to determine the equity of their policies decisions and to set minimum standards for local transport delivery. This will help them to become more confident in the development and adoption of new decision frameworks that promote accessibility over mobility and which also disaggregate the costs and benefits of transport policies over particular areas or for specific under-served population groups.     

Testing a Framework for the Efficiency Assessment of Road Safety Measures

Abstract

The objective of this research is to develop and test a framework for efficiency assessment of road safety measures and evaluate its use in decision‐making. An exhaustive review of standard methodologies and practices related to cost‐effectiveness and cost–benefit analyses is carried out for that purpose. Moreover, a number of case studies are performed, concerning the efficiency assessment of various road safety measures in different countries, covering different types of road safety measures (user‐, vehicle‐ or infrastructure‐oriented, policy or enforcement, etc.), ranging from national to local levels of implementation and including both ex ante and ex post evaluations. From the results conclusions are drawn on the efficiency of different road safety measures and the related determinants. Furthermore, the case studies reveal a number of methodology and data issues for which further research is required. The procedures and barriers involved in the use of efficiency assessment techniques at different levels of decision‐making are also highlighted by means of feedback received during and after the various case studies. On the basis of these results, a framework for the promotion, implementation and evaluation of efficiency assessment in road safety decision‐making is proposed. A particular set of recommendations is also presented regarding the treatment of barriers (fundamental, institutional or technical) within the efficiency assessment itself and the related decision‐making process.     

Choice of mode of transport for long-distance trips: Solving the problem of sparse data

Transport planning is usually based on models’ forecasts, but the reliability of their outputs depends so much on the quality of input-data they are fed with. Discrete-choice models are used to characterise travellers’ behaviour in choosing their transport mode. Their calibration process is usually based on data stemming from household survey campaigns. However, the modelling in multimodal and intermodal transport on an interurban level is far more complicated and costly than in the case of an urban area. An alternative way to reduce costs is achieved by designing a choice-based sampling strategy where household surveys are replaced by specific surveys for each transport mode. This strategy generates a non-random sample that has to be treated correctly during the estimation process. In principle, the sample does not represent population market quotas for each different transport option. Moreover, as a result of both physical and functional constraints, the survey period cannot cover all origin–destination pairs (O–D pairs) in an optimal way and, consequently, the above-mentioned bias also affects each different individual O–D pair or, at least, group of pairs. In order to overcome this problem, this study presents a new procedure derived from the introduction of maximum likelihood estimators. These estimators assume the original mode options in terms of population quotas and in terms of O–D groups of pairs. The procedure is based on the optimisation of an objective-function to correct the above-mentioned bias in a way similar to the estimators of samples based on different choice options. The method named DWELT estimates the parameters corresponding to each explanatory variable using mode shares for each O–D pair or group of pairs. DWELT has been successfully validated in the case study of the Madrid–Barcelona interurban corridor in Spain. This result allows to achieve a more flexible cheaper survey procedure for interurban transport planning activities. Therefore transport policy strategies could be better designed and tested with lower costs.     

Intertemporal issues and marginal abatement costs in the UK transport sector

An energy system model, UK MARKAL, is combined with decomposition analysis and sensitivity analysis to derive mitigation costs and emissions reduction potentials in the UK transport sector. The paper tests the robustness of a marginal abatement cost curve for the year 2030 for two parameters: path dependency and discount rate. Path dependency is found to be a significant, yet not substantial, influencing factor on the shape and the structure of the marginal abatement cost curve. Doubling the technology-specific hurdle rates shows that abatement costs increase significantly. The results suggest that policy makers should be aware of the underlying carbon tax pathway and whether results are based on society’s view or a private perspective.     

Consistency and fungibility of monetary valuations in transport: An empirical analysis of framing and mental accounting effects

Governments around the world use monetised values of transport externalities to undertake project appraisal and cost–benefit analysis. However, because different types of benefits are monetised (e.g., travel time savings, preventing statistical fatalities, reliability, etc.) the question naturally arises as to whether they are consistent. That is, whether a “dollar is a dollar” as welfare economics requires, or whether spending money in one area carries a different disutility from spending money in another area. This would equate to a violation of fungibility, which is the property of a good or a commodity whose individual units are capable of mutual substitution. The view that money is not fungible is explained in behavioural economics through theories of framing and mental accounting. This paper describes the results of a stated choice experiment designed to test the fungibility and consistency of monetary valuations in transport. From a nationally representative sample, we elicit direct values for the three pairwise trade-offs between travel time, travel cost, and safety. We then show that in the context of our analysis, any trade-offs inferred on the basis of other trade-offs, as is common practice (e.g. inferring a safety vs time trade-off on the basis of monetary valuations for time and safety), produces biased results, suggesting that the assumption of fungibility does not hold. Specifically, we find that time is valued more highly when valued directly by cost than when traded with safety, and the reverse is true for safety.     

Social Impacts of Transport: Literature Review and the State of the Practice of Transport Appraisal in the Netherlands and the United Kingdom

Abstract

Transport appraisals in European countries increasingly address three dimensions of sustainability—economic, ecological and social. However, social impacts of transport have been underexposed in (ex‐ante) transport project appraisal, at least in the Netherlands. Firstly, this article presents a theoretical framework describing the relationships between determinants of social impacts of transport; it also provides a definition and categorization of those impacts. Secondly, the article reviews the state of the practice of national transport project appraisal in the Netherlands and the United Kingdom. The article shows that social impacts of transport investments can take on many forms and their levels of importance may vary widely, in project appraisal. The UK transport appraisal guidance includes a spectrum of social impacts through quantitative and qualitative assessments that is broader than the Dutch appraisal guidance. However, it does not cover the full range as identified in the literature. This holds, in particular, for the temporary impacts of transport investments, health impacts, social cohesion, the distribution and accumulation of impacts across population groups and social justice. All in all, it can be concluded that there is a long way to go before social impacts of transport projects are completely included in appraisals, in a way that allows us to compare them to economic and ecological effects.     

Evolving Narratives of Low-Carbon Futures in Transportation

Scenarios of low-carbon transport demonstrate that a vast range of different outcomes is possible and contingent on policy, technology and cultural developments. But a closer look indicates that different schools of thought suggest possible pathways diverging in their fine structure. This perspective reveals how three different scientific communities — integrated assessment modelers, transport-sector modelers, and place-based modelers — emphasize distinct solution domains. While integrated assessment models focus on fuel composition, transport-sector models put slightly higher emphasis on efficiency measures; in turn place-based research specifies idiosyncratic behavioral and infrastructural mitigation options that are likely to be beneficial in realizing local co-benefits. These specific local approaches could mitigate urban transport emissions by 20–50%, higher than that revealed in aggregate global models. We discuss differences in approach, possibilities for reconciliation, and the implications of normative assumptions. Targeted three-directional interactions would foster comprehensive understanding of possible low-carbon transportation futures.     

Assessment of policies and detection of unintended effects: Guiding principles for the consideration of methods and tools in policy-packaging

Single policies or entire policy packages are often assessed using different methods aiming at a quantification of effects as well as the detection of undesired outcomes. The knowledge of potential impacts is essential to take informed policy actions. Hence, there is a constant need for efficient assessment approaches to support policy decision-making. A broad range of such assessment methods is used in policymaking. Some of them are using quantitative data; others are characterized by qualitative information, observations or opinions. Practical experiences with transport policy prove that these methods all have their pros and cons, but none of them are able to detect the full range of effects. This leads to important questions this article deals with, such as what are the strengths and limitations of the different tools and methods for assessing impacts, and how should different approaches be integrated into the policymaking processes?We analyze the ability of assessment methods to detect different kinds of intended and unintended effects, and introduce the concepts of structurally open (mainly qualitative) and structurally closed (mainly quantitative) methods. It is argued that these concepts support making the pros and cons of the tools and methods more explicit and, thus, allow integrating the different tools and methods into the process of policy packaging. Based on a policy package example, we provide practical recommendations on how to integrate different assessment methods adequately and show that both quantitative and qualitative tools should be used in different phases of the process. The main recommendation is to alternate the application of assessment methods with structurally open methods used in the beginning and the end of the policymaking process and applying structurally closed methods in between.