Incomplete cost – incomplete benefit analysis in transport appraisal

This paper examines the current application of transport appraisal in the UK, in particular exploring the partiality of cost–benefit analysis (CBA) within the wider multi-criteria analysis (MCA) process. It argues that applying a quantitative assessment of the varied impacts of complex transport projects can only be partial within the CBA. Analysis can overlook social, human life, environmental and built environment impacts, and projects can be inconsistent with the planning strategy for an area. The application of CBA is critically reviewed using two case studies: the proposed upgrade of the South Fylde railway line and the Heysham-M6 Link Road, both from North West England. A participatory MCA process is suggested to help improve the process of transport appraisal, as part of an improved public debate on transport investment priorities.     

EFECT – evaluation framework of environmental impacts and costs of transport initiatives

EFECT is a generalised methodological framework for evaluating the impacts resulting from transportation projects with a specific orientation to environmental impacts. The innovative aspect of the methodological framework is the combination of Multi-Criteria Analysis (MCA) with Cost-Benefit Analysis (CBA) methods to come up with an overall assessment of transport initiatives’ impacts over different geographical regions and time periods. Thus, it addresses both spatial and time impacts of transportation networks for all modes. The framework comprises four steps: structuring, weighting, rating, and exploring. Uncertainty is explicitly treated in the framework through fuzzy sets or, indirectly, through sensitivity testing. EFECT, using an additive function combining MCA and CBA methods, provides simplicity and intuitive understanding of results. This allows the use of either a core approach with a basic set of criteria and weights, or the application of a more detailed evaluation, when needed. The way EFECT is applied and the results produced are presented through a case-study example.     

Assessment of large transport infrastructure projects: The CBA-DK model

This paper presents a newly developed decision support model to assess transport infrastructure projects: CBA-DK. The model combines use of conventional cost–benefit analysis to produce aggregated single point estimates, with quantitative risk analysis using Monte Carlo simulation to produce interval results. The embedded uncertainties within traditional CBA such as ex-ante based investment costs and travel time savings are of particular concern. The paper investigates these two impacts in terms of the Optimism Bias principle which is used to take account of the underestimation of construction costs and the overestimation of travel time savings. The CBA-DK methodological approach has been used to apply suitable probability distribution functions on the uncertain parameters, thus resulting in feasibility risk assessment moving from point to interval results. The proposed assessment model makes use of both deterministic and stochastic based information. Decision support as illustrated in this paper aims to provide assistance in the development and ultimately the choice of action, while accounting for the uncertainties surrounding transport appraisal schemes. The modelling framework is illustrated by the use of a case study appraising airport and runway alternatives in the capital of Greenland – Nuuk. The case study has been conducted in cooperation with the Home Rule Authorities of Greenland.     

An assessment of advanced transport telematics evaluation procedures

This paper reviews and critically assesses procedures which have been adopted to evaluate Advanced Transport Telematics (ATT) projects. The importance of such a review at this juncture stems from the changing position of ATT in transport planning. ATT is no longer simply a field for experimentation, where technical feasibility and user acceptance are dominant concerns. Rather it is a potential mainstream contributor to the functioning of road transport systems. For this reason, ATT project appraisal needs to be developed to the same form, level of sophistication and consistency as the appraisal of conventional transport infrastructure investment. Based on the review set out here, we argue that appropriate methods have not yet been established which, in turn, poses a number of challenging questions, since current socio‐economic evaluation procedures are not directly suited to either measuring or evaluating many of the impacts which ATT schemes are implemented to achieve.     

Economic appraisal of European transport projects: The state-of-the-art revisited

Substantial investment has been made at national and European level in transport infrastructure over the past 50 years and is likely to continue in the future. The need to appraise transport projects in economic and social terms has developed alongside this in both scope and complexity. The state-of-the-art in the economic appraisal of transport projects is reviewed, progress is assessed and future challenges are identified. The review addresses the general framework, treatment of major impacts, presentation of outputs and issues such as uncertainty. It draws on national practice in Western European countries, which varies substantially reflecting a range of cultural and economic differences. Some points of commonality exist and the principle of monetizing direct transport impacts is generally accepted. Progress has been made towards the measurement of environmental impacts, but the assessment of the wider impacts remains under-developed. Increased sophistication and complexity has brought increasing data and presentation requirements, where computerized decision support methods have potential. Many challenges exist for the future of appraisal and the review is concluded with a discussion of some key issues. At the heart of these is the continuing debate over the relative roles of national and European government in decision-making and resource allocation.     

Examining transport futures with scenario analysis and MCA

Climate change is a global problem and across the world the transport sector is finding it difficult to break projected increases in carbon dioxide (CO₂) emissions; there are very few contexts where deep reductions in transport CO₂ emissions are being made. A number of research studies are now examining the potential for future lower CO₂ emissions in the transport sector. This paper develops this work to consider some of the wider sustainability impacts (economic, social and local environmental) as well as the lower CO₂ transport impacts of different policy trajectories. Hence the central argument made is for an integrated approach to transport policy making over the longer term - incorporating scenario analysis and multi-criteria assessment (MCA) - to help assess likely progress against a range of objectives.The analysis is based on work carried out in Oxfordshire, UK. Different packages of measures are selected and two scenarios developed which satisfy lower CO₂ aspirations, one of which also provides wider positive sustainability impacts. A simulation model has been produced to help explore the strategic policy choices and tensions evident for decision-makers involved in local transport planning. The paper argues for a ‘strategic conversation’ (Van der Heijden, 1996) at the sub-regional and city level, based upon future scenario analysis and MCA, discussing the priorities for intervention. Such an approach will help us examine the scale of change and trade-offs required in moving towards sustainable transport futures.     

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.     

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.     

Substance precedes methodology: on cost–benefit analysis and equity

While distributive aspects have been a topic of discussion in relation to cost–benefit analysis (CBA), little systematic thought has been given in the CBA literature to the focus of such an equity analysis in evaluating transport projects. The goal of the paper is to provide an overview of the various directions an equity analysis, carried out within the context of a social cost–benefit analysis, could take. The paper starts from the widely-shared definition of distributive justice: the morally proper distribution of goods and bads over members of society. Following this definition, carrying out an equity analysis requires that decisions are made about: (1) the benefits and costs that are distributed through a transport project; (2) the members of society between whom benefits and costs are distributed; and (3) the distributive principle that determines whether a particular distribution is fair. Much of the discussions about cost–benefit analysis and equity do not address these questions in any systematic way. The paper aims to provide a framework. Three sets of benefits and costs are identified as a possible focus of an equity analysis: (1) net benefits; (2) mobility-enhancing benefits; and (3) individual benefits and costs. For each set, a discussion follows regarding the way in which members of societies could be divided into meaningful groups, as well as the possible yardstick for judging whether a certain distribution is fair. While the paper acknowledges that the choice between the three sets is ultimately a political decision, it ends with a set of arguments that suggest that the equity analysis of transport projects should focus first and foremost on the mobility-enhancing benefits generated by such projects.     

The digital revolution and worthwhile use of travel time: implications for appraisal and forecasting

Savings in travel time and more specifically their monetary value typically constitute the main benefit to justify major investment in transport schemes. However, worthwhile use of travel time is an increasingly prominent phenomenon of the digital age. Accordingly, questions are increasingly being asked regarding whether values of time used by countries around the world based on their appraisal approaches are too high. This paper offers the most comprehensive examination of our theoretical and empirical understandings of international appraisal approaches and how they account for worthwhile use of travel time. It combines the economics perspective with wider social science insight and reaches the conclusion that past revolutions in transport that have made longer and quicker journeys possible are now joined by a digital revolution that is reducing the disutility of travel time. This revolution offers potential economic benefit that comes at a fraction of the cost of major investments in transport that are predicated on saving travel time. The paper highlights the challenges faced in both current and indeed potential alternative future appraisal approaches. Such challenges are rooted in the difficulty of measuring time use and productivity with sufficient accuracy and over time to credibly account for how travel time factors into the economic outcomes from social and working practices in the knowledge economy. There is a need for further research to: establish how improvements in the opportunities for and the quality of worthwhile use of travel time impact on the valuation of travel time savings for non-business travel; improve our understanding of how productive use of time impacts on the valuation of time savings for business travellers; and estimate how these factors have impacted on the demand for different modes of travel.     

Why Cost Benefit Analysis is perceived as a problematic tool for assessment of transport plans: A process perspective

Academic discussions on Cost Benefit Analysis (CBA) as an appraisal instrument for integrated land use and transportation plans tend to focus on its technical aspects. However, many issues of CBA also arise from process related matters, especially when assessing integrated plans. Using an inductive research design, we explored how these process related issues play out in Dutch planning practices. In two applied research techniques, focus group sessions and open in depth interviews, we focused on process related issues as perceived by CBA participants ranging from plan makers to CBA testers. This article presents the different perceptions of issues in CBA processes. Through these collected perspectives, we found that these issues are multi-layered and present a number of fundamental dilemmas. After relating our empirical data to theory, we conclude that the biggest challenge lies in decreasing the level of mistrust and communication deficits revealed between plan owners and CBA calculators and their respective frames of thinking when assessing complex integrated land use and transportation plans.     

Evaluating transport infrastructure decisions under uncertainty

This study uses a hybrid approach, combining cost–benefit analysis (CBA), multiple criteria decision analysis, and Dempster–Shafer Theory, to evaluate transport infrastructure decisions. This approach not only retains the advantages of CBA, but it also facilitates the incorporation of incomplete information into the evaluation process. A particular advantage of this hybrid approach is that it can synthesize evaluation results into an easily understood unit, namely utility. A case study of Taiwan's Tamsui-Taipei Riverside Highway Project is used to illustrate the evaluation method. The evaluation results show that, whereas government officials and city council members support the highway project, academic researchers oppose it. Overall, the decision group tends to positively approve this transport infrastructure investment. These results also reflect the actual situation in Taiwan as stakeholders grapple with the issues arising from the proposed Tamsui-Taipei Riverside Highway Project.     

A new composite decision support framework for strategic and sustainable transport appraisals

This paper concerns the development of a new decision support framework for the appraisal of transport infrastructure projects. In such appraisals there will often be a need for including both conventional transport impacts as well as criteria of a more strategic and/or sustainable character. The proposed framework is based on the use of cost-benefit analysis featuring feasibility risk assessment in combination with multi-criteria decision analysis and is supported by the concept of decision conferencing. The framework is applied for a transport related case study dealing with the complex decision problem of determining the most attractive alternative for a new fixed link between Denmark and Sweden – the so-called HH-connection. Applying the framework to the case study made it possible to address the decision problem from an economic, a strategic, and a sustainable point of view simultaneously. The outcome of the case study demonstrates the decision making framework as a valuable decision support system (DSS), and it is concluded that appraisals of transport projects can be effectively supported by the use of the DSS. Finally, perspectives of the future modelling work are given.     

Attitudes towards the role of Cost–Benefit Analysis in the decision-making process for spatial-infrastructure projects: A Dutch case study

This paper provides a systematic overview of the attitudes of key actors in the Dutch Cost–Benefit Analysis (CBA) practice towards the role of CBA in the decision-making process for spatial-infrastructure projects. The main aim of this paper is to scrutinize the extent to which there is agreement among these Dutch actors in regard to the role of the CBA in the decision-making process. A secondary goal is to provide possible explanations for agreements and controversies among key actors in the Dutch CBA practice. In this study two research methods are combined to study the key actors’ attitudes. Firstly, 86 key actors (e.g. consultants, scientists, policy makers) were interviewed in-depth. Secondly, 74 of them completed a written questionnaire. The most important conclusion of this paper is that in the Dutch CBA practice there is agreement that CBA must have a role in the appraisal process of spatial-infrastructure projects. However, there is a lot of controversy among economists and spatial planners in the Dutch CBA practice concerning the value that is and should be assigned to CBA in the decision-making process. Economists predominantly believe that not enough value is assigned to the CBA in the decision-making process, whereas spatial planners predominantly think that too much value is assigned to the CBA. Both economists and spatial planners believe that this controversy is problematic as it results in debates about the pros and cons of CBA instead of the pros and cons of the spatial-infrastructure projects. This paper analyzes some solutions for this controversy.     

Characterisation of and reflections on the synergy of bicycles and public transport

The bicycle is often understood as a disjointed ‘feeder’ mode that provides access to public transport. We argue that combined use of the bicycle and public transport should be understood in a broader perspective, especially where bicycles link to higher speed and higher capacity public transport, such as the train. Cycling and public transport can have a symbiotic relationship forming a hybrid, distinct transport mode, which should be reflected in transport planning. The bicycle is as a way to soften the rigid nature of public transport and thus accommodate diverse individual travel needs and situations. Public transport can be seen as a means to dramatically extend cycling’s speed and spatial reach. We combine a system perspective with conceptual analysis to explore how, why and when this reconsideration is important. We use the Netherlands as illustrative case because of the relative maturity of its bicycle–train connections. The case shows that the synergy between rather opposite yet highly complementary aspects, high speed of the train, high accessibility of the bicycle and flexibility in combining both sub-modes, are the fundamental characteristics to understand the functioning of this system in a wider spatial context. In our conclusion we propose a research agenda, to further explore the relevance of this system for land-use and transport planning and distil wider implications for the international debate.     

A review of guidelines for including wider economic impacts in transport appraisal

In this paper we examine how 23 industrialised countries treat wider economic impacts (WEIs) in transport appraisals. We identify 12 different types of impacts based on these countries’ appraisal guidelines. Agglomeration impacts and Production changes in imperfect markets are the most widely accepted, being recognised by 14 and 10 countries, respectively. However, about half of the impacts are mentioned by only one country, and few recommend including the impacts directly in cost–benefit analyses. Several countries provide provisos or criteria that must be met before WEIs can be assessed in the first place. We found method recommendations for quantifying WEIs in 10 countries. However, with the exception of the UK Department for Transport’s (DfT) methodological framework, there is very little international consensus on the choice of appropriate methods. Our findings thus supplement and reinforce the conclusions from the Norwegian Official Report of the Hagen Committee [NOU 2012:16. (2012). Samfunnsøkonomiske analyser. Oslo: Departementenes servicesenter] that there is currently no established consensus on the magnitude and relevance of WEIs, or on how and which of these impacts should be taken into account in transport appraisals. Recommendations for further research and appraisal practices are provided.     

Impacts of Transport Infrastructure on Productivity and Economic Growth: Recent Advances and Research Challenges

ABSTRACT

The paper provides an update of the survey focusing on estimating the contribution of transport infrastructure to productivity and economic growth. The central questions addressed are possible reasons behind the conflicting results reported in the literature on the elasticity of economic output with respect to transport infrastructure investment. After providing a systematic review of recent empirical studies on the effects of transport infrastructure on productivity and economic growth, the paper notes that controversial results can be attributed to ten causes (grouped into three categories for distinguishing): (1) related to different contexts: research period, geographical scales, and country's capability in enabling economic development; (2) related to different phenomena that are being measured: different economic sectors, different types of transport infrastructure, and different quality levels of transport infrastructure; and (3) related to distinct ways of measuring a similar phenomenon: measures used to describe the dependent variable and explanatory variable, functional specification, and estimation method of the econometric model. Strong network externalities of transport infrastructure may result in nonlinearity of the relationship between transport infrastructure and economic growth. Moreover, the absence of spatial concerns in infrastructure's impacts is another important source of inconclusive results. Finally, building on recent literature, the paper has discussed policy implications and identified several research avenues for further research.     

Long-term impacts of transport infrastructure networks on land-use change: an international review of empirical studies

Improvements in geographical information systems, the wider availability of high-resolution digital data and more sophisticated econometric techniques have all contributed to increasing academic interest and activity in long-term impacts of transport infrastructure networks (TINs) on land use (LU). This paper provides a systematic review of recent empirical evidence from the USA, Europe and East Asia, classified regarding the type of transport infrastructure (road or rail), LU indicator (land cover, population or employment density, development type) and outcome (significance, relationship’s direction) as well as influential exogenous factors. Proximity to the rail network is generally associated with population growth (particularly soon after the development of railway infrastructure), conversion to residential uses and the development of higher residential densities. Meanwhile, proximity to the road network is frequently associated with increases in employment densities as well as the conversion of land to a variety of urban uses including commercial and industrial development. Compared with road infrastructure, the impact of rail infrastructure is often less significant for land cover or population and employment density change. The extent of TINs’ impact on LU over time can be explained by the saturation in TIN-related accessibility and LU development.     

Transport integration of Slovenia with the European Union

Today, the extended transport infrastructure along with the communications and information technologies are to a large extent the generator of integration processes all over Europe. Novelties in this area have brought about important changes in the production conditions, distribution and consumption, which exert influence on the changing of economic structure, including similar changes in social, cultural and political relations. In the future, the social and economic development of Slovenia will depend on proportionate development of regions and on the embodiment of Slovenia in a wider European space. The transport infrastructure of Slovenia, along with its transport system, should be integrated in the European transport system in such a way that the developmental interest of Slovenia is fully highlighted and included to an optimum extent in the course of Slovenia's integration to the EU.