Benefit-cost analysis for labor intensive transportation systems

Labor-intensive systems such as bikeways and pedestrian ways suffer in transportation planning in part because traditional benefit-cost analysis focuses on narrow, private transportation savings (e.g., reducing vehicle and time costs).Planners need benefit-cost frameworks which capture the community-wide effects of such innovative transportation systems — reduction in air pollution, less congestion, and increases in exercise and outdoor recreation. This study discusses practical methods for planners to include such categories in their analyses and applies these methods to two case studies. The analysis yields benefit-cost ratios which are much higher than those found in most public projects — suggesting negative returns to marginal automobiles in congested areas such as university campuses. The paper concludes with some suggested bikeway planning guidelines that emerge from expanded benefit-cost analysis.