Expanded Economic Appraisal Of Transport Projects

Todd Litman
Victoria Transport Policy Institute

Common Planning Biases

Undercounting non-motorized travel and provides little information on demand for alternative modes. Reflects mobility- rather than accessibility-based planning and so fails to consider other factors that affect accessibility. Evaluates transport system performance based primarily on motorized travel conditions, with little consideration to other modes. It highlights automobile travel level-of-service but provides no comparable ratings for other modes.

Overlook or underestimate generated traffic (additional peak-period traffic) and induced travel (net increases in total vehicle travel in an area) impacts.
Only quantifies (measures) and monetizes (measures in monetary units) a limited set of impacts.

Methods used to monetize congestion often exaggerate this cost.

Fails to account for social equity objectives. The evaluation process is mechanistic and difficult to understand. People who use results often have little idea of their omissions, biases and uncertainties.

More Comprehensive Planning

Reform Comprehensive transport data Accessibility-based transport planning Modeling improvements Comprehensive impact analysis More accurate congestion costing Multi-modal performance evaluation Generated and induced travel impact analysis Equity impact analysis Consider diverse options Implementation Methods Collect more comprehensive data on travel activity and demands, particularly for non-motorized travel Evaluate transport problems and solutions based on overall accessibility, not just mobility Improve modeling to better reflect how policy and planning changes will affect travel activity Consider all significant economic, social and environmental impacts Use best practices when calculating congestion costs and congestion reduction benefits Evaluate transport system performance using multi-modal indicators Take into account generated and induced travel impacts when evaluating roadway expansion projects Evaluate social equity impacts Consider a diverse range of transport system improvement options, including improvements to alternative modes, demand management strategies and smart growth development policies Describe any planning process omissions and biases to decisionmakers and report results as ranges rather than point values Inform and involve people who may be affected in the planning process, including the process used to evaluate options

Identify possible omissions and biases in evaluation Engage stakeholders

Understanding Travel Demands

Travel Demands: The amount and type of transport people will choose under specific conditions:
Demographic and economic trends
Transport options (quality of walking, cycling, public transport, automobile, etc.) Price (road, parking, fuel, transit fares, etc.) Land use development patterns

System integration (ease of transferring between modes)

Information and marketing about transport options.

Current Assessment Practices

Generally Considered
Congestion impacts. Vehicle operating costs. Per-mile crash impacts. Per-mile pollution emissions.

Often Overlooked
Parking costs. Total consumer costs. Downstream congestion. Crash, energy & pollution impacts of changes in mileage. Land use impacts. Impacts on mobility options for non-drivers/equity impacts. Changes in active transport and related health impacts.

Comparing Benefits
Planning Objectives Vehicle Travel Impacts
Reduce traffic congestion
Improved travel experience Roadway cost savings Parking cost savings Consumer cost savings Improve mobility options Improve traffic safety Energy conservation Pollution reduction Land use objectives Public fitness & health

Expand Roadways Increased VMT

Efficient and Alt. Fuel Vehicles Increased VMT

Improve Transport Options & Incentives Reduced VMT

Multi-Modal Level-Of-Service
Mode
Walking

Level of Service Factors

Sidewalk, crosswalks, paths, vehicle traffic speeds, land use conditions, safety Bike paths and lanes, street riding conditions, bike parking Service coverage, frequency, speed (relative to driving), vehicle and waiting area comfort, user information, price, safety and security Speed, congestion delay, roadway conditions, parking convenience, safety

Cycling

Public transit

Automobile

Economic Indicators
Goals
Economic productivity

Objectives
Transport system efficiency. Transport system integration. Maximize accessibility. Efficient pricing and incentives.

Performance Indicators
Per capita GDP Portion of budgets devoted to transport. Per capita congestion delay. Efficient pricing (road, parking, insurance, fuel, etc).

Economic development More and better employment and business activity Minimize energy costs, particularly petroleum imports. All residents can afford access to basic (essential) services and activities.

Efficient prioritization of facilities

Access to education and employment opportunities. Support for local industries. Per capita transport energy consumption

Energy efficiency

Per capita use of imported fuels.

Availability and quality of affordable modes (walking, cycling, ridesharing and public transport). Portion of low-income households that spend more than 20% of budgets on transport. Performance audit results. Service delivery unit costs compared with peers. Service quality.

Affordability

Efficient transport operations

Efficient operations and asset management maximizes cost efficiency.

Social Indicators
Goals
Equity / fairness

Objectives
Transport system accommodates all users, including those with disabilities, low incomes, and other constraints. Minimize risk of crashes and assaults, and support physical fitness.

Performance Indicators
Transport system diversity. Portion of destinations accessible by people with disabilities and low incomes.

Safety, security and health

Per capita traffic casualty (injury and death) rates. Traveler assault (crime) rates. Human exposure to harmful pollutants.

Community development

Cultural heritage preservation

Help create inclusive and attractive communities. Support community cohesion. Respect and protect cultural heritage. Support cultural activities.

Portion of travel by walking and cycling. Land use mix.

Walkability and bikability Quality of road and street environments. Preservation of cultural resources and traditions.

Responsiveness to traditional communities.

Environmental Indicators
Goals
Climate stability

Objectives
Reduce global warming emissions Mitigate climate change impacts Reduce air pollution emissions Reduce exposure to harmful pollutants. Minimize traffic noise exposure Minimize water pollution. Minimize impervious surface area. Minimize transport facility land use. Encourage more compact development. Preserve high quality habitat.

Performance Indicators
Per capita emissions of global air pollutants (CO2, CFCs, CH4, etc.).

Prevent air pollution

Per capita emissions of local air pollutants (PM, VOCs, NOx, CO, etc.). Air quality standards and management plans. Traffic noise levels Per capita fuel consumption. Management of used oil, leaks and stormwater. Per capita impervious surface area. Per capita land devoted to transport facilities. Support for smart growth development. Policies to protect high value farmlands and habitat.

Prevent noise pollution Protect water quality and minimize hydrological damages. Openspace and biodiversity protection

Governance Indicators
Goals Integrated, comprehensive and inclusive planning Objectives Clearly defined planning process. Integrated and comprehensive analysis. Strong citizen engagement. Least-cost planning and funding (the most overall beneficial solutions are selected and funded). Performance Indicators Clearly defined goals, objectives and indicators. Availability of planning information and documents. Portion of population engaged in planning decisions. Range of objectives, impacts and options considered. Transport funds can be spent on alternative modes and demand management if most beneficial overall.

Research Program
Analysis tools exist for predicting the impacts and assessing the costs and benefits of specific transport policies and planning decisions, but they require adjustments to reflect developed country conditions (travel mix, travel conditions, incomes, land values, exposure rates, etc.)

Defining Data Quality

Accuracy. The methods used to collect statistics must be suitably accurate. Transparency. The methods used to collect statistics must be accessible for review. Comprehensiveness. An adequate range of statistics should be collected to allow various types of analysis. Frequency. Data should be collected regularly. Consistency. The range of statistics, definitions and collection methodologies should be consistent. Availability. Statistics should be available to users.

Transport-Related Data Programs

Australian Transportation Data Action Network (www.nss.gov.au/transportmetadata) coordinates a national effort to improve the accessibility and quality of Australian transportation data. CitiesACT (www.citiesact.org), an online database providing access to transport, energy and emission data for Asian cities and countries, maintained by the Clean Air Initiative for Asian Cities (CAI-Asia). Global Transport Intelligence Initiative (www.slocat.net/key-slocat-prog/466) is collaboration by international organizations involved in the collection, analysis and dissemination of transport data. Todd Litman (2011) Well Measured: Developing Indicators for Comprehensive and Sustainable Transport Planning, VTPI (www.vtpi.org/wellmeas.pdf ) Anthony May, Susan Grant-Muller, Greg Marsden and Sotirios Thanos (2008), Improving The Collection And Monitoring Of Urban Travel Data: An International Review, #08-1244, TRB Annual Meeting; summary at http://144.171.11.39/view.aspx?id=847932. Ongoing Travel Survey, New Zealand Ministry of Transport (www.transport.govt.nz/ongoing-travel-survey-index). Sustainable Transportation Indicators: A Recommended Program To Define A Standard Set of Indicators For Sustainable Transportation Planning ,TRB Sustainable Transportation Indicators Subcommittee (www.vtpi.org/sustain/sti.pdf.) How We Travel: A Sustainable National Program for Travel Data, Special Report 304, Transportation Research Board (http://onlinepubs.trb.org/onlinepubs/sr/sr304.pdf ). Annual Bulletin Of Transport Statistics For Europe And North America, Economic Commission For Europe (www.unece.org/trans/main/wp6/pdfdocs/ABTS2008.pdf ).

Well Measured: Developing Indicators for Sustainable and Livable Transport Planning Sustainability and Livability: Summary of Definitions, Goals, Objectives and Performance Indicators Comprehensive Transport Planning Framework Transportation Cost and Benefit Analysis Smart Transport Emission Reductions Online TDM Encyclopedia and more...

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