THE PROFITABILITY OF WEATHER CONTROLLED SPEED LIMITS ON TWO-LANE ROAD. CASE MAIN ROAD 7 (E18) BETWEEN KOTKA -PYHTAEAE

MUUTTUVIEN NOPEUSRAJOITUSTEN KANNATTAVUUDEN TARKASTELU KAKSIKAISTAISELLA TIELLA. ESIMERKKITAPAUS VALTATIE 7 (E18) KOTKA-PYHTAA

This report deals with the economic evaluation of variable speed limits on the Kotka-Pyhtaeae (Main Road 7/E18) weather-controlled road. In addition to the problems existing in the traditional cost-benefit analysis used, alternative methods of assessment were also discussed. The first part of the report analyses the systems profitability. The methodology used was based on previous studies where the weather-controlled motorway, Kotka - Hamina, was used to study the profitability of variable speed limits. As a result of this analysis, it can be concluded that the economic profitability is not very high. The calculated savings are reduced a lot by increases in travel time. The greatest benefit of the system is its calculated savings due to a loweR accident ratio. In the second part of this report a sensitivity analysis was carried out to study the profitability of wireless communication as an alternative way for data transfer. These modifications to cost-benefit analysis concerning the changes in variables (monetary values) or alternative technical solutions (communication) will give an idea of how calculated profits would change. The changes in variables should be significant (through not realistic) in order to get profitability at a higher level. On the other hand, increases in traffic volumes and reduced travel speeds can lower accident risk which will increase savings. The end of this report dealt slightly with risk-adjusted discounting, an approach adopted from the Capital Asset Pricing Model (CAPM). This approach did not notably alter the investment calculations, but it did raise the cost-benefit ratio.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/07883722
• Corporate Authors:

  TIELAITOS (FINNISH NATIONAL ROAD ADMINISTRATION)

  OPASTINSILTA 12 A
  HELSINKI,   Finland  FIN-00520
• Authors:
  • Nokkala, M
  • SCHIROKOFF, A
• Publication Date: 2001

Language

• Finnish

Media Info

• Pagination: 53p+a p.
• Serial:
  • TIELAITOKSEN SELVITYKSIA
  • Volume: 52/2001
  • Issue Number: TIEH 3200698.
  • Publisher: TIELAITOS (FINNISH NATIONAL ROAD ADMINISTRATION)
  • ISSN: 0788-3722

Subject/Index Terms

• TRT Terms: Benefit cost analysis; Calculation; Externalities; Intelligent transportation systems; Investments; Profitability; Speed limits; Telecommunications; Traffic control; Travel time; Trip length; Variable message signs; Weather
• Geographic Terms: Finland
• ITRD Terms: 6464: Calculation; 226: Cost benefit analysis; 237: Economic efficiency; 8035: Finland; 8735: Intelligent transport system; 227: Investment; 697: Journey time; 215: Social cost; 624: Speed limit; 9117: Telecommunication; 654: Traffic control; 574: Variable message sign; 2545: Weather
• Subject Areas: Finance; Operations and Traffic Management;

Filing Info

• Accession Number: 00942960
• Record Type: Publication
• Source Agency: VTT Technical Research Centre of Finland
• Files: ITRD
• Created Date: Jun 11 2003 12:00AM