ECONOMIC QUESTIONS (GREAT BRITAIN)

THE COMPETITION BETWEEN VARIOUS PUBLIC PROJECTS FOR LIMITED INVESTMENT FUNDS, IN BOTH DEVELOPED AND DEVELOPING ECONOMIES, EMPHASIZES THE NEED TO IDENTIFY AND QUANTIFY THE BENEFITS OF IMPROVED ROAD SYSTEMS. THREE LINES OF APPROACH IN DETERMINING THE ALLOCATION OF INVESTMENT TO ROADS ARE OUTLINED: (1) THE ESTABLISHMENT OF A PRICING SYSTEM FOR ROADS TO SIMULATE THE PRICE SYSTEM IN THE PRIVATE SECTOR, (2) AN ANALYSIS OF CONSUMER SURPLUS, BASED ON THE ELASTICITY OF DEMAND FOR ROAD PROJECTS, AND (3) AN EXTENSION OF DATA ANALYSIS TO SOCIAL SURPLUS, EMBRACING EXPECTED BENEFITS IN COSTS GOING BEYOND THE SCOPE OF THE ORDINARY MARKET. BENEFITS ARE RELATED TO COSTS, BUT THE INTEREST RATE USED IN SUCH CALCULATIONS SHOULD BE REALISTIC. THE OPPORTUNITY COST OF COMPETING ROAD AND OTHER PROJECTS IS ONE WHICH CAN BE USED, ALTHOUGH A DISCOUNTED RATE WHICH EQUATES PRESENT VALUES OF COST AND BENEFITS, HAS ADVANTAGES AS A DETERMINENT AS INVESTMENT PRIORITY. AN APPROACH CAPABLE OF BEING APPLIED AT RELATIVELY LOW ADMINISTRATIVE LEVELS IS ALSO EXAMINED. A PROGRAM OF ROAD IMPROVEMENTS WAS DESIGNED TO SPUR INDUSTRIAL REHABILITATION IN THE NORTHEAST OF ENGLAND. TRAFFIC VOLUMES AND INADEQUACIES OF PRESENT ROADS WERE EXAMINED, AND SIMPLE COST/BENEFIT ANALYSIS WAS USED TO INDICATE WHERE ACCEPTABLE RATES OF RETURN WERE LIKELY. RESEARCH INTO PROBLEMS OF NETWORK PLANNING AND INVESTMENT PROGRAMMING WAS CONDUCTED AT UNIVERSITIES AND GOVERNMENT ESTABLISHMENTS IN BRITAIN. AN IMPORTANT VARIABLE FACTOR AFFECTING TRAFFIC COSTS WHICH HAS BEEN GIVEN ATTENTION IN SPEED. PREDICTION FORMULI RELATING VEHICLE SPEEDS TO ROAD CHARACTERISTICS ARE QUOTED BUT THERE IS AN UNDOUBTED NEED FOR FURTHER RESEARCH IN THIS FIELD, PARTICULARLY IN RELATION TO CONGESTED ROADS. CHANGES IN VEHICLE LICENSING, VEHICLE METERING, LAND USE CONTROL AND THE PROVISION OF PARKING SPACE ARE AMONG FACTORS WHICH HAVE BEEN CLOSELY EXAMINED. VOLUME OF TRAFFIC IS THE MAIN CONSIDERATION IN ROAD DESIGN, AND IN BRITAIN STANDARD SPECIFICATIONS ARE SET FOR SIX DIFFERENT TRAFFIC INTENSITIES. IT IS CONCLUDED THAT THE PLANNING OF A ROAD NETWORK IS ESSENTIAL TOWARDS PROVIDING THE BEST OVERALL COST/BENEFIT RELATIONSHIP TO THE COMMUNITY. /AUTHOR/

• Supplemental Notes:
  • Vii-7, 32 PP, 3 FIG, 6 TAB
• Authors:
  • Durie, A C
• Publication Date: 1967

Media Info

• Serial:
  • Perm Intl Assoc Road Congresses Proc
  • Publisher: Xiiith Congress, Tokyo

Subject/Index Terms

• TRT Terms: Benefit cost analysis; Businesses; Cost allocation; Data analysis; Economic analysis; Economic development; Highway planning; Highways; Improvements; Investments; Land use planning; Licenses; Mathematical analysis; Motor vehicles; Networks; Operating costs; Parking; Planning; Rate of return; Roads; Traffic congestion; Traffic density; Traffic speed; Traffic volume
• Uncontrolled Terms: Land use controls
• Old TRIS Terms: Allocations; Roadnet
• Subject Areas: Economics; Highways; Planning and Forecasting; Safety and Human Factors; Society;

Filing Info

• Accession Number: 00201544
• Record Type: Publication
• Files: TRIS
• Created Date: Nov 4 1994 12:00AM