Demonstrating the Benefits of Highway Economic Requirement System – State Version: A Case Study

Highway Economic Requirement System – State Version (HERS-ST) is a highway investment performance computer model which determines the impact of alternative highway investment levels and program structures on highway conditions, performance, and agency, user, and external costs. HERS-ST develops an economically optimal program of investment based on benefit-cost analysis. Assuming that future savings are possible if agencies follow the optimal program recommended by the HERS-ST, this paper estimates the value of these improvements. The research analyzes the benefits derived from HERS-ST implementation using HERS-ST itself. The analysis compares a program based on a HERS-ST strategy to that based on a worst first strategy using Highway Performance Monitoring System data from the State of New Mexico. The analysis estimates that average pavement condition based on HERS-ST is 0.30 points, on a scale of zero to five higher than that based on a worst first strategy over 10 years. Also, HERS-ST identifies benefits of $2.0 billion over the benefit-cost analysis period and benefits of $359 million over 10 years. If the cost for HERS-ST implementation is lower than those benefits over the periods, investment in HERS-ST implementation can be justified. Through this analysis, the benefits of HERS-ST implementation are distinguished in terms of efficacy, efficiency and effectiveness (3Es). The paper also briefly reviews these concepts and methods for evaluation of the 3Es. This research demonstrates an assessment process of the possible benefits of HERS-ST implementation, which will reinforce the value of using HERS-ST in agencies to support asset management.

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• Authors:
  • Mizusawa, Daisuke
  • McNeil, Sue
• Conference:
  • Seventh International Conference on Managing Pavement Assets
  • Location: Calgary Alberta, Canada
  • Date: 2008-6-23 to 2008-6-28
• Publication Date: 2008

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; References; Tables;
• Pagination: 10p
• Monograph Title: 7th International Conference on Managing Pavement Assets, June 23-28, 2008, Calgary, Alberta, Canada: "Preserving What We Have, Investing in the Future, and Finding the Balance"

Subject/Index Terms

• TRT Terms: Asset management; Benefit cost analysis; Case studies; Computer models; Highway maintenance; Investments
• Identifier Terms: Highway Economic Requirements System; Highway Performance Monitoring System
• Geographic Terms: New Mexico
• Subject Areas: Administration and Management; Economics; Highways; Maintenance and Preservation; Pavements; I10: Economics and Administration; I60: Maintenance;

Filing Info

• Accession Number: 01447692
• Record Type: Publication
• Files: TRIS
• Created Date: Sep 28 2012 3:30PM