COMPARATIVE ECONOMIC ANALYSIS OF ASPHALT AND CONCRETE PAVEMENTS (DISCUSSION AND CLOSURE)

A comparative economic analysis of alternative asphalt and concrete pavement design is presented in this paper. Both a life-cycle cost comparison and an economic impact analysis were conducted. In this study, using specific designs for a hypothetical rural Florida project and 1983 Florida estimated costs, the asphalt pavement design was the clear and unambiguous economic choice at 5, 7, and 10 percent discount rates and for both 30- and 40-year project lives. A sensitivity analysis of energy price impacts was conducted by assigning asphalt material prices a 2.6 percent differential inflation rate. The asphalt pavement design was again the economic choice in all comparisons. A comparative life-cycle cost analysis should be conducted routinely. It has great potential for resolving ambiguous public debate as well as maximizing the economic efficiency of public expenditures. An economic impact analysis, which consisted of an assessment of the earnings and employment effects of each design, was accomplished by applying an input-output model, RIMS II, to industry-specific input costs. The study found an employment benefit in the use of concrete; however, the interpretation of this advantage must be left to the decision maker. Further research is recommended. In thier discussion, Roy and Ray argue that some of the assumptions on which the analysis was based were subjective, thus calling into question the results. The authors, in closure, detail their assumptions in order to demonstrate that they are reasonable, well documented and empirically valid.

• Record URL:
  http://onlinepubs.trb.org/Onlinepubs/trr/1984/984/984-005.pdf
• Summary URL:
  https://scholar.google.com/scholar_lookup?title=COMPARATIVE+ECONOMIC+ANALYSIS+OF+ASPHALT+AND+CONCRETE+PAVEMENTS+(DISCUSSION+AND+CLOSURE)&author=R.+Sandler&author=E.+Denham&author=J.+Trickey&publication_year=1984
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• Supplemental Notes:
  • Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved. Publication of this paper sponsored by Committee on Application of Economic Analysis to Transportation Problems.
• Authors:
  • Sandler, Ralph D
  • Denham, Edward T
  • Trickey, Jack
• Discussers:
  • Roy, Robert
  • Ray, Gordon K
• Publication Date: 1984

Media Info

• Media Type: Print
• Features: Figures; References; Tables;
• Pagination: pp 29-39
• Monograph Title: Economic analysis of transportation investments and economic development
• Serial:
  • Transportation Research Record
  • Issue Number: 984
  • Publisher: Transportation Research Board
  • ISSN: 0361-1981

Subject/Index Terms

• TRT Terms: Alternatives analysis; Asphalt pavements; Concrete pavements; Economic analysis; Employment; Life cycle analysis; Life cycle costing
• Subject Areas: Economics; Finance; Highways; Society; I10: Economics and Administration;

Filing Info

• Accession Number: 00399868
• Record Type: Publication
• ISBN: 0309037689
• Files: TRIS, TRB
• Created Date: Feb 28 1986 12:00AM