ROAD INVESTMENT ANALYSIS - TOWARDS A BROADER VIEW

PRESENT METHODS OF ECONOMIC COMPARISON OF ROAD PROJECTS SOMETIMES APPEAR TO JUSTIFY SCHEMES FOR WHICH FUNDS CANNOT BE MADE AVAILABLE. THIS ANOMALY IS RESOLVED BY WIDENING THE ANALYSIS TO CONSIDER OTHER USES FOR THE AVAILABLE FUNDS, PRIORITIES AND ECONOMIC PROGRAMMING. THIS REQUIRES A MARGINAL RETURN CONCEPT COMMON IN ECONOMICS. FURTHER BENEFICIAL BY-PRODUCTS OF THIS APPROACH INCLUDE A MORE RATIONAL APPROACH TO A ROAD NEEDS SURVEY AND A CAPACITY CRITERION LEADING TO THE OPTIMUM ROAD NETWORK GIVEN THE ECONOMIC ENVIRONMENT. THE WIDENING SCOPE OF THE ANALYSIS REQUIRES COMPARISON BETWEEN NATIONAL PRODUCTION BENEFITS FROM DEVELOPMENTAL ROADS AND ROAD USER SAVINGS ON ROADS IN DEVELOPED AREAS. A MORE RATIONAL EXAMINATION OF SAVINGS TO FUTURE TRAFFIC IS MADE USING ANOTHER ECONOMIC CONCEPT - THE SUPPLY AND DEMAND SCHEDULES FOR TRAVEL AND TRANSPORT. THIS APPROACH ALSO EXPLAINS SOME OF THE PHENOMENA OF INDUCED TRAFFIC ON IMPROVED FACILITIES. /AUTHOR/

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  • Accession Number: 00201341
  • Record Type: Publication
  • Files: TRIS, ATRI
  • Created Date: May 5 1970 12:00AM