METHODS OF EVALUATING ALTERNATIVE ROAD PROJECTS

THE METHODS OF ANALYSIS USED TO EVALUATE MUTUALLY EXCLUSIVE INVESTMENT DECISIONS ARE DISCUSSED. THE PAPER IS BASED ON PART OF A CHAPTER OF A TEXT, SHORTLY TO BE PUBLISHED, WHICH EMPHASIZES THE EVALUATION OF ALTERNATIVE HIGHWAY AND TRAFFIC ENGINEERING DESIGNS. THE METHODS DESCRIBED AND COMPARED ARE WELL KNOWN, OFTEN USED (BOTH CORRECTLY AND INCORRECTLY) AND OFTEN MISUNDERSTOOD, PARTICULARLY BY ENGINEERS AND SOMETIMES ECONOMISTS. THE PURPOSE IS TO COMPARE THESE TECHNIQUES AND TO ILLUSTRATE THE DIFFICULTIES AND DANGERS INVOLVED IN THEIR USE. A FEW COMMENTS ON INTEREST RATES AND RISK ARE INCLUDED, BUT SEVERAL ASPECTS OF THIS IMPORTANT PART OF THE PROBLEM ARE NOT MENTIONED. THE COMPARISON OF FOUR METHODS FOR DETERMINING THE MOST ECONOMIC OF SEVERAL POSSIBLE ALTERNATIVES IN THE ABOVE ARTICLE IS NOT VERY WELL FORMULATED, SINCE NONE OF THESE METHODS TAKES INTO ACCOUNT ALL THE TERMS NECESSARY FOR REACHING A CORRECT SOLUTION. THEREFORE NONE OF THEM, UNLESS IT IS SUITABLY CORRECTED AND UNLESS THERE ARE NO SPECIAL CIRCUMSTANCES, ENABLES A COMPLETELY RATIONAL DECISION TO BE REACHED. THUS UNLESS THE ROAD ENGINEER IS SUPPLIED WITH FURTHER FACTS ON WHICH TO BASE HIS JUDGMENT, HE CANNOT DECIDE WHICH IS THE BEST SOLUTION. INSTEAD HE MUST CONFINE HIMSELF TO PROVIDING THE ADMINISTRATION WITH THE FACTS WHICH HELP THEM TO MAKE THE DECISION. IT IS THEREFORE EXTREMELY DANGEROUS TO ADVISE ROAD ENGINEERS TO MAKE USE OF ANY ONE OF THE METHODS EXAMINED, AT ANY RATE IN IMPORTANT CASES. /AUTHOR/

  • Availability:
  • Supplemental Notes:
    • Vol 1, pp 28-45
  • Corporate Authors:

    London School of Economics and Political Science

    Houghton Street, Aldwych
    London WC2A 2AE,   England 
  • Authors:
    • Wohl, M
    • Martin, B V
  • Publication Date: 1967-1

Media Info

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Filing Info

  • Accession Number: 00201368
  • Record Type: Publication
  • Source Agency: Traffic Systems Reviews & Abstracts
  • Files: TRIS
  • Created Date: May 5 1970 12:00AM