ECONOMIC QUESTIONS--THE NETHERLANDS

THE CONNECTION BETWEEN CRITERIA BASED ON COST BENEFIT AND THOSE BASED ON THE LEVEL OF SERVICE IS ANALYZED. APPLICATION OF THE BENEFIT-COST RATIO CRITERION WILL LEAD TO THE MAXIMUM NATIONAL WELFARE, BOTH FOR IMMEDIATE AND FUTURE CONSUMPTION. IT IS APPLICABLE TO ANY INVESTMENT PROJECT AND CAN HELP DECIDE AS TO THE TOTAL AMOUNT OF INVESTMENT ON ROAD PROJECTS. THE BENEFIT-COST RATIO CAN LEAD TO DIFFERENT LEVELS OF SERVICE FOR DIFFERENT ROADS. CRITERIA BASED ON LEVEL OF SERVICE CAN BE APPLIED ONLY ON ROAD PROJECTS AND IT WOULD NOT BE POSSIBLE TO WEIGH THESE INVESTMENTS AGAINST OTHER INVESTMENTS. THE RESULTS ARE PRESENTED OF A REGIONAL PRIORITY STUDY IN THE ALLOCATION OF FUNDS FOR ROADS IN THE NETHERLANDS. THE STUDY IS BASED UPON A NUMBER OF HYPOTHESES CONCERNING REGIONAL AND SECTORAL DEVELOPMENTS SUCH AS THE CONTINUATION OF EXISTING TRENDS, INCREASED URBANIZATION, AND DECENTRALIZATION OF ACTIVITIES. A SYSTEM IS PROPOSED FOR THE ALLOCATION OF FUNDS TO REGIONAL AND LOCAL AUTHORITIES ON THE BASIS OF THE ROAD NETWORKS DEVELOPED ACCORDING TO THE FOLLOWING THREE CRITERIA: COSTS OF NEW CONSTRUCTION; MAINTENANCE COSTS OF ROADS FOR WHICH THE SAME CONDITION HOLDS; COSTS TO BE MADE FOR MAJOR REPLACEMENTS WHICH SHOULD BE BASED UPON ESTIMATED LIFETIME OF THE DIFFERENT ELEMENTS OF THE ROADS. THE SYSTEM PROVIDES FOR A COMPLETE BOOKEEPING PROCESS FOR THE WHOLE ROAD SYSTEM. AN ELEMENT LACKING IN THE ANALYSIS IS THE INFLUENCE OF THE ROAD SYSTEM ON THE DISPERSION OF ECONOMIC ACTIVITIES IN THE COUNTRY. IN A DISCUSSION OF THE TAXES ON LORRIES (TRUCKS), IT IS POINTED OUT THAT IT IS ONLY THE USAGE COST CONNECTED WITH THE DETERIORATION OF FOUNDATIONS OF PAVEMENTS, WHICH VARIES DIRECTLY WITH WEIGHT. IT IS NOTED THAT IT IS THE TOTAL WEIGHT PER AXLE THAT MATTERS. WEIGHT ONLY MATTERS INDIRECTLY IN OTHER ELEMENTS OF TARIFF STRUCTURE; THE SPACE A HEAVY VEHICLE OCCUPIES IS GENERALLY MORE IMPORTANT, BUT THIS IS ONLY VALID FOR VEHICLES ON THE ROAD AT THE SAME TIME. GIVEN THE PROPORTION OF PRIVATE CARS AT PEAK HOURS IS HIGHER THAN AVERAGE, IT CANNOT BE ASSUMED AUTOMATICALLY THAT THE CAPACITY COST OR THE CONGESTION COST PER VEHICLE MILE IS LOWER FOR A PRIVATE CAR THAN FOR A LORRY.

  • Supplemental Notes:
    • QUESTION VI-13
  • Authors:
    • Van de Poll, E H
    • Bosma, H
    • KLAASSEN, L H
    • MULDER, E H
    • Ruhl, A
  • Publication Date: 1971

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Filing Info

  • Accession Number: 00202425
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Apr 11 1974 12:00AM