ESTIMATING HIGHWAY BENEFITS IN UNDERDEVELOPED COUNTRIES

THE IMPORTANCE OF ESTIMATING BENEFITS FROM HIGHWAY INVESTMENTS IN UNDERVELOPED COUNTRIES, AS WELL AS THE UNITED STATES, ARE REVIEWED. A SUBSTANTIAL LITERATURE HAS BEEN DEVELOPED ON METHODS OF ESTIMATING BENEFITS OF INVESTMENTS MADE IN HIGHWAY IMPROVEMENTS. THE KEY CRITERION GENERALLY RECOMMENDED IS THE REDUCTION IN THE COST OF TRANSPORTATION WHICH THE PROPOSED PROJECT WOULD PERMIT. ALTHOUGH ADDITIONAL CRITERIA SUCH AS ACCIDENT REDUCTION AND INCREASED COMFORT AND CONVENIENCE ARE ALSO CONSIDERED, THE KEY CRITERION REMAINS COST REDUCTION, WIDELY DEFINED TO INCLUDE TIME AND OTHER SAVINGS FOR BOTH PASSENGERS AND GOODS. THE AUTHORS MAINTAIN THE FOLLOWING WHEN EXAMINING THE RELATIONSHIP BETWEEN COST REDUCTION AND PRODUCTION INCREASES ATTRIBUTABLE TO A HIGHWAY' /1/ PRESENT METHODS USED TO CALCULATE TRANSPORT COST REDUCTIONS ARE UNSOUND CONCEPTUALLY BECAUSE THEY ARE BASED ON A MISUNDERSTANDING OF THE NATURE OF THE DEMAND CURVE FOR TRANSPORT, AND THEY DO NOT RECOGNIZE THE IMPORTANCE OF THE PRESENCE OF A COMPLEX INDEX NUMBER PROBLEM, /2/ TRANSPORT COST REDUCTIONS ARE NOT AN ADEQUATE MEASURE OF THE INCREASE IN PRODUCTION WHICH CAN OCCUR, ESPECIALLY IN UNDERDEVELOPED COUNTRIES, AND /3/ A PREFERABLE METHOD OF ESTIMATING BENEFITS IN UNDERDEVELOPED COUNTRIES IN INSTANCES WHERE THE HIGHWAY HAS A FAR-REACHING IMPACT ON A SPECIFIC REGION WOULD BE TO ESTIMATE DIRECTLY THE LIKELY INCREASES IN PRODUCTION WHICH WOULD OCCUR.

Media Info

  • Media Type: Print
  • Features: Figures; References; Tables;
  • Pagination: pp 29-43
  • Monograph Title: Transportation and economic development
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00201143
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Nov 21 1994 12:00AM