Collection of Cycle Concepts 2012.pdf - Fietsberaad

COST-BENEFIT AND TRAFFIC MODELS
COST-BENEFIT IN GENERAL
Basically, what society wants is maximum value
for public money, which is why economic
considerations and cost-benefit analysis
have become an integral part of the political
prioritization process in a number of areas,
including the infrastructure. For many years
cost-benefit analyses have been mandatory when
assessing the profitability of major infrastructure
projects, just as medical technology and third
world development projects are subject to costbenefit
analysis in order to determine the project’s
value to society.
In a cost-benefit analysis a project’s advantages
(benefits) are compared with its disadvantages
(costs), and if the benefits outweigh the costs
the project is of benefit to society. Every relevant
type of advantage and disadvantage is assigned a
monetary value if possible.
Costs are primarily incurred in the initial phases
(establishment phase), whereas benefits are
recurrent as long as the infrastructure is in
use (operational phase). Thus, the choice of
time horizon in the calculations is of primary
importance. Typically, a payback period of 5-8
years on cycling infrastructure is considered
satisfactory.
DTU Transport, Technical University of Denmark,
published Transportøkonomiske Enhedspriser
(the former Nøgletalskatalog) for the Ministry of
Transport, showing a number of assumptions and
parameters for calculating socioeconomic costs
and benefits. Unit prices include assumptions
regarding economic growth, car ownership and
transport costs.
Cycling is good business for society
used to compare the different transport modes’
costs and benefits.
Unit costs consist of two parts: a) what the
individual making the transport mode decision
considers significant and b) the impact that
decision has on the rest of society. In economic
terms these are referred to as internalized and
externalized costs. Internalized costs include
value of time, vehicle attrition, petrol (for cars)
and health, while externalized costs include
expenses in connection with traffic accidents,
hospital costs, negative environmental impact,
congestion, etc.
When all these factors are added up, each cycled
kilometer costs society DKK 0.60, whereas each
kilometer driven by car costs DKK 3.74. The
table below shows the costs of driving vs. cycling
calculated for different parameters.
COST-BENEFIT IN RELATION TO
CYCLING INFRASTRUCTURE
AND OTHER CYCLING
FACILITIES
Cost-benefit analysis can be used to assess the
value to society of cycle projects. If bicycle traffic
is to get equal treatment with other transport
modes it is crucial to have a solid planning basis
to help decision makers prioritize transport
spending.
SYSTEMIC COSTS AND BENEFITS
Recreational
value
Time
costs
Transport
costs
Accident
costs
Branding
value
A preliminary set of unit values methodology
for cost-benefit analyses of cycling initiatives
was established for a project in the City of
Copenhagen. The unit values can be used to
perform cycling specific cost-benefit analyses,
including new infrastructure construction,
renovation of existing infrastructure (e.g.
accident reduction measures), and campaign
implementation. In addition, unit values can be
Discomfort
costs
Health
benefits
Air pollution
costs
Insecurity
costs
Value for
urban space
Socioeconomic effects of cycling.