The New Guideline to Assess Road Investment Projects



The New Guideline to Assess Road Investment Projects

Authors

ORUS J-P, SETRA, France

Description

The French Ministry of transport published on 20th October 1998 a new guideline to assess the road investment projects in inter-city areas from an economic point of view. This guideline is a transportation planning method implemented to optimise the choic

Abstract

The French Ministry of transport published on 20th October 1998 a new guideline to assess the road investment projects in inter-city areas from an economic point of view. This guideline is a transportation planning method implemented to optimise the choice of investment.

With regard to the previous guideline, this one proposes undertaking the economic assessment on two different topics:

- an appraisal to effects in monetary terms

- an appraisal of effects that cannot be valued in monetary terms.

To determine the effects in moentary terms, a cost benefit analysis is implemented. But the orginality of this guideline is that the economuc consequences on other modes of transport are estimated especially when a motorway is exected to compete with a railway line. Furthermore, some environmental effects are assessed in monetary terms, particularly the impact of road projects on noise, air pollution and green house effect.

However, the above approach does not include the spatial distribution of the economic effects. Therefore, an appraisal of the consequences of the projects on the regions is carried out. This non-monetary approach attempts to estimate the iimpact of the project on employment during construction and operation. Moreover, the effects of the project changes of accessibility are calculated for each area newly served. The indicator used enables estimisation of the change of market size on companies generated by a new road.

An approach is also proposed to assess the consequences of the new road on the intensification of competition between companies due to accessbility gains which bring markets closer.

Publisher

Association for European Transport