Economic Analysis in the Work with ?rules of Roads"



Economic Analysis in the Work with ?rules of Roads"

Authors

S Bendsen, COWI, DK

Description

COWI has assisted the Danish Road Directorate in developing a method and a tool to enable consistent economic analyses of changes in rules of roads. The tool can be used on both small and large scale projects.

Abstract

Economic analysis is widely used in the road sector as decision tool of large investments and reinvestments, where the purpose of the analyses is to ensure the best use of the resources.

The design of roads is based on a set of ?rules of roads", which describes many underlying crucial condition for the standard choices behind each road project. It is therefore important for the Danish Road Directorate that also the rules of roads are based on economic choices. And that new rules and changes in existing rules are carried out with focus on the different economic impacts of making the changes.
Economic analysis is not a new discipline in the work with rules of roads. However previously there has not been a systematic way of making the analy-ses and setting up descriptions and conditions.

COWI has assisted the Danish Road Directorate in developing a method and a tool to enable consistent analyses of changes in rules of roads. The tool is designed to
- Be easy to use - also for non-economists
- Be used on both small and large scale projects within different technical disciplines
- Adjustable requirements for the analysis depending on the specific project
The purpose of the new developed tool is to make it easier to make consistent economic analyses in the work with road rules.

The tool is designed to make the analyses in different steps where the level of ambition is adjusted to each specific situation. This is done through a screening of effects and a following categorising into three different level of analyse. The most simple analyse is just to give a technical description of the change, the more complex is to analyse the changes for the owner of the infrastructure, and the most complex is to make a more or less full economic analysis.

Publisher

Association for European Transport