Roads Economic Decision Model (RED) Economic Evaluation of Low Volume Roads
This note presents the Roads Economic Decision Model (RED) that performs an economic evaluation of road investments, and maintenance options, customized to the characteristics of low-volume roads, such as: high uncertainty of the assessment of traf...
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| Format: | Brief |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2001/03/1089586/roads-economic-decision-model-red-economic-evaluation-low-volume-roads http://hdl.handle.net/10986/9820 |
| Summary: | This note presents the Roads Economic
Decision Model (RED) that performs an economic evaluation of
road investments, and maintenance options, customized to the
characteristics of low-volume roads, such as: high
uncertainty of the assessment of traffic, road condition,
and future maintenance of unpaved roads; periods with pass
disruptions; levels of service, and corresponding road user
costs defined not only through roughness; high potential to
influence economic development; and, beneficiaries, other
than motorized road users. The model computes benefits
accruing to normal, generated, and diverted traffic, as a
function of a reduction in vehicle operating, and time
costs, and, adopts the consumer surplus approach, which
measures the benefits of road users, and consumers of
reduced transport costs. RED addresses, among others, the
following additional concerns: reduce input requirements for
low-volume roads; consider the higher uncertainty, related
to input requirements; compute internally the traffic
generated due to decreased transport costs, based on a
defined price elasticity of demand; and, quantify the
economic costs, associated with the days per year when the
passage of vehicles is further disrupted by a highly
deteriorated road condition. Particularly, the model
highlights all input assumptions, and comprehensively
integrates them with sensitivity, switching values, and
stochastic risk analysis. |
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