Evaluating Project Benefits

Benefits of a Project

• Real benefits are enjoyed by final consumers or contribute to a community's welfare.
• Financial benefits, on the other hand, come at the expense of other individuals or groups.

Impact of Improved Transportation

• Improved transportation accessibility increases land values.
• Consumers bear the costs of improved transportation through increased prices or rents.

Evaluating Pecuniary Effects

• Pecuniary effects should not be included in evaluations unless redistributive impact is a major objective.

Benefits of an Investment

• Can be direct or indirect
• Direct benefits are directly related to the investment's objectives
• Indirect benefits are by-products of the investment

Examples of Direct and Indirect Benefits

• A transit improvement can reduce travel times (direct benefit)
• A transit improvement can increase housing demand (indirect benefit)
• Short-term travel time savings can be realized by other facilities (indirect benefit)

Costs of Alternative Transportation

• Direct costs include:
  • Initial capital costs
  • Operation costs
  • Maintenance costs
  • Rehabilitation costs
• Indirect costs include:
  • Government agency expenses
  • Societal costs like:
    • Pollution
    • Congestion
  • Potential adverse impacts on service viability

Classification of Benefits and Costs

• Benefits and costs can be categorized as internal or external to the study area.

Funding of Urban Transportation Improvements

• Urban transportation improvements are often funded by local municipalities.

Benefits of Urban Transportation Improvements

• The benefits of urban transportation improvements can extend to both short-distance and long-distance travelers.
• It is challenging to determine who will ultimately benefit from these improvements due to the diverse range of users.

Air Quality Improvements

• Air quality improvements in one region can have a positive impact on another region, making it difficult to determine who will benefit from these improvements.