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.

This quiz assesses the understanding of evaluating project benefits, including the distinction between real and pecuniary effects, and their impact on land values and consumers.