Using STEAM for Benefit-Cost Analysis of Transportation Alternatives

1998 ◽  
Vol 1649 (1) ◽  
pp. 63-71 ◽  
Author(s):  
Patrick Decorla-Souza ◽  
Harry Cohen ◽  
Dan Haling ◽  
James Hunt
Keyword(s):  
Cost Analysis ◽  
Travel Demand ◽  
Demand Management ◽  
Decision Makers ◽  
Pollutant Emissions ◽  
Travel Demand Management ◽  
Benefit Cost Analysis ◽  
Wide Range ◽  
Surface Transportation ◽  
Benefit Cost

The Intermodal Surface Transportation Efficiency Act emphasizes assessment of multimodal alternatives and demand management strategies. This emphasis has increased the need for planners to provide good comparative information to decision makers with regard to proposed alternative transportation solutions. Benefit-cost analysis is a useful tool to compare the economic worth of alternatives and evaluate tradeoffs between economic benefits and nonmonetizable social and environmental impacts. FHWA has developed a new tool for benefit-cost analysis called the Surface Transportation Efficiency Analysis Model (STEAM). The software is based on the principles of economic analysis and allows development of monetized impact estimates for a wide range of transportation investments and policies, including major capital projects, pricing, and travel demand management. Impact measures are monetized to the extent feasible, and quantitative estimates of natural resource usage (e.g., energy consumption) and environmental impact (e.g., pollutant emissions) are also provided. Decision makers can then use net monetary benefits (or costs) of alternatives as computed by STEAM to evaluate tradeoffs against nonmonetizable impacts. The software was applied in evaluation of corridor alternatives for the Central Freeway corridor in the hypothetical urban area of Any City, U.S.A.

Accounting for the Distribution of Benefits and Costs in Benefit–Cost Analysis

2020 ◽  
pp. 1-21
Author(s):  
James K. Hammitt
Keyword(s):  
Cost Analysis ◽  
Decision Makers ◽  
Policy Choice ◽  
Alternative Evaluation ◽  
Benefit Cost Analysis ◽  
Transfer Programs ◽  
Net Benefits ◽  
Benefit Cost ◽  
Benefits And Costs

Abstract Benefit–cost analysis (BCA) is often viewed as measuring the efficiency of a policy independent of the distribution of its consequences. The role of distributional effects on policy choice is disputed; either: (a) the policy that maximizes net benefits should be selected and distributional concerns should be addressed through other measures, such as tax and transfer programs or (b) BCA should be supplemented with distributional analysis and decision-makers should weigh efficiency and distribution in policy choice. The separation of efficiency and distribution is misleading. The measure of efficiency depends on the numéraire chosen for the analysis, whether monetary values or some other good (unless individuals have the same rates of substitution between them). The choice of numéraire is not neutral; it can affect the ranking of policies by calculated net benefits. Alternative evaluation methods, such as BCA using a different numéraire, weighted BCA, or a social welfare function (SWF), may better integrate concerns about distribution and efficiency. The most appropriate numéraire, distributional weights, or SWFs cannot be measured or statistically estimated; it is a normative choice.

scholarly journals Prioritization of Low-Volume Road Projects Considering Project Cost and Network Accessibility: An Incremental Benefit–Cost Analysis Framework

2021 ◽  
Vol 13 (23) ◽  
pp. 13434
Author(s):  
Wubeshet Woldemariam
Keyword(s):  
Cost Analysis ◽  
Decision Makers ◽  
Performance Criteria ◽  
Project Cost ◽  
Benefit Cost Analysis ◽  
Incremental Benefit ◽  
Study Results ◽  
Road Projects ◽  
Low Volume ◽  
Benefit Cost

Due to insufficient funds to implement all candidate road infrastructure projects, there is a need to efficiently utilize available funds and select candidate projects that maximize performance criteria decision-makers. This paper proposes an incremental benefit–cost analysis (IBCA) framework to prioritize low-volume road (LVR) projects that maximize road network accessibility considering project cost and network accessibility requirements. The study results show that the accessibility benefits of road projects depend not only on their cost requirements but also on their spatial locations in the network that affect their network-level accessibility benefits per unit cost of investment. Additionally, the number of disrupted LVR links cannot fully determine the degree of change in network accessibility. The framework enables decision-makers to consider project cost requirements and the accessibility-related impacts of LVR projects, maximize economic benefits, and ensure the sustainability of the LVR network performance.

Benefit-Cost Analysis of Economic Resilience Actions

2017 ◽  
Author(s):  
Adam Rose
Keyword(s):  
Cost Analysis ◽  
Decision Makers ◽  
Economic Resilience ◽  
Public And Private ◽  
Benefit Cost Analysis ◽  
Comprehensive Benefit ◽  
Sector Decision ◽  
Public And Private Sector ◽  
Static Form ◽  
Benefit Cost

Economic resilience, in its static form, refers to utilizing remaining resources efficiently to maintain functionality of a household, business, industry, or entire economy after a disaster strikes, and, in its dynamic form, to effectively investing in repair and reconstruction to promote accelerated recovery. As such, economic resilience is oriented to implementing various post-disaster actions (tactics) to reduce business interruption (BI), in contrast to pre-disaster actions such as mitigation that are primarily oriented to preventing property damage. A number of static resilience tactics have been shown to be effective (e.g., conserving scarce inputs, finding substitutes from within and from outside the region, using inventories, and relocating activity to branch plants/offices or other sites). Efforts to measure the effectiveness of the various tactics are relatively new and aim to translate these estimates into dollar benefits, which can be juxtaposed to estimates of dollar costs of implementing the tactics. A comprehensive benefit-cost analysis can assist public- and private sector decision makers in determining the best set of resilience tactics to form an overall resilience strategy.

Probabilistic Benefit-Cost Analysis for Earthquake Damage Mitigation: Evaluating Measures for Apartment Houses in Turkey

2004 ◽  
Vol 20 (1) ◽  
pp. 171-203 ◽  
Author(s):  
Andrew W. Smyth ◽  
Gülay Altay ◽  
George Deodatis ◽  
Mustafa Erdik ◽  
Guillermo Franco ◽  
...  
Keyword(s):  
Cost Analysis ◽  
Seismic Hazard ◽  
Fragility Curves ◽  
Earthquake Damage ◽  
Mitigation Measures ◽  
Benefit Cost Analysis ◽  
Damage Mitigation ◽  
Time Horizons ◽  
Wide Range ◽  
Benefit Cost

In the wake of the 1999 earthquake destruction in Turkey, the urgent need has arisen to evaluate the benefits of loss mitigation measures that could be undertaken to strengthen the existing housing stock. In this study, a benefit-cost analysis methodology is introduced for the comparative evaluation of several seismic retrofitting measures applied to a representative apartment building located in Istanbul. The analysis is performed probabilistically through the development of fragility curves of the structure in its different retrofitted configurations. By incorporating the probabilistic seismic hazard for the region, expected direct losses can be estimated for arbitrary time horizons. By establishing realistic cost estimates of the retrofitting schemes and costs of direct losses, one can then estimate the net present value of the various retrofitting measures. The analysis in this work implies that, even when considering only direct losses, all of the retrofitting measures considered are desirable for all but the very shortest time horizons. This conclusion is valid for a wide range of estimates regarding costs of mitigation, discount rates, number of fatalities, and cost of human life. The general methodology developed here for a single building can be extended to an entire region by incorporating additional structural types, soil types, retrofitting measures, more precise space- and time-dependent seismic hazard estimates, etc. It is hoped that this work can serve as a benchmark for more realistic and systematic benefit-cost analyses for earthquake damage mitigation.

scholarly journals An Effective Cache Algorithm for Heterogeneous Storage Systems

2013 ◽  
Vol 2013 ◽  
pp. 1-9 ◽  
Author(s):  
Yong Li ◽  
Dan Feng ◽  
Zhan Shi
Keyword(s):  
Cost Analysis ◽  
State Of The Art ◽  
Storage Systems ◽  
Performance Degradation ◽  
Performance Characteristics ◽  
Storage Devices ◽  
Benefit Cost Analysis ◽  
Wide Range ◽  
Benefit Cost ◽  
Cache Block

Modern storage environment is commonly composed of heterogeneous storage devices. However, traditional cache algorithms exhibit performance degradation in heterogeneous storage systems because they were not designed to work with the diverse performance characteristics. In this paper, we present a new cache algorithm called HCM for heterogeneous storage systems. The HCM algorithm partitions the cache among the disks and adopts an effective scheme to balance the work across the disks. Furthermore, it applies benefit-cost analysis to choose the best allocation of cache block to improve the performance. Conducting simulations with a variety of traces and a wide range of cache size, our experiments show that HCM significantly outperforms the existing state-of-the-art storage-aware cache algorithms.

Selection and Evaluation of Travel Demand Management Measures

1997 ◽  
Vol 1598 (1) ◽  
pp. 49-60 ◽  
Author(s):  
Christopher J. Taylor ◽  
Linda K. Nozick ◽  
Arnim H. Meyburg
Keyword(s):  
New York ◽  
Travel Demand ◽  
Demand Management ◽  
Evaluation Tool ◽  
Travel Demand Management ◽  
Additional Information ◽  
Management Measures ◽  
Transportation Modes ◽  
Surface Transportation

Travel demand management (TDM) measures are designed to alter the attractiveness of competing travel modes to prompt individuals to carpool or use transit instead of driving alone. Determining the best set of measures for a given area and estimating the effectiveness of the selected measures involve understanding the characteristics of the available transportation modes and of the area's travelers. The process of developing the best, comprehensive set of TDM measures for the Syracuse, New York, area and predicting the effect of those measures are described. Based on a case study of the best TDM measures and their effect in Syracuse, a procedure is presented that can be used for similar studies elsewhere. An effort is made to use data that would be available for similar studies. The evaluation tool is one that would be available in any other area. The main source of information about the travel patterns was census journey-to-work information. Additional information about employment, transit service, roadway congestion, and so forth was derived from planning reports developed by the local metropolitan planning organization. Similar reports should be available in other areas because of the strict planning provisions of the Intermodal Surface Transportation Efficiency Act of 1991. The major conclusion was that it is indeed possible to select an appropriate set of TDM measures for a given study area while relying on only limited, readily available data and tools.

scholarly journals Dynamic Benefit-Cost Analysis for Uncertain Futures

2019 ◽  
Vol 10 (2) ◽  
pp. 206-225 ◽  
Author(s):  
Susan E. Dudley ◽  
Daniel R. Pérez ◽  
Brian F. Mannix ◽  
Christopher Carrigan
Keyword(s):  
Cost Analysis ◽  
Network Effects ◽  
Global Scale ◽  
Decision Makers ◽  
Essential Information ◽  
Benefit Cost Analysis ◽  
Trade Offs ◽  
Market Solutions ◽  
Benefit Cost ◽  
Policy Problems

Abstract“Uncertain futures” refers to a set of policy problems that possess some combination of the following characteristics: (i) they potentially cause irreversible changes; (ii) they are widespread, so that policy responses may make sense only on a global scale; (iii) network effects are difficult to understand and may amplify (or moderate) consequences; (iv) time horizons are long; and (v) the likelihood of catastrophic outcomes is unknown or even unknowable. These characteristics tend to make uncertain futures intractable to market solutions because property rights are not clearly defined and essential information is unavailable. These same factors also pose challenges for benefit-cost analysis (BCA) and other traditional decision analysis tools. The diverse policy decisions confronting decision-makers today demand “dynamic BCA,” analytic frameworks that incorporate uncertainties and trade-offs across policy areas, recognizing that: perceptions of risks can be uninformed, misinformed, or inaccurate; risk characterization can suffer from ambiguity; and experts’ tendency to focus on one risk at a time may blind policymakers to important trade-offs. Dynamic BCA – which recognizes trade-offs, anticipates the need to learn from experience, and encourages learning – is essential for lowering the likelihoods and mitigating the consequences of uncertain futures while encouraging economic growth, reducing fragility, and increasing resilience.

VP36 Benefit Cost Analysis Of Electronic Claims Processing System In Ghana

2018 ◽  
Vol 34 (S1) ◽  
pp. 168-169
Author(s):  
Rebecca Addo ◽  
Justice Nonvignon ◽  
Huihui Wang
Keyword(s):  
Health Insurance ◽  
Cost Analysis ◽  
Health System ◽  
Decision Makers ◽  
Total Cost ◽  
Benefit Cost Analysis ◽  
Provider Payment ◽  
Study Population ◽  
Benefit Cost ◽  
Electronic Processing

Introduction:Since the inception of the Ghana National Health Insurance Scheme (NHIS), it has been pursuing a number of provider payment mechanisms that could not only control the continuous escalating costs of claims payout, but also facilitate the claims processing time. In lieu of this, electronic processing of claims (E-claims) was introduced in 2013 as part of the World Bank supported Health Insurance project that sought to facilitate the financial and operational management of the NHIS. It was piloted in 29 health facilities up to March 2014. They reported cost savings made by the NHIS using E-claims, creating interest in scaling it up. However, the comparative effectiveness and cost effectiveness of E-claims to the health system compared to manual claims processing is unknown. Therefore, to provide decision makers with the appropriate information to choose between manual and E-claims processing, this study sought to evaluate the cost-benefit of E-claims.Methods:A benefit-cost analysis was used to evaluate the efficiency of E-claims from the perspective of the health system. Health providers and the purchaser (NHIS claims processing center) were the study population. Resource use and costs were obtained from the study population. The volumes and values of claims reimbursed and the claims rejection rate were used as the benefits of claims processing. The incremental benefit-cost ratio (IBCR) was estimated for the provider, purchaser and the entire health system. Analysis was conducted in Microsoft Excel.Results:The total cost per claim for providers were USD 1,177.04 and USD 1,240.65 for E-claims and paper claims respectively. The total cost per E-claims and paper claims for the purchaser were 592.17 and 502.19 respectively. Total benefit per E-claim and paper claim processing for the providers were USD 8,562.90 and USD 8,888.37 respectively while that for the purchaser was USD 11,037.62 and USD 8,737.60 respectively. Processing claims electronically led to incremental gains by both providers and purchasers. Providers gained additional USD 2008.51 while the purchaser gained USD 2,300.02. The IBCR was estimated at −19.75, 25.56 and 5.10 for all providers, purchaser and both providers and purchaser of the health system respectively. Thus the IBCR was less than 1for the providers and more than 1 for purchaser and both purchaser and providers.Conclusions:The electronic processing of claims is more efficient compared to manual processing in the Ghana NHIS. This provides decision makers with evidence for scaling it up to all the facilities in Ghana.

Measuring Nontraditional Benefits and Costs of Inland Navigation

2005 ◽  
Vol 1909 (1) ◽  
pp. 47-53
Author(s):  
Anne Sudar
Keyword(s):  
Cost Analysis ◽  
Standard Procedure ◽  
Air Emissions ◽  
Development Projects ◽  
Water Resource Development ◽  
Benefit Cost Analysis ◽  
Inland Navigation ◽  
Wide Range ◽  
Benefit Cost ◽  
Benefits And Costs

The evaluation of navigation projects has evolved from a standard procedure done strictly by engineers and economists to a process that involves a wide range of stakeholders. Not surprisingly, these diverse stakeholders have different views regarding what should count in the benefit–cost analysis of water resource development projects and how the effects are to be economically valued. The methodologies that are described have been used to measure and monetize some of the externalities of inland navigation, the benefits and costs of which have not traditionally been included in benefit–cost ratios. The emphasis is the benefits (lower air emissions) associated with freight transport via water compared with those of other modes, particularly truck.

Sign in / Sign up

Export Citation Format

Share Document