MEASURES OF BENEFIT IN THE EVALUATION OF URBAN TRANSPORT IMPROVEMENTS

Abstract

VARIOUS ALTERNATIVE MEASURES OF USER-BENEFIT APPLICABLE TO THE EVALUATION OF URBAN TRANSPORT SCHEMES ARE DISCUSSED. IT IS ASSUMED THAT BENEFIT CAN BE MEASURED IN TERMS OF REDUCTIONS IN COSTS, WHERE COST IS A GENERALIZED FUNCTION OF FINANCIAL OUTLAY, TIME, COMFORT AND OTHER FACTORS. FOUR METHODS OF ESTIMATING USER-BENEFIT ARE DISCUSSED: THE LONDON TRANSPORTATION STUDY FORMULA, CONSUMERS' SURPLUS, EQUIVALENT INCOME VARIATIONS, AND CARDINAL UTILITY FUNCTIONS. IT IS SHOWN THAT UNDER CERTAIN ASSUMPTIONS THE FIRST THREE MEASURES YIELD THE SAME RESULT. THE IMPORTANCE OF THE NOTION OF CONSTANT MARGINAL UTILITY OF MONEY AND THE DIFFERENCE BETWEEN CARDINAL AND ORDINAL MEASURES OF UTILITY ARE DISCUSSED. /AUTHOR/

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