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Introduction

Transportation Demand Management (TDM) refers to the various strategies adopted to change travel behavior to increase the transportation system efficiency and also to achieve reduction in congestion, energy and fuel conservation, savings in parking and road costs, while focusing on the safety and mobility of the road users.

The 2006 Congestion Mitigation and Air Quality Improvement (CMAQ) Improvement Program Interim Guidance provides explicit guidelines to program effectiveness assessment and benchmarking by calling for a quantification of benefits, as well as

disbenefits resulting evaluation[1]. More strategies relative to

from emission public agencies their potential

reduction strategies for project selection and are attempting to measure the value of TDM benefits and costs in comparison to other

transportation assess if the

solutions commonly employed to address strategies have met performance-based

capacity needs. They seek to planning standards or goals

established funds. For

for the strategies and whether or not it was a example, the Washington State Commute Trip

cost-effective expenditure of Reduction program revealed

that

“the

program’s

cost

to

the

state

was

54¢

per

reduced

trip

(or

$136

for

the

year)[2].”

These findings were used in some urban areas to argue support employer TDM programs and provide incentives

for increased public funding to for the use of alternative modes.

To date, no standardized guidance exists to quantify the costs and benefits of TDM strategies that takes into account the range of benefits and costs that accrue from TDM programs.

The objective of this project is to develop a standardized methodology for calculating the costs and benefits of TDM for comparative assessment and public decision making. To achieve this goal, this report conceptualizes a new approach that builds on existing techniques and tools to produce a model that would save agencies time and money, would provide a high level of reliability in impacts results, while generating results that could be compared among regions and across projects.

A methodology that combines academic and practitioner experiences within a theoretical framework that truly captures what is at the core of TDM evaluation is herein detailed. That is, an approach that models consumers’ price responsiveness to diverse transportation options by embracing the most relevant trade-offs faced under income, modal price and availability constraints.

This report is divided into four main sections. Section I deals with systematic TDM evaluation methods. The analysis focuses on evaluation approaches that have a formal theoretical and empirical structure that result in tools for program benefits estimation. Each of the methods’ advantages and constraints are discussed to highlight key elements for evaluation and inclusion in the model development phase.

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