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Guide to Calculating Mobility Management Benefits Victoria Transport Policy Institute

Consumer Savings Mobility management programs that improve affordable travel options and land use accessibility tend to provide consumer savings, increase transportation affordability, and support equity objectives (VTPI, 2006).

Consumer Cost Savings Subcategories

  • Vehicle operating cost savings (fuel, oil, tire wear).

  • Reduced mileage-based depreciation (vehicle wear-and-tear, increasing maintenance, repair and


  • Vehicle ownership cost savings.

  • Housing cost savings (such as reduced residential parking costs).

Mobility management strategies that improve lower cost transport options, such as walking, cycling, ridesharing and public transit, tend to provide the greatest consumer savings. Some strategies, such as parking cash out (allowing commuters the option of choosing cash instead of parking subsidies), Pay-As-You-Drive insurance, and location- efficient development provide direct financial benefits to consumers that drive less than average. Some pricing reforms directly increase consumer costs but their overall impacts depend on how revenues are used and the quality of travel options available.

Table 7

Consumer Cost Savings Effectiveness

Most Effective

Moderate Effects

Least Effective

Negative Impacts

Walking & cycling

Transit oriented



Transit improvements Rideshare programs Carsharing

Telework Commute trip reduction PAYD vehicle insurance Location-efficient development

School and campus transport management

Tourist transport


Taxi service improvements Nonmotorized promotion Flextime HOV priority

Smart growth Marketing programs Carfree planning Traffic calming F r e i g t h t t r a n s p o r


Parking pricing Fuel tax increases Congestion pricing

Overall impacts

depend on how revenues are used and the quality of transport options available.

This table identifies how various mobility management strategies reduce consumer costs.

Conventional transport economic evaluation considers vehicle operating costs, but often overlooks mileage-based depreciation and vehicle ownership costs. Reduced vehicle mileage provides fuel cost savings averaging 10¢ to 20¢ per mile, and reduces mileage- based depreciation that also averages 5¢ to 20¢ per mile. Improved travel options allow some households to reduce vehicle ownership, providing savings that typically average $2,000 to $4,000 annually per vehicle eliminated. Parking cash out and PAYD insurance provide hundreds of dollars in annual financial benefits to people who drive less than average. Specific analysis would help evaluate overall impacts of user charges that reduce other fees and taxes.


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