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Guide to Calculating Mobility Management Benefits Victoria Transport Policy Institute

Values can also be adjusted to better reflect user impacts. For example, conventional analysis often assumes that mode shifts increase travel time costs, which is appropriate if such alternatives really are slower and shifts results from negative incentives, such as higher vehicle user fees or driving restrictions. However, alternative modes are sometimes as fast as driving, and people sometimes prefer to spend time walking, cycling or riding public transit rather than driving (that is, they have lower unit travel time costs). Travel shifted from driving to alternative modes in response to positive incentives (parking cash out or improved cycling facilities) must benefit users overall, even if travel times increase, further increasing mode shift benefits.

The “rule of half” (described on the next page) can help evaluate consumer welfare impacts of price changes. This states that the consumer surplus impacts of travel behavior resulting from a price change are worth, on average, half the price change. For example, if a $2 daily parking fee increase induces 1,000 trips to shift from driving to transit, the consumer surplus loss is $2 x 1,000 x ½ = $1,000 per day. Similarly, if a $2 per day transit subsidy has the same travel effect, the consumer surplus gain is worth $1,000 per day. It is more difficult to quantify the consumer surplus impacts of a TDM program which includes various positive and negative incentives (such as increased parking fees, parking cash out, a rideshare program and bicycle facility improvements), but in general, the more positive incentives provided, the more likely participants benefit directly from their travel changes.

Operating Subsidies

$0.00

$0.00

($0.13)

$0.00

$0.00

$0.00

External Accident

$0.00

$0.04

$0.03

$0.03

$0.03

$0.04

External Parking

$0.00

$0.12

$0.12

$0.11

$0.12

$0.12

Congestion

$0.15

$0.17

$0.16

$0.16

$0.17

$0.17

Road Facilities

$0.00

$0.02

$0.01

$0.02

$0.02

$0.02

Roadway Land Value

$0.00

$0.02

$0.02

$0.02

$0.02

$0.02

Municipal Services

$0.00

$0.02

$0.01

$0.01

$0.01

$0.01

Equity & Option Value

$0.00

$0.01

$0.01

$0.01

$0.01

$0.01

Air Pollution

$0.01

$0.06

$0.06

$0.06

$0.06

$0.06

Noise

$0.00

$0.01

$0.01

$0.01

$0.01

$0.01

Resource Consumption

$0.00

$0.03

$0.02

$0.03

$0.03

$0.03

Barrier Effect

$0.01

$0.02

$0.01

$0.01

$0.02

$0.02

Land Use Impacts

$0.00

$0.07

$0.07

$0.07

$0.07

$0.00

Water Pollution

$0.00

$0.01

$0.01

$0.01

$0.01

$0.01

Waste Disposal

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Totals $0.17 $0.60 $0.41 $0.55 $0.58 $0.52

This table shows estimated external monetized benefits (i.e. benefits to somebody other than the user) of six types of mode shifts under urban peak conditions.

Table 20 summarizes external mode shift benefits. A community should be willing to spend up to this amount on average to reduce travel demand, given “typical” costs.

Table 20

External Benefits - 1996 U.S. Cents per Mile (Litman 2009)

Bicycle

Walk

Tele-

Commute

Off-Peak

Diesel

Shift

Rideshare

Bus

26

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