Cost-benefit Analysis for an ITS-solution based on Change in Consumers’ Surplus for the Users

Abstract

The Norwegian Public Roads Administration (NPRA) is establishing a system (AutoPASS Travel Time System) that provides drivers with real-time travel times for some road sections. NPRA wanted to complete a cost-benefit analysis of such a system. The section considered in this study, i.e. Filipstad –Asker, has high traffic density during peak hours, often resulting in considerable delay. SINTEF Transport Research was invited to carry out this analysis, which was completed in January 2013. A user survey collected information on the travelers normal travel time and the delay that would result in a change of travel behavior. The road users were asked to state a critical level of delay causing a change in their behavior, for example stay home, change the time for travel start or change travel route. Traffic delay normally means a reduction in consumers’ surplus for the users of the road. To some extent travel time information allows the users to compensate for the reduction in consumers’ surplus due to traffic delay. The AutoPASS-system collects and delivers continuous data of the real time delay. This information tells us how often the travelers limit for changing travel behavior is exceeded within the period of evaluation. Each traveler has a unique normal travel time and a critical delay that will cause change in travel behavior. To make up for the difference in distance of travel the normal travel time was taken in to consideration. Using the method of consumers’ surplus the benefit from receiving information on travel time can be calculated. Such calculations were performed for one month in the autumn of 2012. The result from the calculations represents the benefit of not loosing time in traffic. The results from the evaluation from the section on E18 in Oslo Norway proved to be higher than the investment which means that the investment in the travel information system was right for society.