Induced traffic and economic appraisal

Abstract

Economic appraisal of major roads in the UK is based on a set of standard procedures and conventions. A central assumption has been that the volume and pattern of traffic in any given year is independent of the quality of service offered by the network — the fixed trip matrix assumption. Failing to consider induced traffic can have serious consequences for the accuracy and robustness of the measured traffic benefits from road improvements. Assessment of the wider economic benefits of roads, which is an important political imperative for road investment, is also made more difficult. Two conclusions are reached. Variable trip matrix methods need to be introduced for the appraisal of major road schemes, and scheme appraisal needs to be complemented by a more strategic area-wide approach to evaluation. In responding to its advisory committee (SACTRA), the UK Department of Transport has accepted the first of these conclusions and is cautiously favourable to the second.