Cato Institute
Policy Analysis
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Plans should
of congestion? Some trade offs, such as peo-
planners might add different forms of land-
ple's time and energy, are easy because both
use regulation such as urban-growth bound-
be transparent,
can be valued, but others, such as fatalities,
aries, incentives for infill development, form-
that is, it should
will require more subjective judgment.
based zoning codes, and other rules designed
be clear to readers
Based on the tradeoffs, planners could
to change people's travel preferences.
design a preferred alternative that attempts to
For each project, planners should esti-
how planners
provide the best-possible balance of outputs
mate the cost to taxpayers, the cost to every-
developed their
for the fixed amount of funds that are avail-
one else, and the benefits in terms of the cri-
able. The alternative should also specify where
teria developed in the first step: for example,
preferred
it would make sense to spend more money if
the effects of the project on fatality rates,
alternative.
more became available through, say, a local tax
congestion, pollution, and energy consump-
increase or increased federal grants.
tion. Capital costs should be annualized by
After the plan is adopted, planners should
amortizing them over the life of each partic-
monitor to insure that the goals are being
ular project so that both benefits and costs
achieved. If possible, monitoring should
can be compared on an annual basis. Each of
include feedback mechanisms so that the plan
the benefits can then be divided into each
can self-correct if any of its assumptions prove
project's annual dollar cost to get cost per life
wrong. For example, if a particular project
saved; cost per hour of congestion relief; cost
turns out to cost much more than planners
per ton of air pollution relief; and cost per
originally projected, the plan could provide for
BTU of energy saved. The projects can then
the substitution of alternative projects that
be ranked using those criteria.
would be more cost effective.
For the actual alternatives, many planners
Each of these steps should include con-
might develop a transit-emphasis alternative,
sultation with the public to insure first, that
a highway-emphasis alternative, and so forth.
planners do not neglect any important crite-
But that would be unnecessarily polarizing. A
ria, potential transportation projects, or
better way is to build alternatives around
alternatives and second, that the tradeoffs
each of the major criteria: a maximum-safety
planners make in developing the preferred
alternative, a minimum-congestion alterna-
alternative meet public approval. Moreover,
tive, and so forth. The maximum-safety alter-
the plan should be transparent; that is, it
native would include all of the projects with
should be clear to any reader how planners
the highest safety rankings that the region
made each step along the way toward devel-
can afford with available funds. Thus, the
opment of their preferred alternative.
region might have four alternatives--safety,
In sum, a rational transportation plan
congestion, pollution, and energy--each of
should include the following:
which cost the same but which produce dif-
ferent levels of outputs and meet the criteria
ˇ Quantitative
in different ways.
output criteria by which
At that point, planners could compare the
the plan can be judged;
ˇ
projects and criteria to see which are comple-
State-of-the-art forecasts of travel needs
mentary and which conflict. For example, traf-
and travel behavior;
ˇ
fic signal coordination can improve safety and
Sensitivity analyses for questionable
reduce congestion, pollution, and energy use.
assumptions;
ˇ
But building a new highway might reduce
A list of all possible transportation pro-
congestion at a cost of consuming energy dur-
jects with projections of costs and bene-
ing construction. Planners could first ask: it is
fits, with the benefits firmly associated
possible to redesign the project so that it pro-
with each major criterion;
ˇ
duces a net energy savings? If not, then plan-
Project rankings in terms of cost per
ners have to consider tradeoffs: how much
each criteria-related benefit;
ˇ
energy are we willing to spend to save an hour
Several alternatives, consisting of vari-
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