For a successful implementation of intelligent transport systems (ITS), technological progresses and innovations are undisputable important. Nevertheless, economic viability may not be forgotten as a prerequisite. Considerable investments for stakeholders (such as public or industry) are needed to equip vehicles, install the necessary infrastructure or to set up traffic management centers. This study enhances the technological perspective on ITS-projects by picking up the topic of economics. In this study, viable business models are acknowledged as a central success factor for the implementation of ITS. The focus, however, lies on the often neglected socio-economic perspective which includes societal costs and benefits. These impacts can be determined with a cost–benefit analysis (CBA). On the basis of a systematic case study, this study provides a profound understanding for the methodology of the CBA and the importance for public-decision making. By means of ITS-projects of the European Framework Programs, the automotive ITS-project sim^TD and the multimodal-related project All Ways Travelling, the significance of CBA-results for ITS-projects is shown. At the same time, the method is critically assessed by showing a number of limitations that can strongly determine the validity of the results, and therefore require a methodological adaption to the needs of ITS-projects.

References

1. 1)
  - 11. Kondo, D., et al: ‘Cost–benefit analysis of cloud computing versus desktop grids’. IEEE Int. Symp. on Parallel & Distributed Processing, Rome, Italy, 2009.
2. 2)
  - 24. Eisenkopf, A., et al: ‘Final report: all ways travelling – to develop and validate a European passenger transport information and booking system across transport modes’ (European Commission: Brussels, 2014).
3. 3)
  - 6. Adelle, C., Hertin, J., Jordan, A.: ‘Sustainable development ‘outside’ the European Union: what role for impact assessment?’, Eur. Environ., 2006, 16, (2), pp. 57–72 (doi: 10.1002/eet.405).
4. 4)
  - 20. eIMPACT: ‘Assessing the impacts of intelligent vehicle safety systems’ (European Commission: Brussels, Belgium, 2008).
5. 5)
  - 9. Priemus, H., Flyvbjerg, B., van Wee, B.: ‘Decision-making on mega-projects: cost–benefit analysis, planning and innovation’ (Edward Elgar Publishing, Cheltenham, UK, 2008).
6. 6)
  - 30. Radaelli, C.M., Meuwese, A.C.M.: ‘Hard questions, hard solutions: proceduralisation through impact assessment in the EU’, West Eur. Polit., 2010, 33, (1), pp. 136–153 (doi: 10.1080/01402380903354189).
7. 7)
  - 29. Kulmala, R., Rämä, P., Sihvola, N.: ‘Safety impacts of cooperative systems’. 21st ICTCT Workshop Proc., Riga, Latvia, 2008.
8. 8)
  - 25. European Commission: Proposal for a directive of the European parliament and of the council amending directive 1999/62/EC on the charging of heavy goods vehicles for the use of certain infrastructure, 2003.
9. 9)
  - 17. CHAUFFEUR II: ‘Automated road transport and vehicles under electronic control’ (European Commission, Brussels, Belguim, 2003).
10. 10)
  - 2. Loomes, G.: ‘(How) Can we value health, safety and the environment?’, J. Econ. Psychol., 2006, 27, (6), pp. 713–736 (doi: 10.1016/j.joep.2006.05.005).
11. 11)
  - O.M.J. Carsten , F.N. Tate . Intelligent speed adaptation: accident savings and cost-benefit analysis. Acc. Anal. Prev. , 3 , 407 - 416
12. 12)
  - 7. Robinson, R.: ‘Cost–benefit analysis’, Br. Med. J., 1993, 307, (6909), p. 924 (doi: 10.1136/bmj.307.6909.924).
13. 13)
  - 3. Sugden, R.: ‘Coping with preference anomalies in cost–benefit analysis: a market-simulation approach’, Environ. Res. Econ., 2005, 32, (1), pp. 129–160 (doi: 10.1007/s10640-005-6031-5).
14. 14)
  - 21. PRE-DRIVE C2X: Social, political economics and business economics impacts of cooperative systems, potential business models, Deliverable D5.2/5.3, 2010.
15. 15)
  - 18. RESPONSE II: ‘Advanced driver assistance systems: from introduction scenarios towards a code of practice for development and testing’ (European Commission: Brussels, Belgium, 2004).
16. 16)
  - 26. Liu, R., Tate, J.: ‘Network effects of intelligent speed adaptation systems’, Transportation, 2004, 31, (3), pp. 297–325 (doi: 10.1023/B:PORT.0000025394.78857.13).
17. 17)
  - 5. PIARC: ‘ITS Handbook 2000’ (Committee on Intelligent Transport, Boston, 2000).
18. 18)
  - 13. Juan, Z., Wu, J., McDonald, M.: ‘The socio-economic impacts assessment of advanced convoy driving on motorway’, Transp. Res. A, Policy Pract., 2003, 37, (9), pp. 731–747 (doi: 10.1016/S0965-8564(03)00045-4).
19. 19)
  - 27. Guria, J., et al: ‘The willingness to accept value of statistical life relative to the willingness to pay value: evidence and policy implications’, Environ. Resour. Econ., 2005, 32, (1), pp. 113–127 (doi: 10.1007/s10640-005-6030-6).
20. 20)
  - 19. SEiSS: ‘Exploratory study on the potential socio-economic impact of the introduction of intelligent safety systems in road vehicles’ (2006).
21. 21)
  - 10. Poulos, C., et al: ‘A cost–benefit analysis of typhoid fever immunization programmes in an Indian urban slum community’, J. Health Population Nutr. (JHPN), 2011, 22, (3), pp. 311–321.
22. 22)
  - 22. DRIVE C2X: Deployment strategies for cooperative driving including standards and business models, Deliverable D11.5, 2013.
23. 23)
  - 14. Gordon, C.: ‘Applying benefit–cost analysis to intelligent transportation systems (ITS) and the Australian context’. 36th Australasian Transport Research Forum (ATRF), 2013, Brisbane, Queensland, Australia, 2013.
24. 24)
  - 31. European Commission: ‘Impact assessment guidelines’ (European Commission: Brussels, Belgium, 2009).
25. 25)
  - 23. Schulz, W.H., Joisten, N., Mainka, M.: simTD: Volkswirtschaftliche Bewertung: Wirkung von simTD auf die Verkehrssicherheit und die Verkehrseffizienz, Deliverable D5.5 – Teil B2, 2013.
26. 26)
  - 28. Kahneman, D., Sugden, R.: ‘Experienced utility as a standard of policy evaluation’, Environ. Resour. Econ., 2005, 32, (1), pp. 161–181 (doi: 10.1007/s10640-005-6032-4).
27. 27)
  - 1. Payton, O.D.: ‘Research: the validation of clinical practice’ (FA Davis, Philadelphia, 1988).
28. 28)
  - 8. Boardman, A.E., et al: ‘Cost–benefit analysis: concepts and practice’ (Prentice-Hall, Upper Saddle River, NJ, 1996).
29. 29)
  - 4. Sassone, P.G., Schaffer, W.A.: ‘Cost–benefit analysis: a handbook’ (Academic Press New York, New York, 1978), vol. 182.
30. 30)
  - 16. Newman-Askins, R., Ferreira, L., Bunker, J.M.: ‘Intelligent transport systems evaluation: from theory to practice’. Proc. of the 21st ARRB and 11th REAAA Conf. Transport. Our Highway to a Sustainable Future, Cairns, Australia, 2003.
31. 31)
  - 12. Eliasson, J.: ‘A cost–benefit analysis of the Stockholm congestion charging system’, Transp. Res. A, Policy Pract., 2009, 43, (4), pp. 468–480 (doi: 10.1016/j.tra.2008.11.014).
32. 32)
  - 32. HEATCO: ‘Developing harmonised European approaches for transport costing and project assessment’ (European Commission: Brussels, Belgium, 2006).

Future role of cost–benefit analysis in intelligent transport system-research

References

Related content