Accounting for peak shifting in traditional cost-benefit analysis

Snarr, Hal W. and Axelsen, Dan (2007): Accounting for peak shifting in traditional cost-benefit analysis. Published in: The Journal of Economic Development and Business Policy , Vol. 1, No. 1 (December 2007): pp. 1-23.

Abstract

When cost-benefit analysis fails to account for peak-shifting the benefits of road improvement options are miscalculated. Using theory from transportation economics, we derive a simple model that disaggregates the average daily equilibrium into peak, counter-peak, and off-peak equilibria. This paper demonstrates how accounting for peak-shifting improves the performance of cost-benefit analysis.

• Item Type: MPRA Paper
• Language: English
• Keywords: Transportation Demand, Transportation Supply, Congestion, Cost/Benefit Analysis, Planning Policy
• Subjects: D - Microeconomics > D6 - Welfare Economics > D61 - Allocative Efficiency ; Cost-Benefit Analysis; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics > R41 - Transportation: Demand, Supply, and Congestion ; Travel Time ; Safety and Accidents ; Transportation Noise; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O21 - Planning Models ; Planning Policy

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