Transportation

BenefIT-CosT raTIo and eConomIC assess- menTs of InTellIgenT TransporTaTIon sys- Tems
Overall, the benefit-cost ratio of systems-operations measures (enabled by intelligent transportation sys- tems) has been estimated at about 9 to 1, far above the addition of conventional highway capacity, which has a benefit-cost ratio of 2.7 to 1.⁶⁸ In one study, researchers at Florida International University found that the $9.9 million annual cost of a traffic operations management system in Broward County, Florida, yielded a benefit of
$142 million in reduced travel time, fuel consumption, emissions, and secondary accidents involving rubber- necks (a 14 to 1 ratio).⁶⁹ With regard to implementation of specific ITS systems, a study of 26 traffic signal op- timization projects in Texas found that signal optimi- zation benefits outweighed costs by 38 to 1.⁷⁰

A 2005 study of a model ITS deployment in Tucson, Arizona, consisting of 35 technologies including High- way Advisory Radio, dynamic message signs, a tele- phone and Web-based traveler information system, and kiosks found the implementation would deliver an expected 6 percent decrease in congestion, a 70 per- cent decrease in incident-related delay on freeways, and would decrease annual travel time by 7 hours per resident. The environmental impact of the implemen- tation anticipated reduction in annual fuel use by 11 percent and reduction in annual carbon monoxide, hydrocarbon, and nitrous oxide emissions between 10 and 16 percent. The expected average annual cost for

implementing, operating, and maintaining all 35 ITS technologies was estimated at $72 million, while the expected average benefit from the ITS deployments to mobility, the environment, safety, and other areas was estimated at $455 million annually. In total, the study estimated that the benefits of deploying ITS out- weighed the cost by 6.3 to 1.⁷¹

If the United States were to implement a national real-time traffic information program, the GAO estimates the present value cost of establishing and operating the program would be
$1.2 billion, but would deliver present value benefits of $30.2 billion, a 25 to 1 benefit-cost ratio.

If the United States were to implement a real-time traffic system management information program in all states and the nation’s 50 largest metropolitan ar- eas, the GAO estimates that the present value cost for establishing and operating the program through 2018 would be about $1.2 billion. However, the present val- ue of total cost savings due to benefits to mobility, the environment, and safety would be about $30.2 billion, reflecting a $29 billion benefit.⁷² This works out to a benefit-cost of ratio of 25 to 1 for making real-time traffic information available to U.S. drivers nation- wide. The GAO estimates such a system would deliver savings in incident delays of about 321 million hours annually; reduce annual fuel use by 11 percent; and re- duce annual carbon monoxide, hydrocarbon, and ni- trous oxide emissions between 10 and 16 percent.⁷³

South Korea’s implementation of intelligent transpor- tation systems has generated concrete benefits for its citizens. South Korea estimates that that the economic benefit of the country’s Traffic Management System due to reduced transportation time, accidents, and en- vironmental pollution has been 146.2 billion won ($109 million) annually. It estimates the impact of its Hi-Pass electronic toll collection system due to reduced trans- portation time, expense, environmental pollution, and operating expense, including labor costs, as 1,757 bil- lion won ($1.3 billion), an 11.9 to 1 benefit-cost ratio. Lastly, it estimates the economic benefits of provid- ing real-time traffic information (through in-vehicle

navigation units and the Internet, mobile phone, and radio broadcasts) as 181.1 billion won ($136 million) annually.⁷⁴