An important basis for decisions regarding road investments is Cost Benefit Analysis (CBA), where all costs and benefits should be taken into account and expressed in monetary terms. A valuation of the cost for the encroachment caused by a new road in, for example, a recreation area or a residential area is, however, missing in road investment CBA. The purpose of this thesis is to develop approaches to deal with the encroachment costs. More specifically two approaches are developed. One approach is ”cost transfer” for typical cases. With this approach the encroachment cost is estimated ex post for a number of existing roads within each typical case. The results are to be used to estimate a calculation formula to use for CBA of planned road investments where the encroachment can be referred to a particular typical case. The typical case ”barrier to water” was chosen for a pilot study with the aim of developing the method for data collection, and study what is most important for the encroachment cost per affected individual. The other approach is a method, developed in the thesis, for estimating the encroachment cost ex ante for each specific object. The method is called COPATS, ”Combined Opinion Poll and Travel Survey”. It makes use of the fact that roads mean both positive and negative effects to a different degree for the affected people. Data of the residence location, visiting frequency in the encroachment area and travel pattern is collected by a postal questionnaire before deciding on a road investment. In the same questionnaire it is also asked whether the respondent is for or against the planned road. The encroachment cost can be estimated from the respondents´ balancing of the benefit of travel time savings, and possibly some other positive effects, against the negative encroachment caused by the planned road. A conclusion is that both alternatives seem to be possible ways of including encroachment costs as part of road investment CBA. To estimate calculation formulas for cost transfer in some common typical cases, a large number of further encroachment cost studies must though be made. COPATS is closer to practical application, but needs to be further developed in collaboration with road planners. / Ett viktigt beslutsunderlag inför väginvesteringar är cost-benefit analys (CBA), där alla kostnader och nyttor skall inkluderas och uttryckas i monetära termer. Vid CBA för väginvesteringar saknas dock värdering av kostnaden för det intrång som en ny väg orsakar, exempelvis i ett rekreationsområde eller bostadsområde. Syftet med avhandlingen är att utveckla tillvägagångssätt för hantering av intrångskostnader. Mer specifikt utvecklas två tillvägagångssätt. Det ena tillvägagångssättet kan beskrivas som en metod för ”cost transfer”. Intrångskostnaden beräknas ex post för ett antal existerande vägintrång inom varje ”typfall”. På denna grundval utarbetas en beräkningsformel som sedan kan användas vid CBA för planerade väginvesteringar där intrången kan hänföras till ett visst typfall. Typfallet ”barriär mot vatten” har valts för en pilotstudie med syftet att utveckla metodiken för datainsamling, samt undersöka vilka faktorer som har starkast påverkan på intrångskostnaden per exponerad individ. Det andra tillvägagångssättet är en i avhandlingen utvecklad metod för direkt beräkning ex ante av intrångskostnader för varje särskilt investeringsobjekt. Metoden kallas COPATS, ”Combined Opinion Poll and Travel Survey”. Den utnyttjar det faktum att vägar medför både positiva och negativa effekter i varierande grad för berörda personer. Genom en enkätundersökning före beslut om en väginvestering samlas uppgifter om bostadens läge, vistelsefrekvens vid vägsträckningen ifråga och resvanor in. I enkäten ställs också frågan om personen är för eller emot den planerade vägen. Intrångskostnaden kan sedan skattas på basis av respondenternas avvägning mellan fördelen av kortare restider samt eventuella andra positiva effekter och nackdelen av intrånget av den planerade vägen. En slutsats är att båda alternativen verkar vara framkomliga vägar för att få med intrångskostnader i CBA för väginvesteringar. För att få fram beräkningsformler för de vanligaste typfallen måste dock ett betydande antal ytterligare intrångsstudier göras. COPATS ligger närmare praktisk tillämpning, men behöver utvecklas ytterligare i samverkan med vägplaneringsansvariga.

This master's thesis is focused on solving the issues associated with economic efficiency of construction and operation of road communications' projects. The paper defines significant socioeconomic benefits the operation of the road communications provides for the users and surroundings. It offers a summary of theoretical findings about the economic efficiency's calculation method, analyses the influence of the socioeconomic benefits on the final economic efficiency of the project and based on the results of the analysis it suggests and recommends provisions for investors, compliance of which might ensure implementation of the road communications with high value for future users.

The aim of this study is to explore ways to maximise the economic returns of road infrastructure investment. In order to achieve this objective, the study was divided into five parts involving the following: analysing the nature of road infrastructure, determining the relationship between road infrastructure investment and economic development, considering aspects of economic modelling, developing a formula of road investment, and refocusing road investment practices. In the first part the characteristics of road infrastructure are examined and the demand and supply approaches to road investment outlined. The focus is on the balanced approach versus the unbalanced approach to infrastructure investment. The second part analyses the causal relationship between road investment and economic development. Four components are highlighted, namely the investment component, the network-performance component, the transport economic component and the economic development component. The third part analyses the applicability of modelling techniques. In the fifth part, the formula of road investment and economic development is focused on four markets. Finally, it is argued that road infrastructure investment must be refocused. The following was found: Road infrastructure investment must be demand led. This is because of the characteristics of roads, namely their indivisibility, long gestation period, lumpiness and high cost. Road infrastructure investment can only realise economic development if the four causality components are complied with simultaneously. Input-output modelling is preferred in South Africa. The modelling strategy developed in this study is recommended for transport economic studies. The probability of economic returns of road infrastructure investment is a function of the real estate market, the land development market, the urban economic market and the infrastructure market. An agenda for reform in the road investment industry was also proposed. The study clearly identifies the relationship between road infrastructure investment and economic development, and the proposed formula is an appropriate tool for a first-order priority system. / Transport Economics, Logistics and Tourism / D. Com. (Transport Economics)

The aim of this study is to explore ways to maximise the economic returns of road infrastructure investment. In order to achieve this objective, the study was divided into five parts involving the following: analysing the nature of road infrastructure, determining the relationship between road infrastructure investment and economic development, considering aspects of economic modelling, developing a formula of road investment, and refocusing road investment practices. In the first part the characteristics of road infrastructure are examined and the demand and supply approaches to road investment outlined. The focus is on the balanced approach versus the unbalanced approach to infrastructure investment. The second part analyses the causal relationship between road investment and economic development. Four components are highlighted, namely the investment component, the network-performance component, the transport economic component and the economic development component. The third part analyses the applicability of modelling techniques. In the fifth part, the formula of road investment and economic development is focused on four markets. Finally, it is argued that road infrastructure investment must be refocused. The following was found: Road infrastructure investment must be demand led. This is because of the characteristics of roads, namely their indivisibility, long gestation period, lumpiness and high cost. Road infrastructure investment can only realise economic development if the four causality components are complied with simultaneously. Input-output modelling is preferred in South Africa. The modelling strategy developed in this study is recommended for transport economic studies. The probability of economic returns of road infrastructure investment is a function of the real estate market, the land development market, the urban economic market and the infrastructure market. An agenda for reform in the road investment industry was also proposed. The study clearly identifies the relationship between road infrastructure investment and economic development, and the proposed formula is an appropriate tool for a first-order priority system. / Transport Economics, Logistics and Tourism / D. Com. (Transport Economics)