CVEN 632 – Transportation Engineering: Economics Syllabus – Spring 2011 3 Credit Hours Description: Engineering and economic principles for transportation systems; engineering evaluation using methods of travel demand, costs, equilibrium and pricing; use of economic principles for the finance, engineering and management of transportation systems. Prerequisite: CVEN 672 or approval of instructor. Objectives: Familiarize the student with engineering, management, financial, and economic principals in transportation. Detail how these principles are the foundation of decisions made in the transportation industry. Instructor: Dr. Mark Burris CE/TTI Building Room 301B Phone: 979-845-9875 e-mail: mburris@tamu.edu Class website: http://cenotes.tamu.edu Lecture: Tuesday and Thursday, 9:35 to 10:50 Room: CE 104 Office Hours: TR, 2:30 to 4:30 Text: None. However, there will be MANY handouts that you need to read PRIOR to the class that they are discussed. Evaluation: 15% Homework 10% Class Presentation & 35% Term Paper 10% Class Participation and Attendance 30% Midterm Exam Grading Policy: A = 90%+, B = 80 to 89.9, C = 70 to 79.9, D = 60 to 69.9, F = below 60. Homework: Homework assignments are due at the beginning of the class on the due date of the assignment. Homework assignments may be handed in late with the following penalties: anytime after the beginning of class up to 1 class late -20%; 2 classes late -40%; 3 or more classes late and not excused by the University — not accepted. Homework should be presented in a professional manner. Each assignment should have a title page indicating name, date, course and assignment number. The problem statement should be provided. Solutions should show all work neatly and in organized steps. Partial credit will be awarded for solving the problem using the correct method. Final answers should be clearly identified. Solutions should be done on unfolded paper and page numbers should be clearly indicated. Assignment’s pages should be stapled together. i Class Presentation and Term Paper: Each student is required to make a 15-minute PowerPoint presentation on one of the subjects covered in the course material or a related topic. A list of subject areas will be distributed at the beginning of the term. In advance of the presentation, the student will supply the instructor with a final draft of their presentation. At the latest, this must be supplied the morning two days before the presentation. Even earlier is preferable since that will give you more time to make suggested adjustments to the presentation. The student is also required to write a comprehensive paper on that topic. The paper will be submitted near the end of the semester. Class Participation and Attendance: Class lectures will be highly interactive and students are expected to actively participate in the class discussions. Academic Honesty: The purpose of homework is to help you learn the course material. Working on homework in groups is permitted. However, each person must turn in a separate writeup and solution prepared by his/her own hand. This means that the problem description, steps taken to solve the problem, and computer input and output must be generated by each person individually. By University regulations, copying another person's homework is considered plagiarism, and is not permitted. Please refer to the latest issue of the Texas A&M University Student Rules, under the section "Scholastic Dishonesty."(http://student-rules.tamu.edu/). Additionally, be sure to abide by these rules, and the rules on plagiarism, when writing your final report. The handouts used in this course are copyrighted. "Handouts" means all materials generated for this class, which include but are not limited to syllabi, quizzes, exams, lab problems, in-class materials, review sheets, and additional problem sets. Because these materials are copyrighted, a student does not have the right to copy the handouts unless the instructor expressly grants permission. “An Aggie does not lie, cheat, or steal or tolerate those who do.” Students are expected to understand and abide by the Aggie Honor Code presented on the web at: http://www.tamu.edu/aggiehonor No form of scholastic misconduct will be tolerated. Academic misconduct includes cheating, fabrication, falsification, multiple submissions, plagiarism, complicity, etc. These are more fully defined in the above web site. Violations will be handled in accordance with the Aggie Honor System Process described on the web site. Americans with Disabilities Act (ADA): The Americans with Disabilities Act (ADA) is a federal anti-discrimination statute that provides comprehensive civil rights protection for persons with disabilities. Among other things, this legislation requires that all students with disabilities be guaranteed a learning environment that provides for reasonable accommodation of their disabilities. If you believe you have a disability requiring an accommodation, please contact the Department of Student Life, Services for Students with Disabilities, in Cain Hall or call 845-1637. ii CVEN 632 – TRANSPORTATION SYSTEM ENGINEERING MANAGEMENT TENTATIVE CLASS SCHEDULE (subject to change) Date Class Topic Reading, Description 1/18/11 1 Course Introduction & Engineering Economics Appendix on Engineering Economics, Bonds Transportation Financing Basic Economic Analysis & Utility of Public 1/20/11 2 Works On the Measurement of the Utility of Public Works, Value of a Statistical Life 1/25/11 3 Funding of Transportation Slides 1/27/11 4 Innovative Financing Methods Innovative Finance from ITE and FHWA (Note: just skim the big FHWA document) Guest Speaker Dr. David Ellis Evaluation of Transportation Alternatives 2/1/11 5 Cost – Benefit Analysis 2/3/11 6 Cost – Benefit Analysis – example using Electronic Toll Collection Cost Benefit Analysis of Electronic Toll Collection. CBA of QuickRide. BCA Primer Cost Benefit Analysis of Electronic Toll Collection. CBA of QuickRide. BCA Primer 2/8/11 7 Other Evaluation Methods Transportation Performance Measures Demand for Transportation 2/10/11 8 Disaggregate Models Chapter 2: Discrete Choice Methods 2/15/11 9 Introducing New Travel Options Stated Preference Data 2/17/11 10 Elasticity of Travel Demand HERS Model Technical Report Appendix C Transportation Costs 2/22/11 11 Cost and Production Functions: Cobb-Douglas & Translog. Variable, Fixed, Average, and Marginal Costs Chapter 3: Transportation Costs 2/24/11 12 Value of Travel Time Measurement of the Valuation of Travel Time Savings. Trucking Fees and Their Impact Trucking Fees Environmental Externalities Environmental Externalities of Motor-Vehicle Use in the U.S. 3/1/11 3/3/11 13 14 Student: Student: iii 3/8/11 15 Cost Allocation Principles 3/10/11 16 Air Pollution and Cost Allocation 3/22/11 17 Modal Cost Structures Highway Cost Allocation Development of Sustainable Transportation Metrics for Vehicular Pollutants & Chapter 7: Politics of Controlling Auto Air Pollution A Desire Named Streetcar & Chapter 11: The Urban Transportation Problem & New Starts Dr. Joe Zietsman Student: Pricing of Transportation Services 3/24/11 18 Shadow, Ramsey, 2nd Best Pricing Chapter 4: Pricing 3/29/11 19 Marginal Cost Pricing, Congestion Pricing in theory Slides on Pricing Projects 3/31/11 20 Midterm Exam 4/5/11 21 Congestion Pricing in Practice Discrete Choice Models of Traveler Participation in Time of Day Variable Toll Rates, Burris & Pendyala, Transport Policy, 2002 4/7/11 22 Pricing, Regulation, and Performance (Airlines) U.S. Airlines Student: Dr. Jeff Borowiec Management Issues The Bottom Line: Analysis of Company Financial Reports The Bottom Line: Analysis of Company Financial Reports Equity Issues in Transportation 4/12/11 23 4/14/11 24 4/19/11 25 4/21/11 26 Transportation and Land Use 4/26/11 27 Open Topic 4/28/11 28 Student Presentations of Term Papers 5/6/11 29 FINAL EXAM, 12:30 to 2:30 Analyzing Company Reports Student: Analyzing Company Reports Student: Evaluating Transportation Equity Student: Chapter 12: Transportation and Land Use, and slides Students: iv Class Presentation (10%) & Term Paper (35%) Instructions Each student is required to make a 15-minute PowerPoint presentation on one of the subjects covered in the course material or a related topic. In advance of the presentation (at least two days prior to the presentation), the student will supply the instructor with a final draft of their presentation. TOPIC AREAS Below is a list of potential topics and (in some cases) some suggested readings. You will have to reference additional sources for the paper and presentation. 1) Value of Travel Time – Measurement of the Value of Travel Time Savings (Class 12) Define VTTS and its importance in transportation Different measurement techniques How the values vary under different circumstances, different travelers Value of travel time reliability 2) Environmental Externalities (Class 14) – Green House Gasses are a big issue Mark A. Delucchi, J. of Trans. Econ & Policy, May 2000. 3) Modal Cost Structures - Chapter 11 & Don Pickrell, A Desire Named Streetcar, APA Spring 1992 (Class 17) 4) Pricing of Transportation Services – Marginal Cost (Congestion) Pricing in Practice Chapter 4 & 6 & Discrete Choice Models of Traveler Participation in Time of Day Variable Toll Rates, Burris & Pendyala, Transport Policy, 2002 (Class 21) Examine how this theory has been applied in practice 5) Equity Issues in Transportation (Class 25) Todd Litman Article 6) Transportation and Land Use (Class 26) 7) The Bottom Line: Analysis of Company Financial Reports (Class 23) Investigate the financial health of a (transportation) company by looking at its balance sheet, income statement, and stock price performance. Topics presented during student presentation days (Classes 28 & 29) 1) Should insurance agencies license drivers instead of state governments? How would this impact various fees? Would this be practical to implement? What impacts would it have on drivers? Externalities? What are the potential costs and benefits? 2) How would VMT (Vehicle Miles Traveled) fees impact travelers – particularly spending on transportation? 3) Transportation Utility Fees – redistribution of transportation financing through a fee based on trips generated. Use ITE Trip generation book to compare gas tax and property tax to an impact fee. Could do for BCS with new TransCAD data. 4) What would be the implication of adding fees to the purchase of gas to cover uninsured motorists? v Compare and contrast the costs and benefits of current accounting for uninsured motorists as compared to the addition of a fee on gas. 5) Examine the potential costs and benefits of just about any transportation related project you can think of. (For example, a student examined the costs and benefits of the Wellborn pedestrian underpass in a previous class). 6) Examine the difference between stated and revealed preference surveys. How do the results of stated preference surveys compare to results after the proposal being surveyed is implemented? How do we combine stated and revealed preference data to obtain an improved model? 7) The purchase of toll roads/bridges by private firms 8) How much do drivers of hybrids in California value their time? They can receive a free trip on the HOV lanes if they have a hybrid with a special, limited number of, registered stickers. These are now causing the price of used vehicles to increase dramatically. 9) Travel time variability – how do travelers value reliability of their travel time? 10) Replacing the gas tax with a vehicle miles traveled fee. 11) Financing of new roadway projects through the use of tax increment financing or other tool that has land owners paying for a portion of the cost of the facility. 12) I have several datasets that need more analysis: Katy Freeway Managed Lane travelers Houston and Dallas Travelers Austin Truck Drivers Others… 11) Other topics of interest to the student. STRUCTURE OF THE PAPER Note – this is a guideline. It is possible that the Research Approach and Data sections may not fit your topic well and you will need to rearrange/drop/combine sections. Remember your goal is a logical paper that is easy/intuitive for the reader to follow. Your paper should tell the reader a story… The Title of your paper should let those interested in your topic know that this is a paper that they should examine (as part of their general reading/knowledge or a literature review for their work). The Abstract is then a way for the reader to get a quick summary of (a) the importance of the topic (b) your research efforts and (c) your results. For managers/politicians this may be all they will read – so make sure your main findings are included. Next the Introduction provides your reader with the “big picture” context of the issue you are studying (how does this issue fit into transportation engineering and planning or the world in general) and why is it important. Explaining the importance of your vi research is important so that (a) the reader is motivated to read on and (b) to be clear in your own mind the importance and place for this research. The Literature Review then highlights the efforts conducted by others in this area of research. This provides the reader a background for what is going on in the field and lets them know you have “done your homework” and are not ignoring the important work already done in the research area. This leads into how your research differs from others as outlined in your Research Objectives. The research objectives section also highlights the issue you are investigating and the exact question(s) you hope to answer. You expand on this in your Research Methodology, so the reader knows how you answered the question and can be assured you followed a proper scientific analysis process. This section may overlap /merge with the Data section as you explain to the reader what data you obtained, how you obtained it, any data validity issues and how you dealt with them, how you may have manipulated the data for use in your study and what statistical tests you used for analysis of the data. Now that the reader is confident in your data and the methods used to analyze the data, you can present your Results and discuss their meaning, how they answered your research questions, and implications towards the “big picture” you mentioned in your introduction. Your Conclusions should then briefly re-iterate the problem, approach and your findings – with a focus on the most important findings. Also mention potential future research. Finally, include an Acknowledgements section and list your References. In some cases an Appendix or two may be necessary to present some of your data. Students may choose to work alone or in group as large as 3. If working in a group the paper may be longer (up to 40 pages) and will be graded according to the number of students in the group. The greater the number of students, the higher the expected quality of the report. ASCE Reference Style: To cite sources in the text, use the author-date method; list the last names of the authors, then the year. The formats are as follows: one author—(Smith 2004); two authors—(Smith and Jones 2004); three or more authors—(Smith et al. 2004). Prepare a reference section listing all references alphabetically by last name of the first author. For anonymous reports and standards, alphabetize by the issuing institution. Below are samples of properly formatted and complete references: Journals: King, S., and Delatte, N. J. (2004). “Collapse of 2000 Commonwealth Avenue: Punching shear case study.” J. Perf. Constr. Facil., 18(1), 54-61. Conference Proceedings and Symposia: Fwa, T. F., Liu, S. B., Teng, K. J. (2004). “Airport pavement condition rating and maintenance-needs assessment using fuzzy logic.” Proc., Airport Pavements: Challenges and New Technologies, ASCE, Reston, Va., 29-38. Include the sponsor of the conference or publisher of the proceedings, AND that entity’s location—city and state or city and country. Books and Reports: Feld, J., and Carper, K. (1997). Construction failure, 2nd Ed., Wiley, New York. Book references must include author, book title, publisher, and the publisher’s location. If a specific chapter is being used, list the chapter title and inclusive page numbers. For reports, include the full institution name (not just the acronym) and its location. vii Unpublished Material: Unpublished material is not included in the references. It may be cited in the text in the following forms: (John Smith, personal communication, May 16, 1999) or (Jones et al., unpublished manuscript, 2002). As an exception to the rule, articles that are accepted for publication may be included in the references as follows: Gibson, W. (2003). “Cyberspace: The postmodern frontier.” J. Comp. in Fiction, in press. Web Pages and On-line Material: Burka, L. P. (2002). “A hypertext history of multiuser dimensions.” MUD history, <http://www.ccs.neu.edu> (Dec. 5, 2003). Include an author if possible, a copyright date, a title, the Web address, and the date the material was accessed or downloaded (in parentheses at the end). CD-ROM: Liggett, J. A., and Caughey, D. A. (1998). “Fluid statics.” Fluid mechanics (CD-Rom), ASCE, Reston, Va. Include authors, copyright date, titles, medium, and producer/publisher and their location. GRADING SCHEME Title Page: Abstract: Table of Contents: Body of the Report: References: Title, Name, Class, Date: Provides good summary of the report: Less than 300 words: Includes all parts of report: Correct page numbers: 1.5 spaced: 15 to 25 pages (can be longer if more than 1 student): Flow/organization: Content ** worth the most **: Grammar: Notes: Includes all necessary references: Correct and consistent reference style: Note: use ASCE style DUE DATES To keep everyone on track towards the goal of an excellent research paper I will examine drafts of parts of the paper a couple times during the term. I will also assign grades that will count towards the paper grade. February 8th – Title and abstract (note – you should talk with me for 5-10 minutes regarding your topic before you write this) March 22th – Title, Abstract, Introduction and Literature Review, Research Problem, Research Approach or Methodology, and Data. April 14th – Draft of entire paper (if you are not finished the analysis indicate what you plan to write about in your results and conclusions). May 6th – Final Paper. viii