Benefit Cost Analysis
For Intersection Driver Support
Systems
David Levinson & Xi Zou
2004
Benefit Cost Analysis: Affected Groups
Users
Service
Providers
Society/
Community
Benefits
Costs
Reduced Fatalities,
Injuries &
Property Damage
Time Savings
Fuel Consumption
Increased Delay at
Intersection for Nonincident Conditions
N/A
Capital Costs
Operating and
Maintaining Costs
Reduced Delay from
Incidents
Capital Costs
Emissions
Other Costs
Identify Relevant Technologies

Highway Engineering
Countermeasures











Sight distance
Split Intersection
Roundabout
Right-turn Lanes
Left-turn Lanes
Channelization
Number of intersection legs
Intersection types
Approach Characteristics
Median
Alignment of approaches

Traffic Engineering
Countermeasures




Type of Traffic Control
Posted Speed Limit
Lighting
Advanced Warning Signs
Framework of Benefit Cost Analysis
The Base Case for the comparison is the existing safety
countermeasures at unsignalized intersections.
Two major alternative scenarios of development will
be examined:
1. The combination of highway engineering
countermeasures
2. The countermeasure developed in the IDS
project.
Framework of Benefit Cost Analysis
Base Case
(Do-Nothing)
Scenario
Traditional
Engineering
Scenario
ITS Scenario
Identify SubMarket Impacts
Identify SubMarket Impacts
Identify SubMarket Impacts
Cost
Analysis
Benefit
Analysis
NPV
Cost
Analysis
Benefit
Analysis
NPV
Cost
Analysis
Benefit
Analysis
NPV
Benefit Cost Ratio Comparison
Sensitivity Analysis
Recommendations
NPV: Net Present Value
Costs to Service Provider, Users and Community
Costs & Benefits to Service Provider, Users
and Community
Costs
Service Providers
Capital Costs
Costs of Baseline
(★)
Operating &
Maintaining
Costs
Others
Costs of
Traditional
Alternatives
(★)
Capital Costs
★
Operating &
Maintaining
Costs
★
Other Costs
Costs of ITS
Alternative
Users
(★)
Capital Costs
★
Operating &
Maintaining
Costs
★
Other Costs
(★)
Society/
Community
Benefit to Service Provider, Users and Community
Benefits
Service
Providers
Users
Society/
Community
Cost Savings
Operating and Maintaining Costs
(☻)
Fuel Consumption
(☻ )
Vehicle Operation
(☻ )
Safety Improvement
Fatality and Injury
☻
(☻)
Property Damage
☻
(☻)
Mobility
Reduction in Travel Time Delay
(☻ )
Reduction in Travel Time Variability
(☻ )
Improvement in Customer Satisfaction
(☻ )
Environmental Improvement
(☻ )
Vehicle Emissions
Efficiency
Increases in Arterial Throughput
(☻ )
Others
Enhanced Facility
Other Induced Effects
(☻)
Estimate Lifespan of Technology
Major Components:
1. Computer systems: Industrial PC
2. Communication system: wire, fiber optic or wireless
3.
Sensors:



4.
Display devices:



5.
6.
Radar
Lidar (Light Detection And Ranging)
Vision: visible and infrared cameras
For pole system, lights and poles are needed.
For message signs, panel display devices and poles are needed.
For beacon system, only beacons (installed with traffic signs) are
needed.
Traffic signs
Power units
Estimate Lifespan of Technology
Example:
1. Sensor system:
 Radar (Major), 10 yrs
 Lidar (Minor) 10 yrs
2. Computing and communication system:
 PC 5-10 yrs
 Wired communication 20 yrs
 Wireless 10yrs
3. Display:
 2x2 LED panels 50,000 hrs
4. Traffic signs:
 2 Stop signs with signage 20 yrs
Estimate Costs of Technology
Example:
 Display: 2 LED panels $5-8k
 Traffic signs: 2 Stop signs $150 + $60 labor
 Sensors & Communication: See Next Page


Maintenance costs:
Power consumption:
Category
Research
Contract
Production
$101,000
$101,100
$2,500
$2,500
Notes
$101,100
Labor
Trenching
Under road boring
Power cables
Data cable pull
Main cabinet foundation
Etc
Mainline Radar Sensors
Radar
PC-104 Comp.
Radar Pwr/Data
Main Cabinet Structure
Cable
Other Electronics
Mainline Video Sensors
Cameras
Electronics
Infrastructure
Main Cabinet Structure
68218
0
$2,500 We have 14 of these on the mainline.
Whether we can live with fewer will
depend on how well our estimator works.
Also depends on intersection geometry.
Hilly/curvy will require more sensors than
flat terrains.
0 Radar will prove sufficiently effective
for this application (Craig's assertion)
State pooled fund will use video to track
vehicle trajectories at the cross roads.
Not needed for production system.
Central Cabinet
Cabinet
iDAQ & Img Proc Comp
Communication
Electronics
Central Processor
Infrastructure
34785.2
Vehicle Classification Sensors
Radar
Laser
Sick PC-104 Comp.
Radar Pwr/Data
Laser Pwr/Data
Main Cabinet Structure
Cable
$36,770
Cables
$5,000
$2,500
$2,500
248273.36
121028.2
139288.2
7928.2
$7,000
26188.2 IF we have to run a wired system
If wireless proves sufficient.
$7,000 IF we need lasers for vehicle classification.
We hope classifiying radar will be sufficient.
$7000 cost represents the cost of doing
both minor legs with only Radar.
$36,770 is both minor legs with
Laser scanners.
Advanced loop detectors may also work
for vehicle classification. We will look at
that once the intersection is done.
Cat 5 data
RG 6 dual video
Reference
Shankwitz 2004
Estimate Benefits of Countermeasures
Recommended Standard Values in FY 2004, Mn/DOT
Discount Rate
Auto Time Value
Truck Driver Time Value
Auto Variable Operating Cost
Truck Variable Operating Cost
3.5%
$10.04 per person per hour
$18.61 per person per hour
$ 0.28 per mile
$ 1.45 per mile
Estimate Benefits of Countermeasures:
Travel Time Savings
Traffic on Highway 52 near the intersection of TH 52 and MN
CSAH9 in Goodhue County:
Average Annual Daily Traffic:
Heavy Commercial Traffic:
25700
2850
Source: State of Minnesota 2002 Truck Highway Traffic Volume Map,
Office of Transportation Data and Analysis, Mn/DOT
Need to know: Time saving (if existing) in hours (obtained
from data collection and simulation)
Estimate Benefits of Countermeasures


Abbreviated Injury Scale (AIS) is an anatomically
based system that classifies individual injuries by body
region on a six point ordinal scale of risk to life.
The maximum AIS (MAIS) is the highest single AIS
code for an occupant with multiple injuries.
Estimate Benefits of Countermeasures


Value of life $ 3,000,000 (FHWA DOT, Sept. 2003)
Costs of injuries (2000 Dollars, NHTSA):








PDO:
MAIS 0:
MAIS 1:
MAIS 2:
MAIS 3:
MAIS 4:
MAIS 5:
Fatal:
$ 2,532
$ 1,962
$ 15,017
$ 157,958
$ 314,204
$ 731,580
$ 2,402,997
$ 3,366,388
$ 2,256
$ 1,748
$ 13,383
$ 140,766
$ 280,007
$ 651,957
$ 2,141,462
$ 3,000,000
Estimate Benefits of Countermeasures: Crash
Savings

At the intersection of TH 52 and CSAH 9, 23 accidents are in the
police report from 01/01/2000 to 12/31/2002. The severities of these
accidents are:




1
10
6
6
A level
B level
C level
N level
($ 260,000, Mn/DOT)
($ 56,000, Mn/DOT)
($ 27,000, Mn/DOT)
($ 4,000, Mn/DOT)
Total cost is $ 1,006,000 (1997 Dollar) or $1,156,900 (Current
Dollar)
Or ranges from $2,083,641 to $ 5,035,366 (2003, FHWA DOT)


Social benefits: Life and property savings by reducing crashes.
Need to know: reduction in the number of crashes and reduction in the
severity of crashes.
Estimate Benefits of Countermeasures:
Remaining Value


Recommended Remaining Capital Value factors for Use in
Economic Analysis in FY 2004 (Ref. 2)
Expected
Life (yrs)
25
30
35
40
20 Years
0.30
0.49
0.62
0.70
25 Years
0.0
0.27
0.45
0.58
Expected Life (yrs) (Ref. 2)
Preliminary Engineering
0
Right of Way
100
Major Structures
60
Grading and Drainage
50
Sub-Base and Base
40
Surface
25
Questions ?
Inflation of Dollars

2003 Dollar


1997 Dollar
Current Dollar


$ 1.1462
$1.15
1997 Dollar
1998
1999
2000
2001
2002
2003
1.55%
2.19%
3.38%
2.83%
1.59%
2.27%
Source:

http://inflationdata.com/inflation/Inflation_Rate/HistoricalInflation
.aspx
Values Used in Benefit Calculation
(Miller)
Comprehensive Costs by Severity of Accident
Accident Severity
Cost Per Person
Crash
K-Fatal
A-Incapacitating
$2,392,742
$169,506
Cost Per
$2,722,548
$228,568
B-Evident
$33,227
$48,333
C-Possible
$17,029
$25,288
O-Property Damage
$1,734
$4,489
Unreported
$1,601
$4,144
A-B-C reported nonfatal
$46,355
$69,592
K-A-B-C reported injury
Source: Miller 1991 (p39)
rate
$77,153
$115,767
Note: assuming 1988 dollars and 4% discount
Subtasks






C1: Identify relevant
technologies, Review of
Literature.
C2: Develop Benefit Cost
Framework.
C3: Estimate Lifespan of
Technology.
C4: Estimate Costs of
technology.
C5: Estimate Benefits of
Countermeasures.
C6: Lifecycle Analysis.






C7: Recommend
Countermeasures.
C8: Analyze Intertechnology Effects.
C9: Determine
Performance Metrics.
C10: Develop
cost:performance models.
C11: Analyze Synergies.
C12: Optimize Countermeasure Combination.
Benefit Cost Analysis: Concept
A benefit/cost analysis evaluates the advantages (benefits)
and disadvantages (costs) of transportation investment
alternatives by comparing their benefit-cost ratio.
Major Benefits:
Reducing likelihood of crashes, reducing travel time, and
vehicle operating costs.
Major Costs:
Initial capital investment and maintenance costs.
Task 3: Estimate Lifespan of Technology
Major References:


FHWA (2004) Equipment Costs for Roadside Detection (RS-D),
ITS Benefits and Costs Database.
FHWA (1996) National ITS Architecture Cost Analysis, prepared
by the Architecture Development Team.
Task 4: Estimate Costs of Technology
Major Reference:
1. National ITS Architecture Cost Analysis (FHWA, 1996), prepared by the
Architecture Development Team.
The costs of ITS elements in this document are based primarily on the unit costs in:
The
National ITS Architecture Cost Analysis (FHWA 1996) and
The
ITS Deployment Analysis System (IDAS) equipment list. IDAS is software
developed by the Federal Highway Administration for ITS planning and cost/benefit
analysis.
2. Quotation No. 1251 by Shane Electric, Inc. to University of Minnesota on
Highway 52 Project.
3. Abby McKenzie, Benefit /Cost Analysis for Transportation Projects (per
Minnesota Laws 2001, Chapter 10, Article 2, Section 41), Mn/DOT office of
Investment Management Statewide Planning and Analysis.
Task 5: Estimate Benefits of Countermeasures
Major Reference:
Abby McKenzie, Benefit /Cost Analysis for
Transportation Projects (per Minnesota Laws 2001,
Chapter 10, Article 2, Section 41), Mn/DOT office of
Investment Management Statewide Planning and
Analysis.
Task 6: Lifecycle Analysis
Major Reference:
Lockheed Martin Federal Systems, Odetics Intelligent
Transportation Systems Division (1997), ITS Cost Analysis,
prepared for FHWA, DOT.
Ongoing Tasks
C7: Recommend Countermeasures.
 C8: Analyze Inter-technology Effects.
 C9: Determine Performance Metrics.
 C10: Develop cost:performance models.
 C11: Analyze Synergies.
 C12: Optimize Countermeasure Combination.

Task 4: Estimate Costs of Technology
Itemized Costs of Highway 52 Project
 Annualized
Cost
Assumed Service Life
20 Years
Annual Capital Recovery Cost
x
Power
x
Communication
x
Maintenance
x
Total Annual Cost
x