Accounting for peak shifting in traditional cost-benefit analysis

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.Transportation Demand, Transportation Supply, Congestion, Cost/Benefit Analysis, Planning Policy