CEG8413

NEWCASTLE UNIVERSITY
SCHOOL OF CIVIL ENGINEERING AND GEOSCIENCES

______________________ SEMESTER 1 2010-2011 ______________________

ECONOMIC AND ENVIRONMENTAL APPRAISAL OF TRANSPORT ACTIVITIES

Time allowed: 2 hours

Instructions to candidates:1. Answer 3 of the 5 questions. 2. All questions carry equal marks.

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CEG8413 QUESTION 1 a) A town suffers from very heavy through traffic and resulting congestion. A bypass scheme is being planned to relieve the town of this problem. Several alternative routes are being considered for this bypass. As a transport planner, you are required to appraise the alternative options. Describe how you would develop a framework to appraise this scheme also discussing the criteria you would consider. [17 marks] b) Comment on how the framework developed in (a) deals with sustainability issues [8 marks] What are the issues relating to appraising the criteria which cannot be assigned monetary values? [8 marks]

c)

QUESTION 2 a) Discuss the greenhouse effect and its global impact considering significant increase in greenhouse gas (GHG) emissions in the recent past. [10 marks] b) Comment on the key international treaties dealing with the climate change and how various governments have responded to the challenge by setting various GHG reduction targets. [10 marks] Describe and comment on the NATA approach of appraising transport schemes impact on local air quality. Comment on the use of the personal exposure approach to quantify air quality impacts. [13 marks]

c)

QUESTION 3 a) Explain the principle of discounting and comment on how it is used in assessing the costs and benefits associated with a major transport project. [17 marks] Explain what is meant by cross price elasticity of demand. Give two examples, relating to transport: one where you would expect the cross price elasticity to be positive; and the other where you would expect the cross price elasticity to be negative. [8 marks] What are externalities and should they be included in Cost-Benefit Analysis? [8 marks] Page 2 of 3 Continued

b)

c)

CEG8413 QUESTION 4 a) The total cost to society of an accident can be divided into two types of costs. Describe these two categories of costs and the elements that make up the costs in each category. [6 marks] b) Analysis of accident data reveals differences in the characteristics of accidents that typically occur on different types of roads (built-up, non-built-up and motorway). Discuss the nature of the differences which have been found and the way in which these affect the average accident cost for 3 different road types. [15 marks] In order to estimate the monetary value of the safety benefits of a given scenario, forecasts must be made of the numbers of accidents of each type that are likely to occur. Describe how these forecasts are made (indicating which software tool performs this calculation and where the tables of values that it uses can be found). In future years, what changes may occur which could affect the accuracy of the forecasts and therefore have be taken into account? [12 marks]

c)

QUESTION 5 a) Describe the history and background to the treatment of wider economic costs currently proposed in NATA. [8 marks] b) What are the four main areas in which wider economic impacts might be assessed? For each, give a brief description of the way in which improvements to the transport infrastructure might lead to the wider economic impact. [17 marks] It is not appropriate to consider the wider economic impacts for relatively small scale projects. Give the circumstances for which each of the four areas should be considered for appraisal. [8 marks] END OF PAPER

c)

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