2020-23 TIP Return on Investment (ROI) for transportation projects - PDF document

5/31/2017 Click to edit Master title style Click to edit Master title style 2020-23 TIP Return on Investment (ROI) for transportation projects June 2017 Board Work Session Presented by: Daniel Jerrett, PhD June 7, 2017 Click to edit Master title style TIP White Paper – Recommendation #3 Click to edit Master title style Create a project selection process that places more emphasis on project benefits, overall value, and return on investment. Establish a project selection process that applies investment decisions based on quantifiable performance metrics directly linked to Metro Vision and regional plan goals and objectives , while allowing flexibility to implement projects providing the most benefit to meet today’s needs and advance the region’s multimodal transportation system. 1

5/31/2017 Click to edit Master title style ROI and Transportation: Typical “dimensions” Click to edit Master title style Economic Livability Social Health Environmental Click to edit Master title style Borrowing from our peers – MTC (Bay Area) Click to edit Master title style Project B Cost/Benefit # Metro Vision Outcomes, Objectives or TIP Focus Areas Addressed 2

5/31/2017 Click to edit Master title style Primary measures Click to edit Master title style Measured or modeled without interpretation nor monetization: Measures Obtained from Vehicle travel time Travel model Greenhouse gas emissions Travel model + Vehicle operating cost Travel model + Access to ADA facilities Network Analysis Access to recreational/cultural amenities Travel model + Land use model Access to transit by low income population Travel model + Land use model Fatalities and serious injuries CDOT … … Click to edit Master title style From primary measures to ROI: Example Click to edit Master title style Higher productivity Economic Health Livability system Higher income Increased production Reduction in travel time Environmental Social equity Indirect effect Direct effect 3

5/31/2017 Click to edit Master title style From primary measures to ROI: Pilot approach (example) Click to edit Master title style Pilot approach – what we hope to test: Estimating partial monetary effects Expected strengths: Reduction in GHG Source: FHWA $ • Simplicity/transparency emissions • Sensitivities + + Source: … • Consistency across project types Reduction in vehicle $ travel time + + Potential challenges: Source: … • Indirect effects: double counting Increased access to $ recreational amenities and/or underestimation • Finding reliable multipliers for all primary measures • Agreement on assumptions Total benefits: $ Click to edit Master title style Click to edit Master title style 2020-23 TIP Return on Investment (ROI) for transportation projects June 2017 Board Work Session Presented by: Daniel Jerrett, PhD June 7, 2017 4