Traffic Engineering · 1976 · 14 citations · 0 references
Public HealthEconomicsTransportation PlanningCost-benefit AnalysisTransportTransportationAir Speed EffectsTraffic SafetyTransport EconomicsTransportation EconomicsTransportation ModelsBenefit-cost BalanceFuel EconomyFuel Economy ImpactsInput Data AnalysisSpeed Limit Reduction
The question is considered whether the benefits of the 55 mph speed limit outweight the costs incurred such as the costs of the longer producer-to-market travel times. An automobile travelling at 55 mph requires 16.4 minutes more to cover 70 miles than when travelling at 70 mph. The value of three types of benefits (gasoline, lives, injuries) are computed by means of equations. The sum of the benefits is divided by the sum of the costs. Application of this procedure to 1974 data gives a benefit/cost ratio of 0.823; i.e. costs outweigh the benefits. The sensitivity of this ratio to changes in input data is considered, and it is observed that changes in the values of the subvariables can have a significant impact on the ratio.