Chapter 6 - part 2

Question 1

What is the evaluation period?

Answer 1

period of time over which the benefits and costs of a project will be measured. The evaluation period should
incorporate both the initial time taken to develop and build a project as well as decommissioning or disposal costs associated with its eventual closure at the end of its operating life

Question 2

What elements make up RUC?

Answer 2

• travel time costs (TTC) -
• vehicle operating costs (VOC)
• accident costs

Question 3

What elements make up agency costs?

Answer 3

1. Investment
2. maintenance
3. residual value

Question 4

What is an externality?

Answer 4

When a transaction (trip) takes place, it causes an impact on a 3rd party that was not directly involved in the transaction
• Can be positive (social benefits due to access to education / increased house
prices)
• Can be negative (pollution / noise)

Question 5

Externalities in transport:

Answer 5

air pollution, GHG, noise, water, nature and landscape, urban separation