The Environmental Impact Of Road Investments:
An Economical Analysis With An Emphasis On
By Pass Investments
Author(s)
S. Grudemo
Abstract
When motoring was in its infancy in Sweden the main roads were located
straight through towns – the first generation meeting between road and town.
When traffic flows were growing, traffic problems along these roads were
growing as well. The second generation meeting is when a by pass is built.
Winners are heavy traffic, long distance travellers and inner city residents,
getting less noise, exhaust fumes and vibrations. But by passes often cause
encroachment on recreation areas for nearby residents. The third generation
meeting occurs at substantial distances between built-up areas and continuous,
broad roads passing towns. In southern Sweden, main roads often are built as
such roads, but not in northern Sweden. There traffic flows are too low.
\“Environmental encroachment” is not yet valued monetarily in the Cost Benefit
Analysis (CBA). The missing value includes physical encroachments in areas
important for nature, recreation and/or culture, the barrier the road constitutes
(towards an attractive area, river, lake etc.), and the impact on urban or rural
landscape. Contingent Valuation Method (CVM) can be a suitable valuing
encroachment, especially when winners and losers are different groups. Losers
can state their willingness to pay (WTP) for getting environmental improvement
(for example a road tunnel). Ex post studies are preferable. A road investment
resulting in encroachment is usually controversial and respondents in ex ante
studies tend to exaggerate their willingness to pay. In an ex post study they have
no incentive for acting strategically. The development of a calculation model,
from ex post studies with CVM, has been started. It shows that mean annual
willingness to pay in a nearby area for getting a motorway that is a barrier
between the dwelling and a lake in tunnel is about 4000 SEK (> 400 Euro).
Keywords: infrastructure investments, encroachment costs, Cost Benefit
Analysis, Contingent Valuation Method, questionnaires, case study,
referendums.
Keywords
infrastructure investments, encroachment costs, Cost Benefit
Analysis, Contingent Valuation Method, questionnaires, case study,
referendums.
Related Book
Other papers in this volume
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