Benefit-Cost Analysis
Benefit-cost analysis is a systematic process for calculating and comparing benefits and costs of a project to 1) determine if it is a sound investment and 2) see how it compares with alternate projects. Benefit-cost analysis determines the value of a project by dividing the incremental monetized benefits related to a project by the incremental costs of that project. In the objectives-driven, performance-based approach to planning for operations, benefit-cost analysis can be used to screen and identify management and operations (M&O) projects or strategies that meet operations objectives. It can also be used to support inclusion and prioritization of M&O strategies in the transportation plan and metropolitan/State transportation improvement program (S/TIP). Finally, benefit-cost analysis can support monitoring and feedback needs within the planning cycle by allowing for the assessment of deployed strategies.
OTHER RESOURCES
- Road Weather Benefit Cost Analysis Compendium (HTML, PDF 3.4MB)
- Transportation Systems Management and Operations Benefit-Cost Analysis Compendium (HTML, PDF 4MB)
- Operations Benefit/Cost Analysis Desk Reference (HTML, PDF 4.3MB)
- FHWA Operations Benefit/Cost analysis Desk Reference Flyers:
- FHWA Operations Benefit/Cost Analysis Desk Reference: Real-World Examples of Application of the Guidance (HTML, PDF 610KB)
- FHWA Operations Benefit/Cost Analysis Desk Reference: Conducting Benefit/Cost Analysis of Strategies Impacting Non-Typical Traffic Conditions (HTML, PDF 244KB)
- FHWA Operations Benefit/Cost Analysis Desk Reference: Providing Guidance to Practitioners in the Analysis of Benefits and Costs of Management and Operations Projects (HTML, PDF 1.1MB)
- Benefit Cost Analysis – Road Weather Management: Principles and Examples of Benefit-Cost Analysis for Road Weather Management (HTML, PDF 273KB)
- Benefit Cost Analysis – Road Weather Management: Conducting Benefit Cost Analysis of Road Weather Management Strategies (HTML, PDF 399KB)
- Benefit Cost Analysis – Transportation Systems Management and Operations: Fundamentals of Benefit-Cost Analysis for Transportation Systems Management and Operations (HTML, PDF 253KB)
- Benefit Cost Analysis – Transportation Systems Management and Operations: Providing Case Studies for Practitioners in the Use of Benefit-Cost Analysis for Management and Operations Projects and Strategies (HTML, PDF 261KB)
- Benefit Cost Analysis – Transportation Systems Management and Operations: Use of Archived Operations Data in Planning and Benefit Cost Analysis (HTML, PDF196KB)
- National Transportation Operations Coalition (NTOC) Webinar Recording and Transcript, Benefit-Cost Analysis for Operations, April 4, 2012.
- U.S. DOT ITS Knowledge Resources Benefits and Costs Database
- Tool for Operations Benefit Cost Analysis (TOPS-BC)
