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is expressed as annual cost per crash reduced [equation 7-5, p. 7-10, Vol. 1 (Part B) of the HSM].
For countermeasure 1: Roundabout Cost-effectiveness Index = $1,500,000/122.177 = $12,277
10-21
Cost-Effectiveness Index Intersection 2
Countermeasure Cost Per Crash Reduced
Roundabout $12,277
Protected left‐turn signal $14,280
10-22
MI Time of Return (TOR)
• Estimate impact of treatment benefits• Estimate cost of treatment• Determine number of years to recover
investment
10-23
Additional Considerations Influence Decisions
• Non-monetary*– Public perceptions– Air Pollution– Energy Consumption
• Other monetary– Road user costs (delay, operating costs)– Maintenance and operations– Costs to achieve environmental standards– Costs to achieve ecological protection
*Not every benefit or cost can be translated to monetary terms
10-24
Module 10: Economic Appraisal and Prioritization
HSM Training Module 10 ‐ 7
Other Countermeasure Implementation Issues
• Interchange construction
• Roundabout construction
• Protected left-turn signal
• Red-light cameras
R/W, capital cost, NEPA issues, access to businesses change, traffic and other impacts during construction; public acceptance
Increased delays and potential queues (effects on adjacent driveways)
Implementation and maintenance costs, public perceptions
10-25
HSM Effectiveness Measures to Consider
• # total crashes reduced• # fatal and incapacitating injury crashes
• Optimization methods• Monetary value of project benefits 10-28
Module 10: Economic Appraisal and Prioritization
HSM Training Module 10 ‐ 8
10-29
Ranking with Net Present ValueCountermeasure Net Present Value
($)Rank
Roundabout $2.82 M 1
Protected left‐turn signal
$0.43 M 2
NPV Ranking does not consider initial costs and should generally be applied to alternatives with equal costs 10-30
Benefit‐Cost Ranking for One SiteCountermeasure BCR Rank
Roundabout 2.88 2
Protected left‐turn signal 3.01 1
Cost-Effectiveness Index at One Site
Countermeasure Cost Per Crash Reduced
Rank
Roundabout $12,277 1
Protected left‐turn signal $14,280 2
10-31Cost-effectiveness ranking does not consider crash severities.
Optimization Methods
Optimization methods identify a project set that will maximize benefits within a fixed budget and other constraints.• Linear programming• Integer programming• Dynamic programming