dsit_pro-poor transport economics

8/10/2019 DSIT_Pro-Poor Transport Economics

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Socially Sustainable Transport Training – Session 18

Pro-Poor Transport Economics(Andrew McIntyre / Scott Ferguson)



Traditional Transport Analysis

Savings in vehicle operating costs (VOC)

Value of time savings (VOT) of vehicle occupants

Savings in accident costs

This approach is not socially inclusive

because often traffic volumes are very low;

Operating costs of public vehicles is not passed onto people “traffic” often consists of non-motorized vehicles (pedestrians,

cycles, animal-drawn carts, cycle rickshaws etc);

Volumes from new access routes are difficult to measure

Traditional measures are sometimes too small to justify EIRR

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Transport Demand Forecasts/Surveys

For passenger movements, the ultimate transport objective

is to satisfy people’s demands for mobility and access (notvehicle movements)

Time savings is one desirable objective, but so areminimizing travel and associated costs (these are oftenforgotten or ignored)

Many surveys measure traffic movements without

understanding travel demands (trip purpose and travelneeds)

Ask “who does what, to where, how often, and at whatcost?”

Also look at other data sources, cases studies (proxies)

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How to ensure transport systems andservices are inclusive?

Understand the travel needs of various stakeholder

groups – not just vehicle owners – especially whenpublic investment is used - inequitable

Public transportation by definition is more inclusive,

but are systems and services provided in a manner

that is truly inclusive?

We should be able to test this hypothesis and ratethe degree of inclusiveness – is this feasible for ADB

transport projects?

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Transport Purposes

Livelihood – shopping, collect wood

Production – work or farm

Services – education, health

Social Purposes – family, community

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What types of surveys are beingconducted for ADB projects?

Daily vehicle counts and time of day counts

O/D surveys __________________________________________________________________________________________________________________________________________________________

What about?

Passenger counts (cars, buses, bicycles)

Pedestrian counts

Trip purpose and frequency surveys

Household surveys (targeting communities orspecific groups)

Multi-modal network analysis (urban planning)

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Inform Project Design

Amenity - Toilets, markets, road stalls

Access – infrastructure, transport

Multiple purpose – stations, roads

Integrated design – tourism, health

Cash/Benefit transfers - (fuel, tolls) Land Use Planning

Alternatives - ICT

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Examples of EIRR –Rural Roads India

Case Study measured with/without

Change in incomes of poor (6-9% of poor above BPL) Education Access = improved literacy = earnings increase

(10% poor become literate increase income 40%)

Education Access = improved literacy = lower population =

more surplus / household (population growth rate 1.6% less)

Health Access = improved health = less absenteeism from work= increased income (5% less days absent x wage)

Social capital

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EIRR Rural Road India

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Other Studies

PNG – Valuing benefits HDM4 – noise, dust (‘80s)

Laos – contingent valuation benefits China - Poverty Alleviation ranking

Ghana – participatory approach to technical ranking

WB – benefits just can’t be measured

WB Bhutan – EIRR reduced 12% to need for 5-6% WB Vietnam – matching propensity for poor

households to use options

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Social Capital

Consists of the networks, norms, relationships, values and

informal sanctions that shape the quantity and co-operative

quality of a society’s social interactions

Includes bonding, bridging, linking

Good social capital can result in:

– high levels of and growth in GDP;

– more efficiently functioning labour markets;

– higher educational attainment;

– lower levels of crime;

– better health;

– more effective institutions of government.

Difficult to quantify except through case study11



Methods to Quantify Some SocialBenefits

Human capital approach – return on an investment measured

as the person’s renewed or increased production

Revealed preferences - Human behavior can reveal

preferences and thus economic value

– household production function – eg. avertive expenditure

– hedonic pricing method – comparative pricing of similar

Contingent valuation - hypothetical survey methods to elicit

willingness to pay (WTP) values for goods in a hypotheticalmarket

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Conclusion

Understand that they may not be quantifiable

Use good examples If possible, prepare good Case Studies

Please share any other ideas……..

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dsit_pro-poor transport economics

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