Evaluation Procedure for Mutually Exclusive Highway Safety Alternatives under Different Policy Objectives

AbstractThe purpose of evaluating mutually exclusive alternatives is to select the one with the most benefits for implementation. A number of analytic techniques are available for such evaluation purposes. This paper discusses four such techniques: cost effectiveness C/E, benefit-to-cost ratio B/C, internal rate of return (IRR), and payoff period (PP), including their theoretical foundation and data requirements. Also discussed are the measures of effectiveness (MOEs) associated with each of these techniques and how they are to be interpreted. Alternatives to be selected for implementation following such evaluation can typically be funded under different policy objectives. This paper identifies three such objectives: Objective A, constrained resource perspective; Objective B, investment perspective; and Objective C, face-value perspective. The possible relationship between the alternative selection and the program is discussed in the paper. A case study for a set of six mutually exclusive highway safety a...