Travel behaviour change guidance handbook

Print version: Travel behaviour change guidance handbook (PDF, 1.29 MB, 87 pages)

Appendix B:   Worked example

• Introduction
• Worksheet 1 — Summary of analysis of chosen option
• Worksheet 2 — Project description profile
• Worksheet 3 — Costs of the project
• Worksheet 4 — Expected diversion rate
• Worksheet 5 — Benefits of the project

Introduction

These procedures provide a method of appraising the economic efficiency of travel behaviour change (TBhC) projects. TBhC projects are a relatively new and growing area of transport system management. TBhC projects generally employ education, information and marketing based approaches to achieve voluntary changes in the travel behaviour of individuals.

These procedures cover the most common types of TBhC projects, which are workplace and school travel plans, and household-based initiatives. The Land Transport New Zealand / EECA “Travel Behaviour Change Guidance Handbook” provides further information on the development, evaluation and monitoring of TBhC proposals.

These evaluation procedures use a 10 percent discount rate and 10 year evaluation period. The worksheets assume that projects adopted will be completed in the first year and will be in service by the start of year 2. All costs are to be exclusive of GST.

Worksheet 1 — Summary of analysis of chosen option

Explanation sheet for Worksheet 1

Worksheet 1 identifies the TBhC project, provides a link to the proposal information recorded via LTP online, and summarises key economic evaluation inputs and outputs.

Enter the project name at the top of the sheet.

Enter data that provides a link between the economic evaluation covered by this simplified procedure and the information that has been or will be recorded in LTP online.

Guidance for completing LTP online forms is provided in Appendix A.

1. Enter the general information including project location, base date, time zero, etc.
2. Enter the PV of cost of the project, which is estimated on Worksheet 3.
3. Enter the information used to select the most appropriate default diversion rates and composite benefit values in Worksheets 4 and 5.
4. Enter the PV of benefits from Worksheet 5, enter update factor if necessary (from Appendix A12 of PEM – Volume 1), calculate updated PV of benefits, and divide by the PV of costs from Step 2 above to determine the benefit/cost ratio.
5. Record other economic evaluation output information as appropriate.

Worksheet 1 — Summary of analysis of chosen option

Download Worksheet 1 (PDF, 32 KB)

Worksheet 2 — Project description profile

Explanation sheet for Worksheet 2

Explanation sheet

Separate project description profile sheets are provided for different types of TBhC projects as follows:

• Worksheet 2A — Workplace travel plans
• Worksheet 2B — School travel plans
• Worksheet 2C — Household and community based initiatives

Select the form that is relevant for the TBhC project type that is being evaluated and complete this form.

Information recorded in Worksheet 2 is used for:

• Determining and confirming the diversion rate profile for the project
• Post-implementation analysis of contributing factors to TBhC project diversion rates and the success or failure of the project

For TBhC project types other than the three for which sheets are provided, select the most applicable project description profile and record the relevant information, or use it as a guide and record corresponding information on a separate sheet.

Worksheet 2 — Project description profile

Download Worksheet 2A — Workplace travel plans (PDF, 14 KB)
Download Worksheet 2B — School travel plans (PDF, 14 KB)
Download Worksheet 2C — Household and community based initiatives (PDF, 26 KB)

Worksheet 3 — Costs of the project

Explanation sheet for Worksheet 3

Worksheet 3 is used for calculating the PV cost of the travel behaviour change project.

1    Calculate the cost of the option, i.e. investigation, design, implementation etc. Attach the estimate sheet to this Worksheet. Separately identify the estimated costs for project development (investigation/design) and those for implementation. Multiply the costs by the discount factor 0.91 to get the PV. When conducting initial indicative evaluations for project development funding for workplace and school travel plans obtain a cost estimate from past experience or judgement. The implementation cost estimate will be refined and the evaluation reconfirmed based on the completed plan before implementation funding is approved.

Consider whether a composite evaluation may be required. This is required if the TBhC project cost is over $200,000 and the TBhC project is a package containing non-TBhC components such as walk/cycle paths or minor road safety improvements. A composite evaluation is optional if project cost is under $200,000 and project contains substantial non-TBhC components – particular consideration should be given to adopting this approach for primary school travel plans. Refer to TBhC guidance handbook for further guidelines on composite evaluations of TBhC packages.

2    Estimate the cost of annual expenditure required to maintain the benefits of the TBhC project over the remainder of the evaluation period following completion of project based on local experience and knowledge. For household/community based initiatives this is generally zero unless the proposal contains specific plans for follow-up measures. For workplace and school travel plans it is likely that some ongoing maintenance expenditure will be required to maintain benefits over the ten year evaluation period.

3    Calculate the PV of any periodic “maintenance” expenditures. Enter the years and the amounts in the table.

4    Sum (a) + (b) + (c) to get Total $__________A.

Present worth factors — for 10% discount rate

Year	Single payment SPPWF
1	0.91
2	0.83
3	0.75
4	0.68
5	0.62
6	0.56
7	0.51
8	0.47
9	0.42
10	0.39

Worksheet 3 — Costs of the project

Download Worksheet 3 — Costs of the project (PDF, 32 KB)

Worksheet 4 — Expected diversion rate

Explanation sheet for Worksheet 4

Worksheet 4 is used for selecting the appropriate default diversion rate.

The tables show the diversion rates between modes that were used to derive the composite benefit values in Worksheet 5. These are the most appropriate default diversion rates based on experience to date. They are not used directly when conducting TBhC evaluations as the composite benefit values already take account of these default diversion rates.

If analysts consider they have strong reasons why a different diversion rate is more appropriate for their situation they can interpolate a composite benefit value (based on the values in Worksheet 5 and their project situation compared with the default diversion rates shown here) for workplace travel plans, or use a computer spreadsheet programme (available from Land Transport NZ) to forecast a diversion rate and calculate a composite benefit value for any TBhC project.

When conducting initial indicative evaluations for project development funding for workplace and school travel plans the diversion rate should be selected based on the proponent’s knowledge of the organisations involved and the area. For the final evaluation for implementation funding the diversion rate will be based on the actual features of the completed plan.

Workplace travel plans

There are several default diversion rate profiles for workplace travel plans. The appropriate profile is identified by determining a score for the project based on the anticipated or proposed measures to be included in the workplace travel plan.

The Standard diversion rate values are applicable in most situations where no significant public transport measures are included in the workplace travel plan. The Alternative “with public transport service improvements” diversion rate values are applicable when significant public transport service improvements (including company provided transport), subsidy schemes, or other similar measures (covered by the last two questions in the scoring table) are part of the workplace travel plan.

School travel plans

There are only two default diversion rate profiles for schools, one for primary and another for intermediate and secondary schools.

Household and community based initiatives

The Standard diversion rate value is applicable for most projects.

The Low diversion rate is applicable in situations where:

• The proposal will implement fewer measures than “usual” household based programmes, eg a community travel awareness campaign on its own would not achieve the standard diversion rate
• public transport services and cycling/walking facilities in the area are poor and no significant changes to these are envisaged as part of the TBhC proposal

Worksheet 4 — Expected diversion rate

Workplace travel plans

There are two sets of diversion rates for workplace travel plans: Standard – where no passenger transport improvements are proposed and Alternative – where there are proposed passenger transport improvements. Within these two sets of diversion rates, a scoring system is used to select the appropriate profile for a given workplace travel plan. The score, out of six, is assigned based on the responses to the questions in the table below.

	Yes	No
Is car-parking availability constrained at the workplace?	1	0
Does the proposed workplace travel plan include:
•   One or more parking management strategies*?	1	0
•   Improvements to cycling/walking facilities?	1	0
•   Ridesharing matching service?	1	0
•   Public transport service improvements or company transport?	1	0
•   Public transport subsidies?	1	0
Total score (sum of “yes” column)

*Strategies for managing parking demand include initiatives such as parking charges, reduced supply of parking spaces, parking “cash-out” scheme, etc.

Workplace travel plans - Default diversion rates (percentage point change in mode share)

	Score	Car as driver	Car as passenger	Public transport	Cycling	Walking
Standard - without public transport measures
Low	1 or 2	0.0%	0.0%	0.0%	0.0%	0.0%
Medium	3 or 4	-5.0%	1.3%	1.3%	0.6%	1.8%
Alternative - with public transport service improvements or subsidies
Low	1 or 2	0.0%	0.0%	0.0%	0.0%	0.0%
Medium	3 or 4	-5.0%	1.3%	2.6%	0.3%	0.8%
High	5 or 6	-12.9%	3.3%	7.4%	1.0%	1.2%

School travel plans

Select either the primary school or secondary/intermediate diversion rate as appropriate.

School travel plans - Default diversion rates (percentage point change in mode share)

Diversion rate	Car as driver	Car as passenger	Public transport	Cycling	Walking
Low	-1.0%	-0.2%	0.5%	0.3%	0.4%
Standard	-3.1%	-0.5%	1.4%	0.9%	1.3%

Worksheet 5 — Benefits of the project

Explanation sheet for Worksheet 5

Worksheet 5 is used for calculating the PV cost of the TBhC project.

Select composite benefit value

The tables on Worksheet 5 contain composite benefit values for a range of TBhC project types and situations. This composite benefit value includes benefits to the person changing their travel behaviour as well as benefits to remaining road users and the general community, such as reduced health costs and accident risk, decongestion and environmental benefits. The exact composition depends on the nature of the TBhC project being undertaken. The composite benefits also incorporate the default diversion rate assumptions for each TBhC project type (as shown on Worksheet 4) as well as the average trip length for each mode affected by the project.

Select and circle the composite benefit value that is applicable to the proposed TBhC project from the appropriate table. Composite benefit values are the average annual benefit for all people in the workforce, school or community targeted by the TBhC project (and take account of the proportion that do not participate or change their travel behaviour).

Determine target population

The target population is the TOTAL population of the workplace, school, or community in which the TBhC project is being implemented. It includes the people who do not participate in the project and those who participate but do not change their behaviour.

Type of TBhC project	Definition of target population
Workplace	The total workforce (number of employees) at the workplace covered by the travel plan. Make appropriate adjustment if a significant proportion of employees work more or less than the standard five days per week.
School	The total school roll. If this is expected to vary significantly in the next few years use an appropriate average.
Household and community	The total population of the community/suburb/area in which the household or community based initiative is being implemented.

Calculate PV of benefits

1. Multiply the composite benefit by the target population to determine the annual benefit.
2. Multiply the annual benefit by the discount factor for years 2 to10 to calculate the PV of benefits over the evaluation period.

Worksheet 5 — Benefits of the project

Download Worksheet 5 — Benefits of the project (PDF, 33 KB)

 

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Page created: 22 October 2008