USER AND NON-USER BENEFIT ANALYSIS FOR HIGHWAYS September 2010 American Association of State Highway and Transportation Officials © 2010 by the American Association of State Highway and Transportation Officials. All rights reserved. Duplication is a violation of applicable law. © Copyright 2010, by the American Association of State Highway and Transportation Officials. All rights reserved. This book, or parts thereof, may not be reproduced in any form without written permission of the publisher. Printed in the United States of America. ISBN: 978-1-56051-467-1 Publ. Code: UBA-3 © 2010 by the American Association of State Highway and Transportation Officials. All rights reserved. Duplication is a violation of applicable law. table of Contents FIGURES Figure 1-1. Relationship of User Benefit Analysis with Other Analysis Areas............1-6 Figure 1-2. The Workflow Path from Project to Evaluation Parameters ............... 1-10 Figure 1-3. The Workflow Path from Evaluation Parameters to Economic Feasibility Measurement............................................................. 1-12 Figure 2-1. Stylized Calculation of Consumer Surplus............................. 2-16 Figure 2-2. Stylized Calculation of Benefits with Shift in Demand................... 2-19 Figure 2-5. Stylized Representation of the User Cost Linkages ..................... 2-28 Figure 3-1. The Effects of Lane Additions on Speed on Urban Freeways and Expressways for Various Increases in Capacity (Speeds in Miles per Hour) ..........3-6 Figure 3-2. The Effects of Lane Additions on Speed on Urban Collectors and Arterials for Various Increases in Capacity (Speeds in Miles per Hour) .............3-7 Figure 3-3. The Effects of Lane Additions on Speed on Rural Freeways and Expressways for Various Increases in Capacity (Speeds in Miles per Hour) ..........3-8 Figure 3-4. The Effects of Lane Additions on Speed on Rural Collectors and Arterials for Various Increases in Capacity (Speeds in Miles per Hour) .............3-9 Figure 3-5. Stylized Transportation Analysis Zone Overlay......................... 3-16 Figure 3-6. Intersection Control Delay for Minor Movements, by Entering Flow and Intersection Capacity (below saturation; T = 0.25)......................... 3-20 Figure 3-7. Intersection Control Delay for Minor Movements by Entering Flow and Intersection Capacity (Above Saturation; T = 0.40) ........................ 3-21 Figure 3-8. The Effect of Metering on Ramp Users’ Travel Time by Ramp Volume and Location of the Metering Facility ........................................ 3-25 Figure 3-9. The Effect of Tolls on Traffic Volume, User Benefits, and Toll Revenue ..... 3-43 Figure 5-1. Fuel Cost (Cents per Mile) by Speed—Automobiles..................... 5-13 Figure 5-2. Fuel Costs (Cents per Mile) by Speed—Heavy Trucks . . . . . . . . . . . . . . . . . . . 5-13 Figure 5-3. Annual Amortized Cost, by Interest Rate and Life (per $1,000 of Capital Value) ............................................... 5-16 Figure 5-4. Inventory Costs per-Vehicle Mile, by Speed and Cargo Value (at 10 Percent Interest Rate) ................................................ 5-18 Figure 5-5. Accidents and Volume-Capacity Relationship for Urban Freeways......... 5-27 Figure 6-1. Diurnal Pattern of V/C Ratios and Relative Travel Time Savings (Low Exponent BPR Function) ...............................................6-8 Figure 6-2. Diurnal Pattern of V/C Ratios and Relative Travel Time Savings (High Exponent BPR Function)...............................................6-8 Figure 6-3. Peak Hour Share of Total Daily Volume (250 Highway Sample) .......... 6-15 Figure 6-4. Peak Traffic Shares, Primary vs. Secondary Direction (for 250 Highway Sample).................................................. 6-15 Figure 6-5. The Relationship Between Peak Hour and Daily Benefits (Using b = 10) ............................................................ 6-16 Figure 6-6. The Benefit Expansion Factor for Capacity Enhancements, for Various BPR Exponents (b) and Various Daily Peak Traffic Factors ........... 6-17 Figure 6-7. Peaking Factors Tend to Decline with ADT ............................ 6-18 xiv user and non-user benefit analysis for highways © 2010 by the American Association of State Highway and Transportation Officials. All rights reserved. Duplication is a violation of applicable law. table of Contents Figure 6-8. Examples of Seasonal Patterns for Different Road Locations.............. 6-23 Figure 6-9. Average Daily Traffic in Peak Month as Share of Annual Daily Traffic (from 122 Oregon Facility Count Data) ...................................... 6-24 Figure 6-10. Relationship Between Seasonal Peaking Factor and Seasonal Expansion Factor (b = 10 in BPR Function) .......................... 6-24 Figure 6-11. Expansion Factor from Peak Month to Annual Benefits (For Various BPR Exponents (b) and Seasonal Peaking Factors) ................. 6-26 Figure 6-12. User Travel Time Savings, by Project Year and Initial V/C Ratio ......... 6-29 Figure 6-13. Timeline of Highway Project Planning and Implementation, Forward Evaluation Date................................................... 6-34 Figure 6-14. Timeline of Highway Project Planning and Implementation, Contemporaneous Evaluation Date .......................................... 6-34 Figure 6-15. Annual Rates of Change of the ENR Construction Index ............... 6-45 Figure 6-16. Operating Costs for Urban Highways (in 1997 Cents per Vehicle-Mile)............................................ 6-54 Figure 6-17. Operating Costs for Urban Highways (in 1997 Cents per Vehicle-Mile), cont........................................ 6-55 Figure 6-18. Operating Costs for Rural Highways (in 1997 Cents per Vehicle-Mile)............................................ 6-56 Figure 6-19. Operating Costs for Rural Highways (in 1997 Cents per Vehicle-Mile), cont........................................ 6-57 Figure 6-20. Stylized Representation of User Benefit Aggregation and Extrapolation ... 6-61 Figure 6-21. Stylized Representation of Present Value Calculations .................. 6-62 TABLES Table 2-1. QuickGuide Table to the Basic Steps of User Benefit Analysis ................2-4 Table 2-2. Stylized Calculation of User Benefits Resulting from a Reduction in Trip Cost..................................................... 2-17 Table 2-3. Hypothetical Project Costs for Selected Years and Activities ............... 2-30 Table 2-4. Passenger Car Equivalents at Typical Operating Weights by Vehicle Configuration and Facility Class (Battelle, 1998) ..................... 2-32 Table 3-1. Worksheets in HCM 2000 for Calculating Speed on Roadway Segments of Various Types...........................................3-3 Table 3-2. Typical BPR Function Parameters in Volume-Delay Analysis ................3-5 Table 3-3. Sources for Detailed Traffic Control Delay Measurements................. 3-22 Table 3-4. Capacity and Freeflow Speeds of Typical Freeway Ramps ................. 3-24 Table 4-1. Worksheets in the HCM 2000 for Calculating Speed or Delay on Roadway Segments or Intersections of Various Types..........................4-3 Table 4-2. Relevant Highway Types, Lane Improvement Categories, and Appropriate Sections of the HCM 2000 ....................................4-4 Table 4-3. HCM 2000 Worksheets by Improvement and Highway Type................4-5 Table 4-4. Worksheets in HCM 2000 for Calculating Speed on Roadway Segments of Various Types ...................................................4-8 user and non-user benefit analysis for highways xv © 2010 by the American Association of State Highway and Transportation Officials. All rights reserved. Duplication is a violation of applicable law. table of Contents Figure 6-8. Examples of Seasonal Patterns for Different Road Locations.............. 6-23 Figure 6-9. Average Daily Traffic in Peak Month as Share of Annual Daily Traffic (from 122 Oregon Facility Count Data) ...................................... 6-24 Figure 6-10. Relationship Between Seasonal Peaking Factor and Seasonal Expansion Factor (b = 10 in BPR Function) .......................... 6-24 Figure 6-11. Expansion Factor from Peak Month to Annual Benefits (For Various BPR Exponents (b) and Seasonal Peaking Factors) ................. 6-26 Figure 6-12. User Travel Time Savings, by Project Year and Initial V/C Ratio ......... 6-29 Figure 6-13. Timeline of Highway Project Planning and Implementation, Forward Evaluation Date................................................... 6-34 Figure 6-14. Timeline of Highway Project Planning and Implementation, Contemporaneous Evaluation Date .......................................... 6-34 Figure 6-15. Annual Rates of Change of the ENR Construction Index ............... 6-45 Figure 6-16. Operating Costs for Urban Highways (in 1997 Cents per Vehicle-Mile)............................................ 6-54 Figure 6-17. Operating Costs for Urban Highways (in 1997 Cents per Vehicle-Mile), cont........................................ 6-55 Figure 6-18. Operating Costs for Rural Highways (in 1997 Cents per Vehicle-Mile)............................................ 6-56 Figure 6-19. Operating Costs for Rural Highways (in 1997 Cents per Vehicle-Mile), cont........................................ 6-57 Figure 6-20. Stylized Representation of User Benefit Aggregation and Extrapolation ... 6-61 Figure 6-21. Stylized Representation of Present Value Calculations .................. 6-62 TABLES Table 2-1. QuickGuide Table to the Basic Steps of User Benefit Analysis ................2-4 Table 2-2. Stylized Calculation of User Benefits Resulting from a Reduction in Trip Cost..................................................... 2-17 Table 2-3. Hypothetical Project Costs for Selected Years and Activities ............... 2-30 Table 2-4. Passenger Car Equivalents at Typical Operating Weights by Vehicle Configuration and Facility Class (Battelle, 1998) ..................... 2-32 Table 3-1. Worksheets in HCM 2000 for Calculating Speed on Roadway Segments of Various Types...........................................3-3 Table 3-2. Typical BPR Function Parameters in Volume-Delay Analysis ................3-5 Table 3-3. Sources for Detailed Traffic Control Delay Measurements................. 3-22 Table 3-4. Capacity and Freeflow Speeds of Typical Freeway Ramps ................. 3-24 Table 4-1. Worksheets in the HCM 2000 for Calculating Speed or Delay on Roadway Segments or Intersections of Various Types..........................4-3 Table 4-2. Relevant Highway Types, Lane Improvement Categories, and Appropriate Sections of the HCM 2000 ....................................4-4 Table 4-3. HCM 2000 Worksheets by Improvement and Highway Type................4-5 Table 4-4. Worksheets in HCM 2000 for Calculating Speed on Roadway Segments of Various Types ...................................................4-8 user and non-user benefit analysis for highways xv © 2010 by the American Association of State Highway and Transportation Officials. All rights reserved. Duplication is a violation of applicable law. table of Contents Table 4-5. Access Management Techniques Covered in NCHRP Report 420............4-9 Table 4-6. Annual Delay (Hours) to Major Street Left-Turn and Through Vehicles .... 4-10 Table 4-7. Threshold Traffic Volumes for Installing Non-Traversable Medians, by Road Type and Land Use ................................................ 4-10 Table 4-8. Simplified Capacity Calculations for Left-Turn Lanes..................... 4-12 Table 4-9. Impedance Factor for Simplified Left-Turn Lane Capacity Calculations ..... 4-12 Table 4-10. Chapter References for Roadside Design Improvement Types............. 4-14 Table 4-11. Worksheets in HCM 2000 for Calculating Speed on Roadway Segments of Various Types......................................... 4-15 Table 5-1. Guidelines for Assigning Values of Time in Highway Project Analysis ........5-3 Table 5-2. Average Wages and Total Compensation, by Industry (2000 $)...............5-4 Table 5-3. Hours of Delay per Heavy Vehicle Crash by Roadway Class, Location, and Severity .......................................................5-5 Table 5-4. Automobile Operating and Ownership Costs (Cents), 2010. .............. 5-10 Table 5-5. Fuel Consumption for Autos and Trucks, by Average Operating Speed...... 5-12 Table 5-6. Fuel Consumption (Gallons) per Minute of Delay by Vehicle Type ......... 5-14 Table 5-7. Motor Vehicle Accident Involvement and Costs in 2000................... 5-24 Table 5-8. Sources for Information on Accident Prediction Tools .................... 5-26 Table 5-9. Values for Overdispersion Parameter in the Empirical Bayes Procedure...... 5-34 Table 5-10. Recommended Negative Binomial Coefficient Values for Urban Three-Leg Stop-Controlled Intersections (For Use in Equation 5-22)....... 5-36 Table 5-11. Recommended Lognormal Coefficient Values for Urban Four-Leg Intersections—Stop-Controlled and Signalized (For Use in Equation 5-22) ....... 5-37 Table 5-12. Accident per Million VMT by Median Type—Urban and Suburban Areas........................................................... 5-41 Table 5-13. Accidents per Million VMT by Median Type—Rural Areas.............. 5-41 Table 5-14. Accident Rates Based on an Average of Seven Computer Models.......... 5-42 Table 5-15. Summary of Accident Reductions Due to Left-Turn Treatments . . . . . . . . . . 5-42 Table 5-16. Accident Cost by Abbreviated Injury Scale (2000 $)..................... 5-43 Table 5-17. Insurance Reimbursement Calculation (Year 2000 Dollars and Rates) ..... 5-45 Table 5-19. Sample Comparison of Two Contracting Methods ...................... 5-61 Table 6-1. Recommended Uses of Extrapolation Procedures ..........................6-5 Table 6-2. Summary of Expansion Factors for Measuring Annual Benefits ............ 6-27 Table 6-3. HERS Estimates of Construction Costs, per Lane Mile (Updated to 2000 Dollars) ................................................. 6-46 Table 6-4. HERS Estimates of Unit Construction Costs, per Element (Urban Facilities, Updated to 2000 Dollars)................................... 6-47 Table 6-5. HERS Estimates of Unit Construction Costs, per Element (Rural Facilities, Updated to 2000 Dollars) ................................... 6-48 Table 6-6. HERS State Adjustment Factors ...................................... 6-49 Table 7-1. Summary of User Benefit Calculations for MicroBENCOST................7-2 Table 7-2. Summary of User Benefit Calculations for WSDOT Benefit–Cost Software...7-3 xvi user and non-user benefit analysis for highways © 2010 by the American Association of State Highway and Transportation Officials. All rights reserved. Duplication is a violation of applicable law. table of Contents Table 7-3 . Summary of User Benefit Calculations for ROADSIDE . . . . . . . . . . . . . . . . . . . .7-4 Table 7-4 . Summary of User Benefit Calculations for SPASM . . . . . . . . . . . . . . . . . . . . . . . . .7-5 Table 7-5 . Summary of User Benefit Calculations for STEAM . . . . . . . . . . . . . . . . . . . . . . . .7-6 Table 7-6 . Summary of User Benefit Calculations for HDM4 . . . . . . . . . . . . . . . . . . . . . . . . .7-6 Table 7-7 . Summary of User Benefit Calculations for StratBENCOST . . . . . . . . . . . . . . . . .7-7 Table 7-8 . Summary of User Benefit Calculations for IDAS . . . . . . . . . . . . . . . . . . . . . . . . . .7-7 Table 7-9 . Summary of User Benefit Calculations for CAL-BC . . . . . . . . . . . . . . . . . . . . . . . .7-8 Table 7-10 Comparison of Available Benefit–Cost Software . . . . . . . . . . . . . . . . . . . . . . . . . .7-9 Table 7-11 . Summary of State DOT Software Survey Results . . . . . . . . . . . . . . . . . . . . . . . 7-10 Table 8-1 . Construction Costs for Three Hypothetical Projects . . . . . . . . . . . . . . . . . . . . . . . .8-2 Table 9-1 . Output Elasticities for Investment in Transportation Infrastructure . . . . . . . . . 9-17 Table 9-2 . Environmental External Costs of Motor Vehicle Use 1990–1991 (1991 Dollars) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-27 Table 9-3 . Transportation Contributions to U .S . Pollutant Emissions in 2002 . . . . . . . . . 9-34 Table 9-4 . Air Pollution Costs (2005 U .S . Dollars per VMT) . . . . . . . . . . . . . . . . . . . . . . . 9-35 Table 9-5 . Suggested Distribution of VMT by VehicleType . . . . . . . . . . . . . . . . . . . . . . . . . 9-39 Table 9-6 . Water Pollution and Hydrologic Impacts of Stormwater Runoff . . . . . . . . . . . . 9-41 Table 9-7 . Pollution Levels in Road Runoff (Milligrams per Liter) . . . . . . . . . . . . . . . . . . . 9-42 Table 9-8 . Typical Mitigation Costs as a Share of Project Costs . . . . . . . . . . . . . . . . . . . . . . 9-47 Table 9-9 . Marginal Pavement, Congestion, Crash, and Noise Costs for Illustrative Vehicles Under Specific Conditions (2000) . . . . . . . . . . . . . . . . . . . . . . . . . . 9-52 Table 9-10 . Estimated Highway Noise Costs (1997 U .S . Cents per VMT) . . . . . . . . . . . . 9-52 Table 9-11 . Base-Case Marginal Noise Costs in Urban Areas (1991 U .S . Dollars per 1,000 VMT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-53 Table 9-12 . Barrier Effects (2005 U .S . Dollars per VMT) . . . . . . . . . . . . . . . . . . . . . . . . . . 9-61 Table 10-1 . Representative Output, Personal Income, and Employment Multipliers . . . . 10-9 Table 10-2 . Hypothetical Distribution of User Benefits by Multiple Characteristics . . . 10-24 WORKSHEETS Worksheet 3-1 . Travel Time Savings from Intelligent Transaction Processing— Sample Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-36 Worksheet 3-1 . Travel Time Savings from Intelligent Transaction Processing . . . . . . . . . . 3-38 Worksheet 5-1 . Value of Time—Sample Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-7 Worksheet 5-1 . Value of Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-8 Worksheet 5-2 . Operating and Ownership Cost—Sample Calculation . . . . . . . . . . . . . . . 5-21 Worksheet 5-2 . Operating and Ownership Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-22 Worksheet 5-3 . Accident Cost—Sample Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-48 Worksheet 5-3 . Accident Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-49 Worksheet 5-4 . User Cost for Project Management Options—Sample Calculation . . . . . 5-63 Worksheet 5-4 . User Cost for Project Management Options . . . . . . . . . . . . . . . . . . . . . . . . 5-64 Worksheet 6-1 . Calculation of Time-Savings Benefits When Hourly Volumes Are Known . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-69 user and non-user benefit analysis for highways xvii © 2010 by the American Association of State Highway and Transportation Officials. All rights reserved. Duplication is a violation of applicable law. benefit–cost analyses. These spreadsheets are electronic versions of the calculation worksheets in the manual. The analyst can choose to examine just user benefits, non-user benefits or both. In addi- tion, experience with the use of the Wizard by the research team and planners in the field has been exploited to improve the Wizard interface and add more flexibility to characterize highway projects. • Presentation Materials. Microsoft PowerPoint slideshows that can be easily customized are provided to help practitioners prepare presentations about the results of benefit–cost analyses of highway projects. The slideshows complement the guidebook and can be used for presentations to decision- makers, the public, and the media. A library of relevant, royalty-free images for use in presentations and documents is also provided. • A Resource Library. The CD-ROM contains resources to support practitioners as they evaluate the costs and benefits of highway projects. These resources include a glossary of terms used in the manual, a list of transportation organizations and website links where additional data may be found for benefit–cost analyses, and a list of websites that contain useful electronic maps and geographic information systems data. Preface This document updates and expands the American Association of State Highway and Transportation Officials (AASHTO) User Benefit Analysis for Highways, also known as the Red Book. This AASHTO publication helps state and local transportation planning authorities evaluate the economic benefits of highway improvements. This update incorporates improvements in user-benefit calculation methods and, for the first time, provides guidance for evaluating important non-user impacts of highways. Previ- ous editions of the Red Book provided guidance regarding user benefit measurement only. This update provides a framework for project evaluations that accurately account for both user and non-user benefits. The preparation of this update was done on behalf of the National Academy of Sciences, National Cooperative Highway Research Program (NCHRP) under project Number 02-23. This project is supported by an agreement between NCHRP and the Federal Highway Administration, the American Association of State Highway and Transportation Officials, and the National Academy of Sciences. The prime contractor for the research is ECONorthwest. iv user and non-user benefit analysis for highways © 2010 by the American Association of State Highway and Transportation Officials. All rights reserved. Duplication is a violation of applicable law. Foreword This manual and accompanying CD-ROM provide a valuable resource for people who analyze the benefits and costs of highway projects. These analysts have the difficult and often cumbersome respon- sibility of performing complex benefit–cost calculations and presenting the results to decision makers, the media, and the public. It has been the practice of the American Association of State Highway and Transportation Officials (AASHTO) to publish materials to support transportation planners in state, regional, and local governments who evaluate highway investments. This manual is the merger of two, related research efforts that should simplify the efforts of these planners. The first of these efforts, NCHRP Project 02-23, “User Benefit Analysis for Highways,” was conducted by the research team of ECONorthwest, in association with Kittelson & Associates, Inc., and Parsons Brinckerhoff, Inc. This effort yielded a major update of the original, 1977 AASHTO user benefit manu- al. The update incorporated new theory, new measurement methodologies, and new procedural guid- ance for the measurement of user benefits associated with highway improvements. It also introduced a CD-ROM containing the manual itself, worksheets and a software “Wizard” for guiding the analyst through the user benefit measurement process. The user benefit manual was adopted and published by AASHTO in 2003, and is commonly referred to as the “Red Book”. In response to requests by users of the Red Book, a second research effort was undertaken as an exten- sion of NCHRP Project 02-23. It is entitled “Non-User Benefit Analysis for Highways: A Supplement to AASHTO’s User Benefit Analysis for Highways” and was completed in 2007. Its purpose was to add non-user benefit measurement capability to the user-benefit capabilities of the AASHTO Red Book. This project was supported by an agreement between NCHRP and the Federal Highway Adminis- tration, the American Association of State Highway and Transportation Officials, and the National Academy of Sciences. The research team was lead by ECONorthwest, with assistance from Kittelson & Associates. Inc. By combining these two, related resources, practitioners now have a single, integrated resource to assist in evaluating highway improvements that incorporates both user and non-user benefits. The theory and methods for estimating the benefits and costs of highway projects are presented in an integrated fash- ion, first for user benefits and then for non-user benefits. The CD-ROM contains an electronic copy of this manual in Portable Document Format (PDF). It also contains practical materials and resources for conducting and presenting benefit–cost analyses of highway improvements. These resources include the following: • Analytical Tools. An interactive Microsoft Excel “wizard” is provided. This wizard takes the user through a series of dialogs where information about a project is collected and then calculates and presents the results of a benefit–cost analysis in a printable format. A series of Microsoft Excel spreadsheets also are included to help analysts organize data and make calculations to carry out user and non-user benefit analysis for highways iii © 2010 by the American Association of State Highway and Transportation Officials. All rights reserved. Duplication is a violation of applicable law. benefit–cost analyses. These spreadsheets are electronic versions of the calculation worksheets in the manual. The analyst can choose to examine just user benefits, non-user benefits or both. In addi- tion, experience with the use of the Wizard by the research team and planners in the field has been exploited to improve the Wizard interface and add more flexibility to characterize highway projects. • Presentation Materials. Microsoft PowerPoint slideshows that can be easily customized are provided to help practitioners prepare presentations about the results of benefit–cost analyses of highway projects. The slideshows complement the guidebook and can be used for presentations to decision- makers, the public, and the media. A library of relevant, royalty-free images for use in presentations and documents is also provided. • A Resource Library. The CD-ROM contains resources to support practitioners as they evaluate the costs and benefits of highway projects. These resources include a glossary of terms used in the manual, a list of transportation organizations and website links where additional data may be found for benefit–cost analyses, and a list of websites that contain useful electronic maps and geographic information systems data. Preface This document updates and expands the American Association of State Highway and Transportation Officials (AASHTO) User Benefit Analysis for Highways, also known as the Red Book. This AASHTO publication helps state and local transportation planning authorities evaluate the economic benefits of highway improvements. This update incorporates improvements in user-benefit calculation methods and, for the first time, provides guidance for evaluating important non-user impacts of highways. Previ- ous editions of the Red Book provided guidance regarding user benefit measurement only. This update provides a framework for project evaluations that accurately account for both user and non-user benefits. The preparation of this update was done on behalf of the National Academy of Sciences, National Cooperative Highway Research Program (NCHRP) under project Number 02-23. This project is supported by an agreement between NCHRP and the Federal Highway Administration, the American Association of State Highway and Transportation Officials, and the National Academy of Sciences. The prime contractor for the research is ECONorthwest. iv user and non-user benefit analysis for highways © 2010 by the American Association of State Highway and Transportation Officials. All rights reserved. Duplication is a violation of applicable law.