ECONOMIC EVALUATION OF HIGHWAY INVESTMENT NEEDS

FHWA has been required by Congress to prepare biennial reports on the condition of the U.S. highways and the need for highway investment since 1968. Although these needs reports have become more sophisticated with each edition, they still fall short of a full economic analysis of highway investment. The role that economic analysis might play in needs reports is explained, the use of economics in past reports is evaluated, the general categories of benefits and costs that should be considered are outlined, and quantitative benefit-cost evaluation for determining highway needs is illustated. (Author)