THE ANNUAL COST OF HIGHWAYS

A METHOD FOR DETERMINING ANNUAL COST OF HIGHWAYS HAS MANY USES IN HIGHWAY ECONOMICS, INCLUDING A COMPARISON OF PAVEMENT TYPES. ECONOMIC YARDSTICK METHODS FOR DETERMINING THE ANNUAL COST OF HIGHWAYS ARE REVIEWED. IT IS RECOMMENDED THAT AASHO ADOPT A FORMALIZED PROCEDURE FOR DETERMINING THE ANNUAL COST OF HIGHWAYS. THIS WILL BE OF MATERIAL ASSISTANCE IN THE SOLUTION OF THE BENEFIT-COST RATIO WHICH CAN BE USED TO MEASURE THE RELATIVE VALUE TO THE PUBLIC OF THE VARIOUS PROJECTS IN THE SELECTION OF A CONSTRUCTION PROGRAM. SUCH INFORMATION WILL BE OF GREAT AID IN MAKING A CHOICE BETWEEN ALTERNATE HIGHWAY LOCATIONS, AND ALSO AS A CHECK ON THE DESIGN OF A PROJECT. IF THE BENEFIT-COST RATIO IS LESS THAN ONE, THE ANNUAL BENEFITS OF THE PROJECT ARE NOT ENOUGH TO JUSTIFY THE ANNUAL COST AND THE NEED FOR A LESS EXPENSIVE DESIGN IS INDICATED.