Minnesota Department of Transportation

511 Travel Info

Planning & Programming

 

banner

Benefit-Cost Analysis for Transportation Projects

APPENDIX A

MnDOT Office of Transportation System Management
Benefit-Cost Analysis Standard Value Tables - July 2015

Table A.1

Recommended standard values for use in B/C analysis in SFY2016

Variables
Current Value

Real Discount Rate (1)

1.7%

 

 

Auto value of travel time savings per person-hour (2)

$17.00

Truck value of travel time savings per person-hour (2)

$27.90

 

Auto per-mile operating and emissions costs

 

 

Auto variable vehicle operating costs (3)
$0.25
 

Auto climate and health related emissions costs (4)

$0.03

 

Auto total operating & emissions costs (dollars per mile)

$0.28
 

Truck per-mile operating and emissions costs

 

 

Truck variable vehicle operating costs (3)
$0.83
 

Truck climate and health related emissions costs (4)

$0.26
 

Truck total operating & emissions costs (dollars per mile)

$1.09
 

MnDOT Crash Values (5)

Per crash

 

Fatal

$10,600,000

 

Injury Type A

$570,000

 

Injury Type B

$170,000

 

Injury Type C

$83,000

 

Property damage only

$7,600

 

(1) Determined as a five-year average for real interest rates (market rate less inflation) on 30-year Treasurys.
(2) Adapted from US DOT's "Revised Departmental Guidance on Valuation of Travel Time in Economic Analysis" published July 9, 2014, with Minnesota earnings rates.
(3) Updates cost levels in Univ. of Minnesota report "The Per-Mile Costs of Operating Automobiles and Trucks" published in 2003. Variable costs include fuel (real price forecast for benefit-cost analysis period midpoint), maintenance, tires, repair and depreciation.
(4) Applies US DOT (National Highway Traffic Safety Administration) dollars-per-ton monetization factors to average vehicle emission rates modeled by EPA to account for the social cost of carbon (at benefit-cost analysis period midpoint) and health damage from the criteria pollutants of volatile organic compounds (ozone precursor), nitogen oxides, particulate matter (PM2.5), and sulfur dioxide.
(5) Reflects Minnesota's three-year crash history and procedures contained in "Guidance on Treatment of the Economic Value of a Statistical Life (VSL) in U.S. Department of Transportation Analyses— 2014 Adjustment" published June 13, 2014, and based on a VSL of $9.4 million in 2014$.

 


Table A.2

Recommended remaining capital value factors for use in benefit-cost analysis in SFY 2016

 

Expected life (years)>>

25

30

35

40

50

60

100

Analysis:  20 years

0.24

0.39

0.50

0.59

0.70

0.77

0.91

Analysis:  25

0.00

0.20

0.35

0.46

0.61

0.70

0.88

Analysis:  30

0.00

0.00

0.18

0.32

0.50

0.63

0.85

 

Example: $10 million spent on structures (60 years expected life) for an analysis period of 25 years has a remaining capital value of 0.70 x $10 million ($7.0 million) in the last year of the analysis period. (Factors reflect a real discount rate of 1.7%).