Benefit-Cost Analysis for Transportation Projects
Office of Transportation System Management
Benefit-Cost Analysis Standard Value Tables - July 2018
|Real Discount Rate (1)||1.2%|
|Auto value of travel time savings per person-hour (2)||$18.90|
|Truck value of travel time savings per person-hour (2)||$30.30|
|Transit passenger value of travel time savings per person-hour (2)||$17.60|
Transit driver value of travel time savings per person-hour (2)
|Auto per-mile operating and emissions costs||Auto variable vehicle operating costs (3)||$0.26|
|Auto climate and health related emissions costs (4)||$0.06|
|Auto total operating & emissions costs (dollars per mile)||$0.32|
|Truck per-mile operating and emissions costs||Truck variable vehicle operating costs (3)||$0.77|
|Truck climate and health related emissions costs (4)||$0.22|
|Truck total operating & emissions costs (dollars per mile)||$0.99|
|MnDOT Crash Values (5)||Fatal||$11,100,000 / crash|
|Suspected Serious Injury||$600,000|
|Suspected Minor Injury||$180,000|
|No Injury (Property damage only)||$7,200|
(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 on-road vehicle emission rates for Minnesota derived from EPA's 2014 National Emissions Inventory 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), nitrogen oxides, particulate matter (PM2.5), and sulfur dioxide.
(5) Reflects Minnesota's recent (two-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— 2016 Adjustment" published August 8, 2016, and specifying a VSL of $9.6 million in 2015$.
|Expected life (years)>>||25||30||35||40||50||60||100|
|Analysis: 20 years||0.22||0.37||0.48||0.56||0.67||0.74||0.88|
Example: $10 million spent on structures (60 years expected life) for an analysis period of 25 years has a remaining capital value of 0.67 x $10 million ($6.7 million) in the last year of the analysis period. (Factors reflect a real discount rate of 1.2%).