3.4 - Stages of analysis

3.4 - Stages of analysis

Introduction

At every stage of the economic efficiency evaluation, the analysis is carried out for the TDM proposal, the do minimum and any other options.

Stage Description See
1 Develop alternative TDM packages (including staging and sequence if appropriate).
2 Complete the proposal description: Describe the TDM package, the do minimum, and the alternatives and options considered volume 1, section 5.2
3 Select the evaluation method appropriate to the proposal section 3.14
4 Assess travel impacts:
  • target population
  • uptake
  • demand estimates and modal share.
 chapter 4
5 If there is service provider, determine service provider costs, service provider revenue, and the funding gap. chapter 6
6 Quantify the net costs to government. section 3.7
7 Quantify all national economic benefits and disbenefits that have monetary values. section 3.8
8 Describe, and quantify where possible, any significant non-monetised effects. section 3.8
9 List any national strategic factors relevant to the preferred option. If possible determine the monetary value(s) of any national strategic factors. section 3.8
10 Describe business benefits, equity impacts (particularly those relating to transport disadvantaged) and any other significant effects not covered in stages 7 and 8. section 3.3
11 Discount the service provider costs and funding gap (stage 4) and net costs to government (stage 5) over the period of analysis to obtain the present value (PV) of these costs. volume 1, appendix A1
12 Discount all monetised benefits (stage 6 plus stage 8 if monetised) over the period of analysis and sum them to obtain the present value of net national economic benefits. volume 1, appendix A1
13 Where options being evaluated are mutually exclusive, use incremental analysis to select the preferred option. volume 1, section 3
14 Determine the national benefit cost ratio (BCRN) and the government benefit cost ratio (BCRG). section 3.10
15 Perform sensitivity tests on the preferred option. section 3.12
16 If the present value of the net government costs is greater than $1 million, undertake a detailed risk analysis. chapter 8