SP12 - Travel behaviour change projects

Introduction

These procedures provide a method of evaluating the economic efficiency of travel behaviour change (TBhC) projects. TBhC projects generally employ education, information and marketing based approaches to achieve voluntary changes in the travel behaviour of individuals.

These procedures may be used to evaluate the following types of TBhC projects:

• community based initiatives, eg travel awareness campaigns, ride share
• household-based initiatives, eg personalised marketing, living neighbourhoods
• school travel initiatives (school travel plans)
• workplace based initiatives (workplace travel plans)
• substitutes for travel, eg teleworking.

The procedures do not cover the following types of activity even though they may be included within the definition of travel behaviour change in some countries:

• Travel demand management planning for special events. This is considered to be the responsibility of the sponsoring organisation and local authorities.
• Mobility management centres (European model) are a one stop shop designed to promote and inform the public about environmentally-friendly and safe transport options, selling passenger transport tickets and renting cycles and for individuals seeking advice on their travel options, such as passenger transport, car pooling, car sharing clubs. Essentially, such a centre is a means for delivering components of TBhC programmes rather than a TBhC programme in itself.
• Freight management, logistics or any other possible action to change the travel behaviour of commercial vehicle operators or fleets.

The Land Transport New Zealand/EECA Travel behaviour change guidance handbook (2004) provides further information on development, evaluation and monitoring of TBhC proposals.

The calculation of the benefit cost ratio (BCR) in this simplified procedure assumes that:

1. A 10 percent discount rate and 10 year evaluation period are used.
2. The worksheets assume that projects adopted will be completed in the first year and will be in service by the start of year 2.
3. All costs are exclusive of GST.

Note: In cases where the above assumptions are not appropriate, either the simplified procedure should be modified or full procedures used.

Summary of analysis of chosen option

Explanation sheet for worksheet 1

Worksheet 1 identifies the TBhC project, provides a link to the proposal information recorded via LTP online, and summarises key economic evaluation inputs and outputs.

1. Enter the general information including project location
2. Enter the reference and date to the project entry in LTP online
3. Enter the present value cost of the project, which is estimated on worksheet 3
4. Enter information about the timing of the project
5. Enter the information used to select the most appropriate default diversion rates and composite benefit values in worksheets 4 and 5
6. Enter the present value benefits from worksheet 5, enter update factor if necessary (from appendix A12 of volume 1), calculate updated present of benefits
7. Divide by the present value of benefits from step 6 by the present value of costs from step 2 above to determine the benefit cost ratio
8. Record other economic evaluation information as appropriate.

Worksheet 1- Summary of analysis of chosen option

Project description profile

Explanation sheet for worksheet 2

Separate project description profile sheets are provided for different types of TBhC projects as follows:

• Worksheet 2A Workplace travel plans
• Worksheet 2B School travel plans
• Worksheet 2C Household and community based initiatives

Select the form that is relevant for the TBhC project type that is being evaluated and complete this form.

Information recorded in worksheet 2 is used for:

• Determining and confirming the diversion rate profile for the project
• Post-implementation analysis of contributing factors to TBhC project diversion rates and the success or failure of the project

For TBhC project types other than the three for which sheets are provided, select the most applicable project description profile and record the relevant information, or use it as a guide and record corresponding information on a separate sheet.

Worksheet 2A - Project description profile

Worksheet 2B - Project description profile

Worksheet 2C - Project description profile

Costs of the option

Explanation sheet for worksheet 3

Worksheet 3 is used for calculating the present value cost of a travel behaviour change project.

1. Calculate the cost of the option. Attach the estimate sheet to this worksheet. Separately identify the estimated costs for project development (investigation/design) and those for implementation. Multiply the costs by the discount factor 0.91 to get the present value. When conducting initial indicative evaluations for project development funding for workplace and school travel plans obtain a cost estimate from past experience or judgement. The implementation cost estimate will be refined and the evaluation reconfirmed based on the completed plan before implementation funding is approved. Consider whether a composite evaluation may be required. A composite evaluation is required for a package of measures involving travel behaviour change initiatives if the cost of supporting infrastructure components (such as walk/cycle paths or minor road improvements) or passenger transport components are over $150,000. A composite evaluation is optional if the cost of supporting infrastructure or passenger transport improvement components are under $150,000. This supersedes the advice given in the Land Transport New Zealand Travel behaviour change guidance handbook.
2. Estimate the cost of annual expenditure required to maintain the benefits of the TBhC project over the remainder of the evaluation period following completion of project based on local experience and knowledge. For household/community based initiatives this is generally zero unless the proposal contains specific plans for follow-up measures. For workplace and school travel plans it is likely that some ongoing maintenance expenditure will be required to maintain benefits over the ten year evaluation period.
3. Calculate the present value of any periodic maintenance expenditures. The dollar amount in future years will need to be weighted by the present worth factors in the table below. Enter the years and the amounts in the table.
4. Sum (a) + (b) + (c) to get total $__________ A and enter in worksheet 1.
5. Estimate monitoring costs and calculate the present value to obtain B and enter in worksheet 1.

Present worth factors - for 10 percent discount rate

Worksheet 3 - Cost of the option

Expected diversion rate

Explanation sheet for worksheet 4

Worksheet 4 is used for selecting the appropriate default diversion rate.

The tables show the diversion rates between modes that were used to derive the composite benefit values in worksheet 5. These are the most appropriate default diversion rates based on experience to date. They are not used directly when conducting TBhC evaluations as the composite benefit values already take account of these default diversion rates.

If analysts consider they have strong reasons why a different diversion rate is more appropriate for their situation they can interpolate a composite benefit value (based on the values in worksheet 5 and their project situation compared with the default diversion rates shown here) for workplace travel plans, or use a computer spreadsheet programme (available from Land Transport NZ) to forecast a diversion rate and calculate a composite benefit value for any TBhC project.

When conducting initial indicative evaluations for project development funding for workplace and school travel plans the diversion rate should be selected based on the proponents knowledge of the organisations involved and the area. For the final evaluation for implementation funding the diversion rate will be based on the actual features of the completed plan.

Workplace travel plans

There are several default diversion rate profiles for workplace travel plans. The appropriate profile is identified by determining a score for the project based on the anticipated or proposed measures to be included in the workplace travel plan.

The standard diversion rate values are applicable in most situations where no significant public transport measures are included in the workplace travel plan. The alternative with public transport service improvements diversion rate values are applicable when significant public transport service improvements (including company provided transport), subsidy schemes, or other similar measures (covered by the last two questions in the scoring table) are part of the workplace travel plan.

School travel plans

There are only two default diversion rate profiles for schools, one for primary and another for intermediate and secondary schools.

Household and community based initiatives

The standard diversion rate value is applicable for most projects.

The low diversion rate is applicable in situations where:

• The proposal will implement fewer measures than usual household based programmes, eg a community travel awareness campaign on its own would not achieve the standard diversion rate
• Public transport services and cycling/walking facilities in the area are poor and no significant changes to these are envisaged as part of the TBhC proposal.

Worksheet 4 - Expected diversion rate

Benefit of the project

Explanation sheet for worksheet 5

Worksheet 5 is used for calculating the present value of benefits for the TBhC project.

Select composite benefit value

The tables on worksheet 5 contain composite benefit values for a range of TBhC project types and situations. This composite benefit value includes benefits to the person changing their travel behaviour as well as benefits to remaining road users and the general community, such as reduced health costs and accident risk, decongestion and environmental benefits. The exact composition depends on the nature of the TBhC project being undertaken. The composite benefits also incorporate the default diversion rate assumptions for each TBhC project type (as shown on worksheet 4) as well as the average trip length for each mode affected by the project.

Select and circle the composite benefit value that is applicable to the proposed TBhC project from the appropriate table. Composite benefit values are the average annual benefit for all people in the workforce, school or community targeted by the TBhC project (and take account of the proportion that do not participate or change their travel behaviour).

Determine target population

The target population is the TOTAL population of the workplace, school, or community in which the TBhC project is being implemented. It includes the people who do not participate in the project and those who participate but do not change their behaviour.

Calculate present value of benefits

1. Multiply the composite benefit by the target population to determine the annual benefit.
2. Multiply the annual benefit by the discount factor for years 2 to 10 to calculate the present value of benefits over the evaluation period.

Worksheet 5 - Benefits of the project