2.16 Other inputs to funding allocation process

Introduction

As noted in chapter 1 economic efficiency is only one of three assessment factors considered in Land Transport NZ's funding allocation process. This section provides some advice on the New Zealand Transport Strategy objectives to minimise double counting of benefits.

Economic development

Impacts to be considered should relate to enhancement of the economic wellbeing of New Zealanders - both the level of wellbeing and economic growth, including the potential for future growth. Impacts include:

• wider economic impacts, eg, facilitating transport
• impacts on land use
• travel time between economic centres
• congestion
• travel time reliability
• effect on freight
• energy efficiency.

In a limited number of circumstances, transport projects may have benefits to the economy over and above those included in the economic efficiency calculation.

Such benefits might result from:

• increased competition in imperfect markets, either for final products or factors of production (particularly labour and land
• economies of scale in production leading to reductions in production costs

Public transport improvements are likely to impact most on labour markets and land use activities.

Safety and personal security

Road-safety projects, some modifications to the road network and projects that reduce vehicle travel can contribute significantly to road-safety improvements. Passenger transport, cycling and walking improvements should specifically address safety and personal security issues, as well as effects on vulnerable users.

Accessiblity and mobility

Accessibility for personal activities refers to the ability to reach desired goods, services and activities. For goods movement, accessibility can be defined as the ability to reach suppliers or buyers of products.

Mobility refers to the ease of travel. Mobility improvements can result in additional travel that would not otherwise occur, particularly by people who are transport disadvantaged. However, mobility is not the only means of improving accessibility.

TDM programmes can significantly improve access and mobility by increasing transport availability options and coordinating travel alternatives, eg, improved transport interchange.

Key determinants of accessibility include:

• the performance of the transport system - for a given land-use pattern, quicker, more reliable and/or lower-cost transport alternatives provide greater accessibility
• land-use patterns, including the density and mix of development - for a given level of transport performance, a more dense arrangement of land uses means greater accessibility because more activities can be reached within a given distance/time (the mix of land uses also influences accessibility).

Various measures of accessibility are:

• the number of jobs (or other opportunities accessible within X minutes of the average person in a region
• number of residents accessible within X minutes of a typical employment site

Accessibility can also be distinguished by travel mode, income or other factors. Potential benefits of improved accessibility include:

• As a goal in itself. Providing individual or community accessibility to desired activities is often a fundamental objective for the transportation system.
• Greater economic activity. Businesses benefit from easier access to suppliers, a larger labour pool and expanded consumer markets. These factors can reduce transport costs both for business-related passenger travel and the movement of goods. Access to larger worker numbers, consumers and suppliers also provides greater choice and allows greater specialisation, thus increasing business efficiencies.
• Improved land-use patterns. Interaction between accessibility and land use means the relationship between transport improvements and accessibility gains is complicated. For example, the construction of a new road immediately improves accessibility and may lead to significant land development in its proximity. Eventually, the traffic generated by new developments can cause significant congestion, reducing the original accessibility benefits provided by the road.

While making the transport system more efficient, road tolling and other price-based TDM strategies may have a negative impact on mobility.

Public health

Improvements to public health can occur through increased physical activity and fitness, and through reducing exposure to pollutants or injury-causing activities.

Walking and cycling can have significant health benefits through increased exercise levels. However, this could be offset by an increased exposure to pollutants if the activity involves sharing road space.

Environmental sustainability

Environmental sustainability can be defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Projects that contribute directly to environmental sustainability are those that reduce noise and other pollutants, eg, measures that manage or reduce vehicle use. Evaluation of environmental effects (monetised and non-monetised) is described in appendix A8 and A9.

Sustainability of project performance

Sustainability of project performance describes how project benefits are maintained over time. Some projects have immediate impacts, while others may take years to have significant effects.

In particular, the effects of TDM projects tend to change over time. In general, programmes that incorporate financial incentives, improve transport choice or involve land use management may become more effective over time as consumers incorporate them into long-term decisions. Conversely, the effects of travel behaviour-change programmes, which appeal to people's good intentions, tend to decline over time as promoters and participants lose interest.

Integration

Proposals should endeavour to improve the arrangement of land use, walking and cycling networks, public transport, and local and strategic roads.