Economic Evaluation

I spent last week at the Asian Development Bank (ADB) headquarters in Manila, in the Philippines, where we are starting on an exciting but humbling project: developing a more comprehensive framework for transport project evaluation. Among other factors, this project will develop better methods for incorporating social equity impacts into transport planning. This is important in any community, and particularly in developing countries where many people are extremely poor. What transport policies and planning practices respond to their needs?

Time is a limited and valuable resource. As much as possible, people should spend the precious hours of their lives in the most satisfying and productive possible ways. This has important implications for transportation planning, since most people spend a significant amount of time in transport, and travel time savings are often the greatest projected benefits of transport projects such as roadway and transit service improvements.

We live in a wonderful age! Scientists have proven that many simple, affordable, and often enjoyable activities make us healthier and happier: breath fresh air, avoid dangerous driving, be physically active, eat fresh fruits and vegetables, maintain friendships, play games, and avoid excessive stress. Even chocolate, red wine and sex are perscribed, in moderation, for health sake.

The current U.S. healthcare reform proposal is often described as costing a trillion dollars. That will make it difficult to pass. However, the same program could legitimately be described as costing residents just cents per day (or, “less than a cup of coffee”), which would enhance its chance of success (a trillion dollars over ten years is $100 billion annually, about $320 annually per capita, or less than $1 per day, which can legitimately be called “cents per day”).