Consumer surplus estimation comparisons on a Korea highway network master plan

• Published in: Procedia computer science Vol. 220; pp. 660 - 666
• Main Authors: Kim, Chansung, Oh, DongIk, Park, Jongchul, Kang, Dongwoon
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 2023
• Subjects: consumer surplus; logsum; travel time saving; consumer surplus; travel time saving; logsum
• ISSN: 1877-0509; 1877-0509
• DOI: 10.1016/j.procs.2023.03.085

In the cost–benefit analysis of transportation investment, although the benefit estimation method due to the effect of travel time saving has been widely used, several limitations with the method have been pointed out in a number of studies. As an alternative, a logsum-based benefit calculation has been widely adopted, with most of the research focused on urban transportation. Therefore, it is rarely applied to interregional transportation. In this study, we applied a logsum-based approach to the calculation of benefits for expressway road projects in Korea's long-term transportation plan. To calculate the logsum, this study used input data from both the mode choice and destination choice models, finding that an analysis of the feasibility of inter-regional road investment was possible. Various studies have calculated the benefits based on one of the two models. The two methods have similar formulas; however, varying results were derived due to differences in the application of formulas for parameter estimation and benefit estimation. In conclusion, the proposed methods are expected to enable a more comprehensive evaluation of the transport system. Looking at more detailed research results, the logsum based on the mode choice model had great benefits in the Seoul metropolitan area where demand was high; however, the logsum of the destination-based model showed a large difference in distribution of benefits evenly by various metropolitan areas. On the other hand, it was found that the traditional reduction of travel time was much less by region than the logsum methods, but the effect was large in the metropolitan area. From the perspective of the theoretical and practical consumer surplus analysis, we suggest open discussions regarding which method to choose when calculating benefits from the mode choice logsum model, the destination logsum model and travel time savings method.