Abstract
It is necessary to use a suitable model that represents induced traffic generated by new road in benefit estimation of road investment. In this paper we forecast the traffic flow and estimate the user benefits of a new road with combined network equilibrium model that can represent the induced traffic. This model gives consistent framework of demand forecasting and benefit estimation based upon economic theory. The model shows that the induced traffic by the new road is small in view of the overall area, but it affects heavily the traffic situation of new road and estimation of user benefit by comparison of traditional fixed demand model; traditional model overestimates the user benefit of road in-vestment in our application.
