A PROPOSAL OF DYNAMIC EVALUATION FOR ROAD NETWORK IMPROVEMENT INCORPORATING ENDOGENOUS DETERMINATION OF PROJECT COMBINATION AND PRIORITY

Abstract

Currently, road network improvement projects are independently evaluated by using the cost-benefit ratio which is calculated under a static network, referring to ‘Cost-Benefit Analysis Manual’ published by the Ministry of Land, Infrastructure and Transport (MLIT). However, the road improvement project should be dynamically evaluated by considering network externality caused by the order of individual project implementation. This study proposes a dynamic evaluation model for road network improvement that enables to endogenously determine an effective combination and priority of projects. Through a case study, an effectiveness of the proposed model is confirmed.