BENEFIT OF THE IMPROVEMENT OF INFRASTRUCTURE ENGINEERING TECHNOLOGIES AND OPTIMAL EXPENDITURE ALLOCATION

Abstract

 Technological developments in infrastructure asset management fields are continuously improving. The technological innovations will contribute to efficient maintenance works and longing the life or duration of infrastructure stock. The aim of this paper is to propose a methodology for assessing benefit of the improvement of the infrastructure asset management technologies and deriving policy function regarding cost allocation. We build a dynamic optimization model which handles deterioration process of the stock and maintenance cost explicitly. We furthermore conduct some numerical analyses about two types of technological innovations, lifecycle extension of infrastructure stock and unit cost reduction of maintenance. The results shows not only the benefit of the both technological innovations but also changes in optimal cost allocation policies.