Cost and benefi ts in the proposed approach from reducing car use (continued).


In addition, this might lead to a situation where it is much easier to achieve high benefi ts when reductions in car kilometres are on congested roads. Thus car clubs in urban areas would tend to outperform rural schemes. A parallel problem has been dealt with by DfT by using what are called “national equity values” for travel time. The problem is that if time savings were valued locally, road schemes would tend to have much higher BCRs in areas of high income drivers, because the value of time is related to income. In order to avoid this, the value of time is calculated on a national basis, reducing the real value in areas such as the South East, and boosting it in the North East.


Similar considerations apply in this case: the use of averages will have the effect of a more even spread of benefi ts with the national total being robust.


The urban/rural issue is refl ected in the proposed appraisal by varying the numbers of members per car, assumed to be lower in rural areas. In some cases (for example Derbyshire) which have a strong rural content, specifi c estimates based on other schemes have been used in the bid document. Where this is available, the specifi c values can be used and this alters the results in terms of Net Present Values (NPVs) and Benefi t:Cost Ratios (BCRs). This is illustrated clearly in the range of values in the summary table for each of the Tier 1 schemes. Simple notes indicate where changes have been made and why.


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