Eval Socio-Economical - Dossier H - L15E

These are notes taken from reading the document "Eval Socio-Economical - Dossier H - L15E.pdf", containing the details of the socio-economical evaluation for Line 15 Est of the Grand Paris Express.

Introduction

This documents refers to an updated version of the CBA that was done years before. This refers to 2020. Some updates include:

• New structures
• Different location of some facilities
• ...

The CBA was then subjected to the following updates:

• Updated costs
• New traffic previsions based on MODUS 3.1 model
• Integration of GPE impact on urban economy
  Spoiler: the public interest was confirmed.

2 - Objectives and principles of socio-economical evaluation

Costs and benefits are compared on an annual basis.

Quantifiable:

• Directly
  • Investment cost
  • Operational cost
• Indirectly
  • Value of time
  • ...

Prices need to be actualized --> Net Present Value (see also 11. Valutazione degli interventi sui sistemi di trasporto#Valore attuale).

A comparison is made between 2 scenarios:

• Present scenario - No project
• Project scenario - Project becomes operational

Net Benefits ($\text{advantages}-\text{costs}$) are:

• Net Present Value
  • $\sum {\displaystyle \frac{(B-C{)}_n}{(1+a{)}^n}}$ where:
    • $B:$ Benefits
    • $C:$ Costs
    • $n:$ The single year we are referring to in the sum
    • $a:$ Discount rate
• Net Present Value per invested euro
• Internal Rate of Return (IRR) - discount rate so that net present value is 0

Calculation is made adding a 25% to investment cost.

Elements considered in the socio-economical evaluation

Quantifiable impatcts, commercial or not commercial, for the society are presented here. Some are very specific:

1. Transportation effects
   • Time variation and cost variation for passengers using the new lines (present, transferred and induced)
   • Time gains and cost variation for private transportation users, whose condition may vary due to movement to the new project
2. Improvement of service quality in terms of regularity and comfort
   • Automatic metro will offer a high quality service.
   • Thanks to less strain on other lines and on road networks highly congested, all users will feel improvements in comfort and regularity
3. Environmental gains
   • Car use reduction in favor of public transportation will bring a reduction in several forms of pollution associated to car traffic both for global pollution (greenhouse gases emission) and for local pollution (PM, noise, road safety,...). For each of these externalities is possible to assess a cumulative economic balance.
   • Emissions during construction and new earnings coming from infrastructure where included in the evaluation
4. Urban gains
   • The new metro will allow for a more compact development --> this brings smaller costs to society than a more sparse development The following factors where considered:
     • Costs connected to land usage in the suburbs, based on monetary value citizens associate with these spases
     • Investments for roads and services extension in these areas
     • Additional costs for management of public services and maintenance of roads and services caused by urban sprawl
5. Business effects
   • New jobs created thanks to the project, other than construction site jobs
     • Greater attractiveness of Ile-de-France - International jobs
     • More occupation and reduction of structural unemployment - Better job market due to reduced transportation costs necessary for jobs
     • Increase in jobs offer by regional businesses

10 - Balance of cost-benefits