Transportation represents an area that involves significant problems in Atlanta, GA, which requires consideration of capital projects to improve transport circulation in the city. A critical traffic issue in the region is related to traffic volumes, which negatively impact the local population and tourists. Furthermore, the substantial traffic determines the increased risk of accidents and significantly complicates the region’s logistics. In this regard, the proposed capital project includes the construction of a bypass in the county surrounding Atlanta, at a distance of 20 miles from the city center. Implementing this project will reduce traffic volumes, positively impacting the amount of traffic in Atlanta and reducing the amount of time residents spend on transportation. In addition, the construction of an additional traffic route surrounding the city will significantly reduce the number of accidents, which will also have a positive financial impact on the region. Therefore, a capital project involving the construction of a new highway surrounding the city is promising in the context of reducing a range of transportation issues.
County board members should consider a nine-step cost-benefit analysis (CBA) plan to analyze a capital project properly. The first step involves presenting a set of alternative projects, including, for instance, highway options at distances of 5, 10, and 15 miles from downtown Atlanta. In this case, considering the alternative projects would allow the authorities to evaluate the rationality and potential benefits of the suggested project (Mishan & Quah, 2021). The next stage of CBA requires a focus on the project’s benefits to residents of Georgia and other states who travel in the Atlanta area. The third stage is to identify the impacts and measurement indicators. In this regard, assessing the positive effects of reducing traffic in downtown Atlanta and highlighting key indicators will allow the County Board to properly understand the project’s positive impact on the city and county. The fourth stage involves quantifying the project’s estimated effects, which includes assessing traffic reductions and related problems of different natures. In general, these stages consider the basic information necessary for the adoption by the members of the legislative body.
An essential stage of the cost-benefit analysis requires the translation of all project impacts into monetary terms. It involves translating the positive impacts, which include facilitating transportation for city and county residents and other citizens and reducing accidents, into dollar values. This step is crucial for consideration by County Board members since it allows a direct assessment of the financial profitability of the capital project (Mishan & Quah, 2021). Then, it is necessary to discount the benefits and costs to allow an estimate of the present value. A critical step is to compare benefits to costs, given the characteristics of the proposed alternatives. It will enable county authorities to evaluate the most beneficial options for the region’s residents. The next step is to perform a sensitivity analysis as it allows the evaluation of the suitability of the discount rates, the benefits, and the costs of the capital project (Mishan & Quah, 2021). In addition, it is essential to recommend the most promising alternatives to the project. Overall, CBA involves evaluating several factors that allow the identification of the most beneficial capital projects.
Suggesting a project designed to reduce Atlanta’s transportation problems to the legislative body focuses on opportunities to reduce the amount of traffic around the downtown area and rely on a 9-step CBA. In this regard, conducting this analysis is essential for the County Board members to correctly estimate the project’s costs and benefits. Furthermore, this analysis involves considering and analyzing alternatives, which enables the most appropriate decision-making regarding the financing of specific capital projects. In general, the Atlanta, Ga. additional county highway project is designed to benefit the residents and tourists of the city and county, and it considers several evaluation characteristics necessary to conduct a cost-benefit analysis.
Reference
Mishan, E. J., & Quah, E. (2021). Cost-benefit analysis. Routledge.