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Title:

Urban Consolidation Center Evaluation According to the Kaldor–Hicks Criterion

Accession Number:

01661232

Record Type:

Component

Abstract:

Urban Consolidation Centers (UCC) cases, like in Tenjin, Japan, or in Lucca, Italy, have shown vehicle optimization and a decrease in environmental and social impacts of freight transportation activities. Nonetheless, the financial sustainability is a barrier for their operation, especially because it is not common to consider environmental and social impacts in cost-benefit analysis. There is a lack in literature about economic evaluation of UCC addressing stakeholders´ cost-benefit. The objective of this paper is to present an economic evaluation of UCC incorporating some environmental and social benefits (e.g. reduction of traffic congestion and decrease of emissions of particulate matter emissions) and cost-benefit for carriers, receivers, local population and government. The Kaldor-Hicks criterion was used to compose the economic assessment. This methodology was applied in a case considering a neighborhood of São Paulo city, logistics costs based on market information and projects conducted in Brazil, and operational results reported in literature. The costs directly related to UCC operations were 13.7% higher than the baseline scenario. However, when incorporating benefits for stakeholders using the Kaldor-Hicks criterion, the analysis demonstrated that the implementation might be socially desirable, as the benefits might compensate the additional operating costs. This new approach of analyzing the UCC economic viability, monetizing and incorporating environmental and social benefits for stakeholders, might support decision makers to optimize freight transportation system while reducing negative effects of this activity.

Supplemental Notes:

This paper was sponsored by TRB committee AT025 Standing Committee on Urban Freight Transportation.

Report/Paper Numbers:

18-02535

Language:

English

Authors:

Isa, Selma Setsumi
Lima Jr, Orlando Fontes
Ribeiro, Karisa Maia

Pagination:

8p

Publication Date:

2018

Conference:

Transportation Research Board 97th Annual Meeting

Location: Washington DC, United States
Date: 2018-1-7 to 2018-1-11
Sponsors: Transportation Research Board

Media Type:

Digital/other

Features:

Figures; References; Tables

Geographic Terms:

Sao Paulo (Brazil)

Subject Areas:

Economics; Freight Transportation; Planning and Forecasting; Terminals and Facilities

Source Data:

Transportation Research Board Annual Meeting 2018 Paper #18-02535

Files:

TRIS, TRB, ATRI

Created Date:

Jan 8 2018 10:36AM