Environmental Parameter Values [PV4]

Transcription

1 Environmental Parameter Values [PV4]

2 Providing Feedback This draft document has been published for stakeholder feedback. Submissions are due Monday 9 February 2015 All submissions should be in writing and preferably ed to: NGTSM2014@infrastructure.gov.au Hard copy submissions can be sent to: NGTSM Steering Committee Secretariat National Guidelines for Transport System Management Commonwealth Department of Infrastructure and Regional Development GPO Box 594 CANBERRA ACT 2601 For enquiries please contact the NGTSM Steering Committee Secretariat: NGTSM2014@infrastructure.gov.au (02) Disclaimer This document is a draft for public comment. Please note that as a draft document it has not been approved by any jurisdiction, therefore should not be relied upon for any purpose. Until an approved revised edition is published in 2015, users should continue to be guided by the National Guidelines for Transport System Management released in Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia ii

3 Contents Environmental Parameter Values [PV4] Overview and scope of parameter values Environmental externalities Externalities estimates for passenger and freight transport (urban) Externalities estimates for passenger and freight transport (rural) Range of values User documentation Indexation of parameter values... 9 References Appendix A User documentation per environmental externality type* Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia iii

4 1. Overview and scope of parameter values At a glance Parameter values are important inputs to consistency in economic appraisal Environmental externality values - provided from the most recent Austroads values Guidance is provided for practitioners on the indexation of parameter values until these parameter values are revised. Overview This part of the NGTSM deals with the updating of parameter (unit) values for use by economic evaluation practitioners in Australia as at June 2013, as well as models to estimate vehicle operating costs (VOC) and, in turn, the calculation of road user costs (RUC) for the purposes of cost benefit analysis (CBA). The various methods used to estimate VOC and RUC are reviewed, including their technical basis as reported through various Austroads studies, and the need to provide models which possess the following attributes, and which can be applied and updated in a clear and consistent manner to: 1. better accommodate changes in vehicle technology and a changing vehicle fleet, including under different loading conditions and regulations 2. be amenable for application across networks subject to uninterrupted and interrupted/stopstart conditions 3. be capable of application to general cost benefit analysis studies at a network level and for major capital projects, including employing the results of traditional 4 5 stage transport models. Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia 4

5 2. Environmental externalities This section provides a series of look-up tables of environmental externality estimates in Australian dollars (per June 2013) for the following transport modes in urban and rural locations: road passenger: passenger cars, buses and coaches (one category) road freight: light commercial vehicles (LCV s), heavy vehicles rail passenger, freight (diesel and electric). These values were derived from the 2008 CE Delft study (CE Delft et al. 2011) on transport externalities for the EU27 countries, then updated and adjusted for Australian conditions in terms of factors such as population density, vehicle occupancy and gross national income per capita (PPP) 1. These data and the methodologies behind them are fully explained in Austroads (2014). In that study, average external costs were calculated for the following cost categories: air pollution greenhouse gas emissions noise pollution soil and water pollution biodiversity nature and landscape additional costs in urban areas (barrier effects) upstream and downstream costs. The externalities estimates for Australia as per June 2013 from Austroads (2014) are presented in Table 2.1 and Table 2.2 for passenger and freight vehicles in urban conditions, and Table 2.3 and Table 2.4 for passenger and freight vehicles in rural conditions. Guidance for the use of externalities values in project evaluation are contained in user documentation contained in Appendix A. 1 All externalities estimates were adjusted to June 2013 using average cost base data from CE Delft et al. (2011) across EU27 countries. Values were converted to AU$2008 from 2008 via the exchange rate (historical exchange rate data sourced from the RBA); adjusted from June 2008 to June 2013 values (AU$) using CPI (historical CPI data was sourced from the ABS for All groups); adjusted for Australia in terms of key factors per country and per mode (e.g. population density) using Australian population density data, PPP and vehicle occupancy; adjusted in terms of pkm and tkm weighted by country and mode to obtain one weighted average estimate for Australia; and values as per $/pkm and $/tkm per mode were then converted to $/vkt using Australian data. Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia 5

6 2.1 Externalities estimates for passenger and freight transport (urban) Table 2.1 and Table 2.2 contain externalities estimates for passenger and freight transport in urban conditions in Australia. These estimates are reproduced from estimates undertaken and are explained in detail in Austroads (2014). Table 2.1 Externality values (as per June $2013): Passenger transport (urban) Externality type Car Bus Rail $/1000pkm $/1000vkt $/1000pkm $/1000vkt $/1000pkm Air pollution GHG emissions (low cost scenario 25 per tco2e) Noise Soil & water Biodiversity Nature & landscape Additional urban Upstream & downstream Total Source: Austroads (2014). Table 2.2 Externality values (as per June $2013): Freight transport (urban) Externality type LCV HCV Rail $/1000tkm $/1000vkt $/1000tkm $/1000vkt $/1000tkm Air pollution GHG emissions (low cost scenario 25 per tco2e) Noise Soil & water Biodiversity Nature & landscape Additional urban Upstream & downstream Total Source: Austroads (2014). Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia 6

7 2.2 Externalities estimates for passenger and freight transport (rural) Table 2.3 and Table 2.4 contain externalities estimates for passenger and freight transport in rural conditions in Australia. These estimates are reproduced from estimates undertaken and explained in Austroads (2014). The externalities estimates for rural conditions in Austroads (2014) were based on adjustments for a range of conditions such as population exposure, vehicle population, vehicle kilometres travelled and varied across externality types. In some rural locations, an indication of na (not applicable) was applied for an externality category and mode where this was considered appropriate (e.g. within the air pollution category). Table 2.3 Externality values (as per June $2013): Passenger transport (rural) Externality type Car Bus Rail $/1000pkm $/1000vkt $/1000pkm $/1000vkt $/1000pkm Air pollution N/A N/A 0.04 Greenhouse Noise N/A N/A N/A N/A 0.02 Soil and water Biodiversity Nature and landscape Additional urban/barrier effects N/A N/A N/A N/A N/A Upstream and downstream Total Source: Austroads (2014). Table 2.4 Externality values (as per June $2013): Freight transport (rural) Externality type LCV HCV Rail $/1000tkm $/1000vkt $/1000tkm $/1000vkt $/1000tkm Air pollution N/A N/A Greenhouse Noise N/A N/A Soil and water Biodiversity Nature and landscape Additional urban/barrier effects N/A N/A N/A N/A N/A Upstream and downstream Total Source: Austroads (2014). Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia 7

8 2.3 Range of values In Austroads (2014), it is assumed that the externalities estimates generated by the model are the mid-level of the estimate. Therefore, the upper and lower bounds of the estimates are assumed to vary in the same proportions as in previous sets of externalities estimated for Austroads in project Austroads (2012a). The minimum (lower) and maximum (upper) estimates for passenger and freight transport in urban and rural conditions are contained in Austroads (2014). 2.4 User documentation User documentation was developed in Austroads (2014) to guide practitioners in the use of the externalities estimates, according to externality type and aimed at the following series of questions: When it is appropriate to use these values? How does the practitioner use these values? What else does the practitioner need to use these values? What conditions must exist for the practitioner to use these values appropriately? What are the limitations of using these values? The user documentation is set out in detail in Table A 1 of Appendix A. Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia 8

9 3. Indexation of parameter values This chapter provides guidance on the indexation of parameter values across all components until a new set of parameter values is released. In all cases, the indices should be applied to the monetary values generated in the document. The recommended ABS indices, data series and source databases per component of the parameter values are contained in Table 3.1 below: Table 3.1: Recommended indices for updating of parameter values Parameter value component Recommended ABS index ABS Series ID, Frequency & ABS Source Database Externalities CPI (All groups) A C (monthly) (1) Source: ARRB adapted from ABS Notes: 1) ABS Series Consumer Price Index, Australia: Table 7: CPI: Group, Sub-group and Expenditure Class, Weighted Average of Eight Capital Cities. Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia 9

10 References Austroads 2011a, Updating RUE unit values and methodologies, AP-R373-11, Austroads, Sydney, NSW. Austroads 2012a, Guide to project evaluation: part 4: project evaluation data, AGPE04-12, Austroads, Sydney, NSW. Austroads 2014, Updating externalities unit values, Austroads Project TP1670, Austroads, Sydney, NSW. CE Delft, Infras & Fraunhofer ISI 2011, External costs of transport in Europe: update study for 2008, CE Delft, Delft, Netherlands. Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia 10

11 Appendix A User documentation per environmental externality type* * Subject to finalisation of report for Austroads externalities estimates, project TP1670. The externalities user documentation in this section is provided in detail in Austroads (2014). Table A 1 Externalities user documentation per externality type Externality type Appropriate use How to use values Additional information required Appropriate conditions Limitations in use of values Air pollution Application of values to projects These values are the result of air pollution caused by transport activities, hence are applicable when considering new road construction and maintenance of existing projects. Unit values for air pollution should be applied to a project where the impacts of vehicles or rail are considered to cause adverse effects on human health, damages to buildings, and/or crop losses. Application of values for different locations Unit values provided can be applied to urban and rural conditions for passenger and freight (road and rail). Unit values for all externality items reported in apply to volume changes. Quantifiable impacts 1. Establish the environment (specific air pollutants) and vehicle compositions. 2. Users may apply $/tonne air pollutant values to models, in order to supplement a bottom-up analysis often aggregating air pollution estimates and conversion factors. Valuation 1. Apply $A / 1,000 pkm, vkt and tkm average cost values where appropriate. 2. Multiply vehicle kilometres obtained by $A / 1,000 pkm, vkt or tkm for the base and project cases. 3. Incorporate totals into Source of values The values are based on CE Delft et al. (2011). The bottom-up approach is applied following the impactpathway approach discussed in Austroads (2014). For calculating the air pollution average costs, only emission data (emission factors of air pollutants per vehicle category, transport volume per vehicle category mileage per vehicle category vkm), and unit cost factors (per tonne of air pollutants) are used. Calculation of values to June 2013 Austroads (2014) adjusts CE Delft et al. (2011) actual costs according to currency, occupancy, populated and PPP, for road and rail in $AUD to June Austroads (2014) also provides shadow prices Assumptions for passenger car/bus Air pollution is predominantly an urban issue. The externality value is a function of vkt and population distribution (which is associated with health impacts). As most bus vehicle kilometres are in urban areas, the rural bus value is set at zero. For passenger car rural values, these are set at 1% of the urban value. Assumptions for LCV s As most light commercial vehicle kilometres are in urban areas, the rural LCV value is set at zero. For other rural values, these are set at 1% of urban values. Assumptions for heavy vehicles For heavy vehicles, as approximately 85% of all articulated vkt occur in rural areas, assume 10% of the As these values are based on European data converted to Australian conditions, there are limitations in the applicability of these values in Australia. For example, data applicability of EU27 countries to Australia in terms of transport modes, vehicle fleet characteristics, exposure-response impacts. Bottom-up methodologies using Australian data which would extend the work undertaken have been highlighted in Austroads (2014) as an area for further work for air pollution. Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia 11

12 Externality type Appropriate use How to use values Additional information required Appropriate conditions Limitations in use of values BCA. used in the CE Delft et al. (2011) study converted to $AUD 2013 per tonne of emissions, if disaggregated information is required. Million passenger km, million t-km and million vkt have been provided from BITRE Australian Transport Statistics yearbook (2009). urban cost. Assumptions for rail Due to limited information, rail (passenger and freight) rural values are set at 1% of urban values. Greenhouse Gases (GHG) Application of values to projects As GHG emissions are global in nature involving different chemical compounds, it should be treated as being different from air pollution. These values are the result of GHG emissions caused by transport activities, hence are applicable when considering new road construction and maintenance of existing projects. Unit values for greenhouse should be applied to a project where the impacts of vehicles or rail are considered to cause adverse effects to the environment. Unit values for all externality items reported apply to volume changes. Quantifiable impacts 1. Establish the environmental impact and vehicle compositions. 2. Users may apply minimum and maximum values according to the emphasis of climate change for a project. Valuation 1. Apply $A / 1,000 pkm, vkt and tkm average cost values where appropriate. 2. Multiply vehicle kilometres obtained by $A / 1,000 pkm, vkt or tkm for the base and project cases. 3. Incorporate totals into BCA. Source of values Due to uncertainty in the current and future approaches, the climate change GHG $/tonne values in this report is based on the lower estimate used in CE Delft et al. (2011). The lower cost estimate (estimated at 25 per tonne of CO 2) uses avoidance cost estimates for meeting the EU GHG reduction target for 2020 (CE Delft et al. 2011). CE Delft et al. (2011) calculates greenhouse average costs by: assessing the total GHG emissions by type of vehicle per country; calculating total CO 2 equivalent GHG emissions using Global Warming Potentials (GWP); multiplying the total tonnes of CO 2 equivalent GHG emissions by an external cost factor ; calculating the average climate change costs (per tkm/pkm) by Assumption for different locations As greenhouse is a global impact, the same value applies to all areas. The same value is therefore applicable to urban and rural locations for each mode type and values are not location specific. Valuation of greenhouse gases is complex and it is recognised that in a number of respects the assumption of global parity for greenhouse may not encapsulate all the anticipated impacts in its costs, such as potential increases in maintenance costs, natural disaster costs and adaptation costs. Additionally, it is recognised that GHG emissions are impacted by fuel consumption, and levels of vehicle kilometres travelled can vary between urban and rural locations and between Since the commencement of this project there have been significant changes to an approach to addressing climate change. Due to uncertainty in the current and future approaches, the climate change GHG $/tonne values in this report should be treated as approximate estimates only, and may be subject to change following policy advancements. Also, as these values are based on European data converted to Australian conditions, there are limitations on an appropriate converted $/tonne cost of CO 2 equivalent GHG emissions for use in Australia. A lower estimate has therefore been used based on this uncertainty. Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia 12

13 Externality type Appropriate use How to use values Additional information required Appropriate conditions Limitations in use of values dividing the total costs per vehicle type per country by the number of tkm/pkm per country. Calculation of values to June 2013 These costs were then converted to Australian conditions as described in Austroads (2014). Further information on the low and high shadow prices ( per tonne of CO 2) have been converted to $ per tonne AUD in Austroads (2014). This enables the practitioner to reference a low or high shadow price if warranted. Australian states. The assumption of global parity was therefore adopted because the methodology and scope adopted is topdown rather than bottom-up and does not enable the data-sets to separate out the changes in fuel consumption. As a result, an overall global figure for urban/rural locations has been adopted. Million passenger km, million t-km and million vkt have been provided from BITRE Australian Transport Statistics yearbook (2009). Noise Application of values to projects Noise pollution is localised and values should be applied to a project where the impacts of vehicles or rail are considered to cause adverse effects to the community. Quantifiable impacts 1. Establish the environment (urban or rural), proportions of vehicles and vehicle types. 2. Determine the total kilometres of traffic braking noise thresholds by vehicle type. Source of values The CE Delft et al. (2011) study provides average unit costs comprising annoyance and human health effects. CE Delft et al. (2011) applies a bottom-up approach and calculates average noise pollution costs by: estimation of the number of people affected by noise per vehicle type (per noise class of 5 db(a) and a threshold of 55 db(a)); estimation of the Assumptions for passenger car/bus Noise pollution is mostly an urban issue. The externality value is a function of population distribution and where most travel takes place (mostly in urban areas). As a result, the rural noise unit cost is set to zero for passenger cars and buses. This should not imply that rural noise impacts are always As these values are based on European data converted to Australian conditions, there are limitations in the applicability of these values in Australia. Whilst bottom-up methodologies using Australian data would be useful, this report applies a consistent methodology using data from the same source to enable effective comparison of externality Values are applicable when considering new road Valuation construction and maintenance of existing 1. Apply $A / 1,000 pkm, vkt projects. and tkm average cost values where negligible. The particular Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia 13

14 Externality type Appropriate use How to use values Additional information required Appropriate conditions Limitations in use of values Application of values for different locations Unit values provided can be applied to urban and rural conditions for passenger and freight (road and rail). appropriate. 2. Multiply vehicle kilometres obtained by $A / 1,000 pkm, vkt or tkm for the base and project cases. 3. Incorporate totals into BCA. total noise costs by multiplying the number of people affected by the noise costs per person exposed; average noise costs per pkm and tkm by mode are calculated by allocating the total noise costs to the various transport modes by using specific weighted factors. Austroads (2014) provides further information on the calculation of noise costs. Calculation of values to June 2013 Austroads (2014) adjusts CE Delft et al. (2011) actual costs according to currency, occupancy, populated and PPP, for road and rail in $AUD to June Million passenger km, million t-km and million vkt have been provided from BITRE Australian Transport Statistics yearbook (2009). situation and conditions will need to be considered. For example, the background noise level in rural areas is typically lower than urban areas. A similar noise event may therefore be more significant within a rural area compared to an area with higher background noise levels. For rural towns, assume the urban value. Assumptions for LCV s As noise is largely an urban issue, LCV rural noise values should be set at zero. Assumptions for heavy vehicles For heavy vehicles rural noise (as approximately 85% of all articulated vkt occur in rural areas) assume 10% of the urban cost. For rural towns, assume the urban value. Assumptions for rail Rail (passenger and freight) rural values are set at 1% of urban values. types and modes. Soil and water Application of values to projects Soil and water pollution is highly localised and values should be applied to a project where the impacts of vehicles or rail are considered to cause adverse effects on the physical Quantifiable impacts 1. Estimate potential environmental impact of run-off from road vehicles. 2. Estimate the degree of rainfall intensity, mitigation devices, type of road, drainage path Source of values CE Delft et al. (2011) estimates soil and water pollution for road and rail based on the repair cost approach (which considers vegetation, sedimentation tanks, combined catchments and treatment of storm water Assumptions for passenger car/bus For rural passenger cars, assume 10% of the urban value. Assuming a vkt split of 99% urban and 1% rural, the rural bus value is set at 1% of urban bus value. Assumptions for LCV s Estimating externalities for water pollution from road projects is a difficult and uncertain task. These costs are highly location specific. These should be considered to be rough estimates only. It is noted that considerable differences between Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia 14

15 Externality type Appropriate use How to use values Additional information required Appropriate conditions Limitations in use of values environment. Application of values for different locations Values are location-specific and are applicable when considering new road construction and maintenance of existing projects. length. Valuation 1. Estimate vehicle kilometres. 2. Multiply vehicle kilometres obtained by $A / 1,000 pkm, vkt or tkm for the base and project cases. 3. Quantify on a project-byproject basis, because the project may be site-specific. run-off). CE Delft et al. (2011) calculates average costs by: estimation of the total land volume impacted by water and soil pollution; estimation of the costs of soil and water pollution. This is derived by multiplying the total land area harmed by an external cost factor ( /m3). Calculation of values to June 2013 Austroads (2014) adjusts CE Delft et al. (2011) actual costs according to currency, occupancy, populated and PPP, for road and rail in $AUD to June Million passenger km, million t-km and million vkt have been provided from BITRE Australian Transport Statistics yearbook (2009). For light vehicles assume a vkt split is 99% urban, hence the rural value is set at 1% of the light vehicle urban value. Assumptions for heavy vehicles The heavy vehicle vkt split is 15% urban, 85% rural (this is what creates the pollutant load). Pollution impacts occur where most of the vkt are undertaken (i.e. urban areas). Due to impervious urban surfaces, road drainage is collected and concentrated compared to rural areas (so increase urban value 4- fold. For heavy vehicles assume urban 60%, rural 40%. Assumptions for rail Rail (passenger and freight) rural values are set at 1% of urban values. Australian and European conditions exist. However for consistency in the methodology, values from CE Delft et al. (2011) have been used. Further work is required on these values in the areas of providing separate unit costs for soil and water pollution; coverage of both vkt and imperviousness; assessment of water pollution impacts on the downstream receiving environment, rather than according to the land occupied by the transport infrastructure. Further research is also required on providing a broader range of values of road projects on the receiving environment. Biodiversity Application of values to projects Values should only be applied if there is risk to the natural ecosystem and/or other direct impacts on biodiversity, resulting from air pollution. Quantifiable impacts Estimate potential environmental impact (biodiversity losses due to transport activities) arising from airborne emissions. Valuation 1. Estimate vehicle kilometres. Source of values CE Delft et al. (2011) quantifies the negative effects of air pollution on biodiversity using doseresponse relationships and a Potentially Disappeared Fraction of species (Austroads 2014). Due to the interrelationship with air pollution, application of urban and rural values is as per air pollution assumptions. However, because loss of biodiversity is a more significant issue in rural areas, non-zero values have been applied where possible. As biodiversity loss is an area that is highly location specific and dependent on species, there are limitations in using European values. There are also notable differences in the distribution of urban versus rural locations between Australia and Europe, therefore these values should be treated as rough estimates only. Application of values for different locations Calculation of values to Values are location-specific 2. Multiply vehicle June 2013 and are applicable when kilometres obtained by These costs were then considering new road $A / 1,000 pkm, vkt or converted to Australian construction and to a lesser tkm for the base and conditions as detailed in In the absence of other data, Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia 15

16 Externality type Appropriate use How to use values Additional information required Appropriate conditions Limitations in use of values degree maintenance of existing projects. project cases. 3. Quantify on a project-byproject basis, because the project may be site-specific. Austroads (2014). Austroads (2014) adjusts CE Delft et al. (2011) actual costs according to currency, occupancy, populated and PPP, for road and rail in $AUD to June Million passenger km, million t-km and million vkt have been provided from BITRE Australian Transport Statistics yearbook (2009). Assumptions for passenger vehicles, LCV and rail Values are set at 1% of urban values. Assumptions for heavy vehicles Values are set at 10% of urban values for consistency with air pollution assumptions. these values are calculated using a consistent source, however if the user has more location based information, this should be also applied. Nature and landscape Application of values to projects Values should only be applied if there is a change in land use in the form of sealing areas, which results in habitat loss and fragmentation. Application of values for different locations Values are location-specific and are applicable when considering new road construction and to a lesser degree maintenance of existing projects. Quantifiable impacts Determine the area of land impacted (e.g. direct and indirect land). Valuation 1. Estimate vehicle kilometres. 2. Multiply vehicle kilometres obtained by $A / 1,000 pkm, vkt or tkm for the base and project cases. 3. Quantify on a project-byproject basis, because the project may be site-specific. Source of values The CE Delft et al. (2011) (avoidance costs) is based on repair and compensation/restoration methodology and a unit cost per area of affected land. Values are derived from the same approach as INFRAS/IWW (2004). CE Delft et al. (2011) applies a cost factor for unsealing costs and restoration. Costs per transport mode and vehicle categories is calculated based on transport mileage per vehicle category, whereby for road, the mileage data is weighted with the passenger car unit, taking into account different infrastructure use of the vehicles (Austroads 2014). Assumptions for passenger car/bus For passenger vehicles and buses, The sensitivity of the loss is assumed to be higher for rural areas therefore the urban passenger car and bus values are set at 10% of the rural value. Assumptions for LCV s As conditions in Australia are different to Europe, the light vehicle range is assumed to be approximately half the lower estimated light range provided in Austroads (2003d) in Austroads (2014) and adjusted to For light vehicles assume a rural value at 1% of the urban value. Nature and landscape is highly location specific. There are also notable differences in the distribution of urban versus rural locations between Australia and Europe, therefore these values should be treated as rough estimates only. In the absence of other data, these values are calculated using a consistent European source, however if the user has more location based information, this should be also applied. Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia 16

17 Externality type Appropriate use How to use values Additional information required Appropriate conditions Limitations in use of values Calculation of values to June 2013 Austroads (2014) adjusts CE Delft et al. (2011) actual costs according to currency, occupancy, populated and PPP, for road and rail in $AUD to June Million passenger km, million t-km and million vkt have been provided from BITRE Australian Transport Statistics yearbook (2009). Assumptions for heavy vehicles As the vkt split is higher for heavy vehicles in rural areas, and because the sensitivity loss is higher in rural areas, the urban heavy vehicle value is set at 10% of the rural value. Assumptions for rail Rail (passenger and freight) rural values are set at 1% of urban values. Additional urban / barrier effects Application of values to projects Values should only be applied to urban locations only, and are applicable when considering new road construction and to a lesser degree maintenance of existing projects. Application of values for different locations Location dependent and site-specific. The CE Delft et al. (2011) study is based on time losses due to separation effects of pedestrians in urban areas, using a detailed calculation for Swiss cities. Quantifiable impacts Determine the constraints to mobility of pedestrians, and time losses. Valuation 1. Multiply vehicle kilometres obtained by $A / 1,000 pkm, vkt or tkm for the base and project cases. 2. Quantify on a project-byproject basis, because the project may be site-specific. Source of values CE Delft et al. (2011) provides an outline of the calculation methodology and this is summarised in Austroads (2014). Information on estimated time losses for pedestrians within a project is required. Calculation of values to June 2013 This Technical report adjusts CE Delft et al. (2011) actual costs according to currency, occupancy, populated and PPP, for road and rail in $AUD to June 2013 (see Austroads 2014). Assumptions for all modes Urban separation is an urban externality only. Nature and landscape is highly location specific. In the absence of other data, these values are calculated using a consistent source, however if the user has more location based information, this should be also applied. In this study, severance is Million pass km, million t-km considered an issue in urban and million vkt have been areas only. It could, provided from BITRE however, be a major issue in Australian Transport rural areas e.g. if a property Statistics yearbook (2009). is split in half by a new freeway, or if people have to Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia 17

18 Externality type Appropriate use How to use values Additional information required Appropriate conditions Limitations in use of values travel significant additional kilometres to access their local town. Application on a project specific basis is suggested. Upstream and downstream Application of values to projects CE Delft et al. (2011) bases the calculation of external costs of upstream and downstream processes according to well-to-tank emissions. Fuel and electricity production results in emissions (air pollution and greenhouse) due to extraction of raw materials, transport of the fuels and transmission of electricity. Application of values for different locations Values are non-location specific and broad ranging similar to climate change in approach. These are applicable when considering new road construction and maintenance of existing projects. Quantifiable impacts Determine the potential wellto-tank emissions. Valuation 1. Multiply vehicle kilometres obtained by $A / 1,000 pkm, vkt or tkm for the base and project cases. 2. Quantify on a project-byproject basis, because the project may be site-specific. Source of values In CE Delft et al. (2011), these costs are calculated similar to air pollution and greenhouse, by multiplying emission data with cost factors (shadow prices) per pollutant for air pollution (broader PM costs are used) and climate change costs. Calculation of values to June 2013 Additional information relating to emissions data, and the electricity mix of railways is required. Austroads (2014) adjusts CE Delft et al. (2011) actual costs according to currency, occupancy, populated and PPP, for road and rail in $AUD to June Million passenger km, million t-km and million vkt have been provided from BITRE Australian Transport Statistics yearbook (2009). Assumptions for all modes These costs refer to the indirect costs of transport including energy generation, vehicle production and maintenance, and infrastructure construction and maintenance. Similar to greenhouse, these estimates are assumed to be non-location-specific. Consideration of the distributional effects of vehicle types per location is important. It is acknowledged that there are challenges to costing this category and it requires consideration of the wholeof-life aspects of vehicles (e.g. operational, construction and other additional impacts). In the absence of a detailed (bottom-up) analysis for each externality category, and in order to provide a consistent approach to calculating and comparing externalities, the values provided in the CE Delft study have been converted to Australia for this current project. In the absence of other data, these values are calculated using this European source, however if the user has more location based information, this should be also applied. Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia 18

19 Transport and Infrastructure Council 2014 National Guidelines for Transport System Management in Australia 19