Mackie, PeterNellthorp, JohnLaird, James2012-08-132012-08-132005-01https://hdl.handle.net/10986/11796Induced traffic can be an important part of the economic appraisal particularly when the objective of the investment is to stimulate economic development; it's importance, however, is not restricted to such situations. The omission of induced traffic from the economic appraisal, or its incorrect treatment, may lead to either over or underestimations in the user benefits (consumer surplus) of an investment. In addressing this issues, this note, considers: the importance of induced traffic for the economic appraisal (Section 1); what constitutes induced traffic (Section 2); the situations in which induced traffic is likely to be relevant (Section 3) and the manner in which it can be modeled (Section 4) and user benefits calculated when it is present (Section 5). The annexes show the relative importance of including the benefits of induced traffic in the evaluation of an urban transport project; where the standard "rule of one half" breaks down in some situations that are often present in Bank projects, while another shows a numeric integration technique that can be used as a valid alternative to the rule of one half in many of these situations (and coincidently, provides a more precise evaluation even where the "rule of one half" gives an acceptable estimation).CC BY 3.0 IGOACCESSIBILITYACCIDENTSAIR QUALITYARTERIAL ROADSAVERAGE TRIPAVERAGE TRIP TIMEBICYCLESBRIDGEBRIDGESBUSBUS PRIORITYBUS PRIORITY SCHEMESBUSESCALIBRATIONCARRIAGEWAYCARSCHANNELIZATIONCONGESTIONCOST BENEFIT ANALYSISCOST PER TRIPEXPORTFARE REVENUEFARESFEEDER ROADSFRAMEWORKFREIGHTFREIGHT MOVEMENTSFREIGHT TRAFFICFREIGHT TRANSPORTGENERATED TRAFFICHDM4INCOMEINTERCHANGESJOURNEYJOURNEY PURPOSESLIGHT RAPID TRANSITMETRO SYSTEMSMODAL TRANSPORTNET BENEFITSORIGIN-DESTINATION DATAPEAK HOURPEAK HOURSPEDESTRIAN TRAFFICPRIVATE SECTOR PARTICIPATIONPUBLIC TRANSPORTRAILWAY TRAFFICRAILWAYSRANGERAPID TRANSITRIVERROAD IMPROVEMENTROAD TOLLSROAD TRAFFICROADSROUTERURAL ROADSSAFETYSAFETY AND RELIABILITYSEALINGSPEEDSTEELTAXISTOLL ROADSTRAFFICTRAFFIC COUNTTRAFFIC DEMANDTRAFFIC FLOWTRAFFIC LEVELSTRAINSTRANSPORTTRANSPORT COSTTRANSPORT COSTSTRANSPORT ECONOMICSTRANSPORT INFRASTRUCTURETRANSPORT INTERACTIONTRANSPORT INVESTMENTTRANSPORT PROJECTSTRANSPORT SECTORTRANSPORT SERVICESTRANSPORT SYSTEMTRANSPORT VOLUMETRANSPORTATIONTRAVEL TIMETRAVEL TIMESTRAVELLERSTRIP MAKINGTRIP PURPOSETRIPSTRUCKSTRUNK ROADTRUNK ROAD ASSESSMENTTRUNK ROADSURBAN MOTORWAYSURBAN TRANSPORTURBAN TRANSPORT PROJECTUSER COSTSVEHICLE OPERATINGVEHICLE OPERATING COSTSVERGEWORK TRIPSWorld Bank10.1596/11796