The Naas Motorway Bypass - A Cost Benefit Analysis. Quarterly Economic Commentary Special Article, January 1984

Barrett, Sean D. and Mooney, David and Baker, T.J. and Callan, T. and Scott, S. and Madden, D. (1984) The Naas Motorway Bypass - A Cost Benefit Analysis. Quarterly Economic Commentary Special Article, January 1984. [Working Paper]

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Abstract

The paper examines the Naas Motorway Bypass which cost £16m at 1983 prices. Twelve thousand vehicles a day using the bypass save over 10 minutes between 8 am and 8 pm and 6 minutes at other times. Five thousand vehicles a day using the present route through Naas also benefit by saving 4 minutes due to reduced congestion in the town. In addition to time savings, the bypass reduces accidents and fuel costs. Ninety-one per cent of the benefits accrue in time savings. The internal rate of return on the project is estimated at 20.51 per cent, assuming 2 per cent annual traffic and income growth. The sensitivity tests of the results show that even with zero growth in incomes and traffic for twenty years, a high proportion of leisure time savings with zero value and no increase in the value of fuel savings the project would have an internal rate of return which meets the test discount rate used by the Department of Finance. The environmental aspects of the bypass are positive in terms of noise and smoke and lead pollution reduction. The impact on farm severence and natural amenities on the motorway route has been mitigated by several design features of the bypass.

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