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Why Doesn't Anyone
Compare Navigation
Benefit/Cost Analysis Strategies?
Smart Rivers 2017
Doug Scheffler, Bruce Lambert, Marty Hettel
Presented by Mark J Carr
Who in this group:
•Does BCA:
•On construction?
•On O&M?
•On Enviro?
Who in this group:
Is early in their research careers or looking for a new
horizon?
Thinks the study of BCA “refinements and nuances” are
rich enough for a career?
Credits:
Meaningful ideas are Doug Scheffler’s, Bruce Lambert’s
and Marty Hettel’s.
Crazy ideas are mine alone.
One stakeholders’ benefit is another’s cost
Law (…to every whomsoever they accrue.)
OMB direction
Economic standing assumptions
One stakeholders’ benefit is another’s cost
Can you switch the positions and analyze anew?
Numbers and narrative
Each can illuminate or obscure
Combined effectively, solid figures and
compelling stories persuade and defend.
Congress
Administration
Public
Beneficiaries work of Larry Bray
Shows billions in benefits of the pooled water
Municipal water supply;
industrial and utility cooling;
irrigation;
recreation;
property value increases; others
These sectors include rate-payers or other taxable entities.
Those beneficiaries’ federal tax payments
the justification for the federal share of L&D
Beneficiaries work of Larry Bray
No other beneficiaries directly pay
PPP with inland maritime is the $.29 diesel fee
Why are there inconsistencies in discounting
and other assumptions?
When an entity asserts that “We’re different,” hold onto your wallet
DOD personnel records data systems is poster child of this inwardly-focused
myth
USACE consideration of national and regional economic benefits
may be inconsistent with considerations for roadways
Much mischief in the current Principals and Guidelines
Recent attempt to update P&G a sick joke
Plenty here for academics and practitioners
•Road and river inconsistencies
•National and regional benefits
•Environmental applications
•Increasing granularity of analysis
•Narrative development in parallel to BCA
•More
Authority – responsibility
Questions?
Mark J Carr
Channel Design Group (.com)
DC NOLA StL

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Benefit Cost Analysis in the Marine Navigation Sector

  • 1. Why Doesn't Anyone Compare Navigation Benefit/Cost Analysis Strategies? Smart Rivers 2017 Doug Scheffler, Bruce Lambert, Marty Hettel Presented by Mark J Carr
  • 2. Who in this group: •Does BCA: •On construction? •On O&M? •On Enviro?
  • 3. Who in this group: Is early in their research careers or looking for a new horizon? Thinks the study of BCA “refinements and nuances” are rich enough for a career?
  • 4. Credits: Meaningful ideas are Doug Scheffler’s, Bruce Lambert’s and Marty Hettel’s. Crazy ideas are mine alone.
  • 5. One stakeholders’ benefit is another’s cost Law (…to every whomsoever they accrue.) OMB direction Economic standing assumptions
  • 6. One stakeholders’ benefit is another’s cost Can you switch the positions and analyze anew?
  • 7. Numbers and narrative Each can illuminate or obscure Combined effectively, solid figures and compelling stories persuade and defend. Congress Administration Public
  • 8. Beneficiaries work of Larry Bray Shows billions in benefits of the pooled water Municipal water supply; industrial and utility cooling; irrigation; recreation; property value increases; others These sectors include rate-payers or other taxable entities. Those beneficiaries’ federal tax payments the justification for the federal share of L&D
  • 9. Beneficiaries work of Larry Bray No other beneficiaries directly pay PPP with inland maritime is the $.29 diesel fee
  • 10. Why are there inconsistencies in discounting and other assumptions? When an entity asserts that “We’re different,” hold onto your wallet DOD personnel records data systems is poster child of this inwardly-focused myth USACE consideration of national and regional economic benefits may be inconsistent with considerations for roadways Much mischief in the current Principals and Guidelines Recent attempt to update P&G a sick joke
  • 11. Plenty here for academics and practitioners •Road and river inconsistencies •National and regional benefits •Environmental applications •Increasing granularity of analysis •Narrative development in parallel to BCA •More
  • 12. Authority – responsibility Questions? Mark J Carr Channel Design Group (.com) DC NOLA StL

Editor's Notes

  1. America enjoys an abundance of coastlines and inland waterways; and where previous investment in water projects sustains economic activity and national security. Navigation projects especially contribute to nation’s growth, through its linkages to road and rail modes. However, these previously generated benefits will not last indefinitely. Today, governmental decision makers must define and rank the relative merits of both new navigation construction and on-going maintenance projects. This linkage between national modal investments, both within a single mode, but also across modes, represents a rich field for additional research; the presenters call for such sustained action in the subject through this paper demonstrating both the problem and some areas where additional research is required. Various agencies share responsibility for components of the waterway navigation system. Eventually, legislative and regulatory policies codified different evaluation approaches when examining investments in waterways. For example, the Corps of Engineers, state and federal DOTs and the US Office of Management and Budget each rely upon different Benefit/Cost Analysis and multipliers (BCA), sometimes in analyzing the same project. The presenters will identify established ways that BCA approaches are used in navigation related projects. The presenters call for research on how investment decisions and prioritization of inland waterway navigation projects would improve by reconciling inconsistencies between BCA strategies and requirements. The presenters call on researchers to expand work on maritime transportation subjects, such as to identify how to use BCA to account for different agencies requirements; to identify the common areas of consideration; identify false differences between BCA strategies; to demonstrate how these valuations could be expanded to include the true economic alternatives of not only a discreet project, but to also facilitate comparison between alternative projects across a geographic region proposed to meet a transportation requirement.