Is TREDIS a benefit-cost tool or an economic impact tool?

TREDIS provides both types of analysis within the broader context of a “decision support system.” It provides a way to conduct and apply economic analysis (of benefit, costs and impacts) to inform public discussion of transportation-related policies and plans. And it provides a basis for project prioritization, ranking and funding decisions.

What is the difference between Benefit-Cost Analysis (BCA) and Economic Impact Analysis (EIA)?

In the transportation context, BCA is usually implemented as a comparison of project costs and user benefits, and is the first stage in a broader process of economic assessment.  It is sometimes referred to as engineering-based analysis because all of its elements – construction cost, traffic flow, safety and emissions – can be directly observed or estimated by transportation engineers and planners.  The results – a benefit/cost ratio and net benefit value – are calculated based on the assignment of monetary valuation factors for transportation-related improvements, which are based on either actual cost or a survey-based “willingness to pay.”  BCA is often used as an element in grant applications and project funding decisions.  

EIA, in contrast, assesses the wider effects on the economy – as reflected by jobs and income for area residents.  It goes well beyond direct user benefits to also consider how transportation projects can affect job access, product delivery markets, supply chain reliability, household budgets and business operating costs – leading to changes in productivity, business location patterns and ultimately employment and income growth for the affected area.  EIA is broader than user benefit analysis in BCA in that it considers wider economic effects on area residents (and not just traveler benefits), but it is narrower in that it does not consider personal time savings or other benefits that do not directly affect the flow of money in the economy (even though they may have a value to people).  There is great public interest in EIA for policy, planning and prioritization, and it is often used alongside BCA for project decision-making.  The TREDIS Economics Suite provides both BCA and EIA.  

What makes TREDIS different from other models or tools?

TREDIS covers all modes – including air, marine and non-motorized modes, as well as road and rail transportation. It follows through by showing how interactions and connectivity among modes makes a difference, and it uses that information to enable comprehensive coverage of wider economic benefits. TREDIS also provides views of economic impacts and benefits from alternative spatial, governmental and private sector perspectives. This is important because most public decisions are made by governmental agencies that represent specific spatial areas and constituencies.

What modes of transportation can TREDIS address?

TREDIS provides input forms for car, truck, bus, bicycle, pedestrian, passenger train, freight train, aircraft and boat. And it can distinguish among modal subgroups – e.g., delivery vans vs. large tractor trailer trucks, rail transit vs. commuter rail, regular vs. high speed trains, general aviation vs. commercial aircraft, container ships vs. passenger ferries, etc. This is important because these modal subgroups have very different speed and cost characteristics as well as dependent users and beneficiaries – all affecting the nature and size of economic impacts and benefits.

What is the smallest scale of study on which TREDIS can do a relatively accurate analysis?

Depending upon your needs, TREDIS can accommodate multi-state, state, corridor, county, and sub-county (zip code) economic impact and benefit cost analyses.

Who has used TREDIS?

TREDIS has been used in 43 US states and Canadian provinces. Subscribers include a wide set of state DOTs and MPOs, as well as local transportation agencies, universities and leading consulting firms. For a list of specific organizations using TREDIS, go to the web site section on TREDIS Users.

Can TREDIS be used for international (outside of USA) analyses?

TREDIS is currently being used in the USA, Canada, and Australia. TREDIS can be configured for metric or other measurement and currency units symbols.  Depending upon the economic and transportation data available, TREDIS can be configured to work in other nations.

Does the US DOT support the use of TREDIS?

The US government does not endorse any specific software or tools. However, staff of USDOT have reviewed the TREDIS fixed factor assumptions, and they have awarded rail grants and TIGER grants to some organizations that used TREDIS to generate benefit-cost and economic impact numbers for their applications. TREDIS was also designed to be compatible with FHWA’s highway benefit-cost guidelines and FAA’s s aviation user benefit-cost guidelines.

How can TREDIS help my organization get agency or public buy-in for a project or program?

TREDIS provides input forms tailored for relevance to different types of project and policy situations, and it provides separate reports tailored for communicating different types of benefits and impacts to legislators, elected officials, agency planners, business representatives and local residents.