Engineering Economy And Economic Penetration Roads

by Henry M. Steiner,


Serial Information: Journal of the Highway Division, 1967, Vol. 93, Issue 2, Pg. 143-154


Document Type: Journal Paper

Abstract: An example of the economic planning of penetration roads is presented. The case cited is that of the State of Tamaulipas in Northeastern Mexico. Certain general observations on the investment criteria used by Mexican government planners are introduced, particularly as those criteria are understood in the field of engineering economy. The technique of discounted cash flow is applied to suppositions regarding induced agricultural production within the zone of influence of the economic penetration road. In particular, the sensitivity of benefit-cost ratios to the rates of increase of the agricultural production induced by a road is investigated.

Subject Headings: Highways and roads | Economic factors | Highway engineering | Agriculture | Benefit cost ratios | Developing countries | Government | Investments | North America | Mexico

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