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


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

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