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Cost-Benefit Analysis and Scenario Modeling Capital, Environmental, and Stakeholder Perspectives

 

Rohith Reddy Katta

Integrated Travel Research and Development

November 2025

 

The study incorpoates:

 

• User Time Savings: Past studies (Channel Tunnel) calculate millions in value per annum from reduced travel time, using segment-specific actual trip data. For Vancouver Island, scenario-specific trip time and frequency estimates should be applied to each option (per attached reports).

 

• GHG Reduction: Potential GHG reductions should be monetized using local carbon pricing; mode shift away from road transport can improve island-wide climate resilience.

 

• Producer and Consumer Surplus: Use demand curves and fare/usage data to estimate both 'producer loss' (e.g., transition from existing modes) and 'consumer surplus' gained.

 

• Stakeholder and Social Perspective- First Nations Engagement: All project alternatives must ensure protected consultation and possible co-management, as legal/ownership rights critically shape which corridor uses are possible.

 

• Community and Economic Effects: The economic development enabled by corridor upgrades is substantial but must be benchmarked against both alternative uses and opportunity costs (e.g., housing, parks, utility corridors).

 

Link to Study