Project: Use of Elasticity Models to Model Variable Demand

Reference: R166

Last update: 14/08/2013 09:32:23


1) To produce a review of TRL's report on ""tests on Variable Demand Modelling Advice (VaDMA)". This will comment on the method used by TRL to compare outputs from models with different functional forms which output different outtrun elasticities when assessing the same scheme.

2) To investigate the impact of elasticity method and variable demand modelling on the identified scheme in terms of economic benefits.

3) To give advice on how good the generalised cost should be in terms of the cost component and market segmentation if elasticity models are to partially replace multi stage variable demand models.


For any analyst who is required to assess a highway scheme, it is essential to ask what the response of travel demand to the scheme might be, and what implications this might have for the justification of the scheme. In most situations it will be necessary to assess the
scheme by combining a traffic assignment model with some form of variable demand model.

This project is expected to produce a report which highlights the strengths and weaknessess of using the elasticity modelling approach.


Mott MacDonald
Devon House, 12-15 Dartmouth Street, London, SW1H 9BL
20 7340 2250

Faber Maunsell Ltd
Marlborough House, Upper Marlborough Rd, St Albans, Hertfordshire, AL1 3UT
020 8784 5784

Contract details

Cost to the Department: £127,180.00

Actual start date: 15 March 2006

Actual completion date: 17 May 2007


Use of Elasticity Models to Model Variable Demand
Author: Mott MacDonald & Faber Maunsell
Publication date: 17/05/2007
Source: Dft Website
More information: