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...s and software have excluded environmental costs because such costs are normally difficult to measure and the values related with user and environmental issues are often disputed. Time is also one of the limitations while applying the LCC concept. The consequences of an emission or impact may never end, even if the possibilities of following and modeling them decrease as time goes by. The depreciation of future impacts, by narrowing system borders or discounting as economists do, is particularly important to recognize when dealing with global warming effects or depletion of natural resources (Azar & Sterner, 1996). Another dimension is the inconsistent estimation methods in handling environmental costs and impacts. Many LCCA researchers and practitioners argue that some existing studies use socio-economic approaches, while others use engineering approaches in estimating costs related to the environment issues. This argument shows inconsistency in the estimation methods, reflecting the disagreement about the extent of the impacts of a highway project on the surrounding environment. Traditionally, LCCA models treat input variables as discrete, fixed values where a conservative "best guess" of the value o...

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...um supplies in the Middle East region are estimated to range from $6 to $60 billion annually (Romm & Curtis, 1996). • Economic vulnerability: dependence on imported petroleum makes a region vulnerability to economically harmful price shocks (sudden price increases) and supply disruptions. For example, the last three major oil price shocks were followed by an economic recession. • Higher world oil prices: High U.S. demand increases international oil prices (the elasticity of world oil price with respect to U.S. demand is estimated at 0.3 to 1.1), imposing a financial cost on all oil consumers (Smith, 2009). Pollution Damage from Agency Activities • Roadkills: Animals killed directly by motor vehicles. Road kills are a major cause of death for many large mammals, including several threatened species. • Road Aversion and other Behavioural Modifications: Animals behaviour and movement patterns are affected by roads; become accustomed to roads, and are therefore more vulnerable to harmful interactions with humans. • Population Fragmentation and Isolation: By forming a barrier to species movement, roads prevent interaction and cross breeding between population groups of the same species. This reduce...

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...ort. 1. INTRODUCTION The complexity of environmental issues can lead to unpredictable investment decisions among investors and other stakeholders. For many economists and researchers, life cycle costing (LCC) is a useful approach for mitigating and managing this problem. Life cycle cost analysis (LCCA) is a tool that attempts to identify and quantify all significant costs involved in acquiring, owing and operating physical assets over their useful lives (Woodward, 1997). However, current LCC may not provide appropriate solutions due to its limitation in handling environmentally related costs (Gluch & Baumann, 2004). Surahyo and El-Diraby (2009) have highlighted that there are inconsistent estimation methods in current studies relating to environmental costs in highway projects. There is also an unclear boundary in identifying such costs in highway infrastructure. Gluch & Baumann (2004) emphasise that there are limitations on current LCCA models, so further improvement of LCC in handling the environmental context is needed. Since investors are always facing problems of ambiguity and making irrational decisions, there is a need for decision support tools that are able to identify environmentally related c...

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...environmental benefits and sustainability outcome. KEY WORDS: Environmental, life-cycle cost analysis, highway, infrastructure, decision support. 1. INTRODUCTION The complexity of environmental issues can lead to unpredictable investment decisions among investors and other stakeholders. For many economists and researchers, life cycle costing (LCC) is a useful approach for mitigating and managing this problem. Life cycle cost analysis (LCCA) is a tool that attempts to identify and quantify all significant costs involved in acquiring, owing and operating physical assets over their useful lives (Woodward, 1997). However, current LCC may not provide appropriate solutions due to its limitation in handling environmentally related costs (Gluch & Baumann, 2004). Surahyo and El-Diraby (2009) have highlighted that there are inconsistent estimation methods in current studies relating to environmental costs in highway projects. There is also an unclear boundary in identifying such costs in highway infrastructure. Gluch & Baumann (2004) emphasise that there are limitations on current LCCA models, so further improvement of LCC in handling the environmental context is needed. Since investors are always facing p...

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...estment evaluation for highway are primarily concerned with direct market costs, such as road construction and maintenance, travel time, vehicle operating costs and crash damages and how these vary depending on roadway conditions. Other types of studies incorporate environmental impacts, primarily air pollution, but sometimes also noise and water pollution and various categories of land use impacts. Some studies have only considered these as the external costs. The results of these studies often differ significantly, but this can be explained by the differences in their methodology and scope (Quinet, 2004). While identifying environmental costs in highway investment, two situations are of interest in LCC: one is that of estimating the full life cycle cost of a project or decision, and another is that of trying to increase production efficiency and focusing on cost elements related to the environment. In the first case, only downstream costs are of interest. In the second case, all costs related to environmental issues are of interest. When deciding upon which environment related costs to include in the study, there are borders that need to be taken into account. Environment related costs and is...

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...as, 2008). These barriers also involve maintenance costs during the highway infrastructure operation stage. Finally, solid waste generation and management costs are other costs and issues have ranked significant, by the stakeholders, in the management of highway infrastructure. Solid waste is usually generated during the construction, maintenance and rehabilitation stages of highway infrastructure. This waste imposes a variety of environmental, human health, aesthetic, and financial costs. Some legislation and policies are designed to ensure that the disposal of materials is properly managed (Hao, Hills, & Huang, 2007). Consequently, legislation makes it mandatory for the stakeholder to prepare a relevant budget for managing the disposal of solid waste. 6. CONCLUSION Highway infrastructure development is an integral part of the modern society. Yet it often has direct implications to the environment. Environmental issues usually involve unpredictable costs because of their complexity and uncertainty in relation to forecasting future consequences. These costs may cause the investors making an unreliable investment judgement on highway development. To solve such a problem, this research attempts to integrate ...

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... complexity of environmental issues can lead to unpredictable investment decisions among investors and other stakeholders. For many economists and researchers, life cycle costing (LCC) is a useful approach for mitigating and managing this problem. Life cycle cost analysis (LCCA) is a tool that attempts to identify and quantify all significant costs involved in acquiring, owing and operating physical assets over their useful lives (Woodward, 1997). However, current LCC may not provide appropriate solutions due to its limitation in handling environmentally related costs (Gluch & Baumann, 2004). Surahyo and El-Diraby (2009) have highlighted that there are inconsistent estimation methods in current studies relating to environmental costs in highway projects. There is also an unclear boundary in identifying such costs in highway infrastructure. Gluch & Baumann (2004) emphasise that there are limitations on current LCCA models, so further improvement of LCC in handling the environmental context is needed. Since investors are always facing problems of ambiguity and making irrational decisions, there is a need for decision support tools that are able to identify environmentally related costs in highway projects. This...

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...elated cost elements and issues within highway projects. Environmental cost factors were explored on an integral basis through literature review and quantitative approaches. The most important ones, as ranked by industry experts, were then evaluated and integrated into an existing LCCA model for further development. The resulting model will provide valuable references and decision support tools to stakeholders for use in investments decisions for highway projects. 2. LCC CONCEPT IN THE ENVIRONMENTAL CONTEXT The literature review suggested limitations with the use of most existing LCCA models (Gerbrandt & Berthelot, 2007; Hong & Hastak, 2007; Lagaros, 2007). One such limitation is the omission of environmental costs in the life cycle cost analysis in highway projects. Many LCCA methods and software have excluded environmental costs because such costs are normally difficult to measure and the values related with user and environmental issues are often disputed. Time is also one of the limitations while applying the LCC concept. The consequences of an emission or impact may never end, even if the possibilities of following and modeling them decrease as time goes by. The depreciation of future impacts, by narrow...

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...jects. Environmental cost factors were explored on an integral basis through literature review and quantitative approaches. The most important ones, as ranked by industry experts, were then evaluated and integrated into an existing LCCA model for further development. The resulting model will provide valuable references and decision support tools to stakeholders for use in investments decisions for highway projects. 2. LCC CONCEPT IN THE ENVIRONMENTAL CONTEXT The literature review suggested limitations with the use of most existing LCCA models (Gerbrandt & Berthelot, 2007; Hong & Hastak, 2007; Lagaros, 2007). One such limitation is the omission of environmental costs in the life cycle cost analysis in highway projects. Many LCCA methods and software have excluded environmental costs because such costs are normally difficult to measure and the values related with user and environmental issues are often disputed. Time is also one of the limitations while applying the LCC concept. The consequences of an emission or impact may never end, even if the possibilities of following and modeling them decrease as time goes by. The depreciation of future impacts, by narrowing system borders or discounting as ...

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... are numerous and dispersed, and have relatively high damage costs because motor vehicles operate close to people. • Transportation: Transportation is a major contributor of many air pollutants. These shares are even higher in many areas were people congregate, such as cities, along highways and in tunnels. Resource Consumption • Energy Security: This includes economic and military costs associated with protecting access to petroleum resources. National security costs associated with defending petroleum supplies in the Middle East region are estimated to range from $6 to $60 billion annually (Romm & Curtis, 1996). • Economic vulnerability: dependence on imported petroleum makes a region vulnerability to economically harmful price shocks (sudden price increases) and supply disruptions. For example, the last three major oil price shocks were followed by an economic recession. • Higher world oil prices: High U.S. demand increases international oil prices (the elasticity of world oil price with respect to U.S. demand is estimated at 0.3 to 1.1), imposing a financial cost on all oil consumers (Smith, 2009). Pollution Damage from Agency Activities • Roadkills: Animals killed directly by motor vehicles. Road...

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...costs in highway projects ENVIRONMENTAL CATEGORY FACTORS LEAD TO IMPACTS AND COSTS Noise Pollution • Type of vehicle. Motorcycles, heavy vehicles (trucks and buses), and vehicles with faulty exhaust systems produce high noise levels. • Traffic speed, stops and inclines. Lower speeds tend to produce less engine, wind and road noise. Engine noise is greatest when a vehicle is accelerating.. Aggressive driving, with faster acceleration and harder stopping, increases noise. • Pavement condition and type. Rougher surfaces tend to produce more tire noise, and certain pavement types emit less noise (Ahammed & Tighe, 2008). • Barriers and distance. Walls and other structures, trees, hills, distance and soundresistant buildings (e.g., double-paned windows) tend to reduce noise impacts. Air Pollution • Mobile Emission: It is difficult to control given the reason that they are numerous and dispersed, and have relatively high damage costs because motor vehicles operate close to people. • Transportation: Transportation is a major contributor of many air pollutants. These shares are even higher in many areas were people congregate, such as cities, along highways and in tunnels. Resource Consumption • Energy Security:...

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...5 Air pollution effects on human health 3.63 1.17 15 Fuel consumption 3.40 1.11 17 Vehicles engine acceleration noise 3.37 1.19 18 Energy consumption 3.32 1.01 19 Driver attitudes 3.05 1.3 20 Cost of barriers is also ranked as the third highest importance. Respondents mentioned that the construction of barriers is important to reduce noise impact and dust emission to the real estate near to the highway. Barriers, such as walls and other structures, trees, and hills, involve a huge portion of the cost during the construction stage, which is consistent with the viewpoint from literature review (Arenas, 2008). These barriers also involve maintenance costs during the highway infrastructure operation stage. Finally, solid waste generation and management costs are other costs and issues have ranked significant, by the stakeholders, in the management of highway infrastructure. Solid waste is usually generated during the construction, maintenance and rehabilitation stages of highway infrastructure. This waste imposes a variety of environmental, human health, aesthetic, and financial costs. Some legislation and policies are designed to ensure that the disposal of materials is properly managed (Hao, Hill...

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...es within highway projects. Environmental cost factors were explored on an integral basis through literature review and quantitative approaches. The most important ones, as ranked by industry experts, were then evaluated and integrated into an existing LCCA model for further development. The resulting model will provide valuable references and decision support tools to stakeholders for use in investments decisions for highway projects. 2. LCC CONCEPT IN THE ENVIRONMENTAL CONTEXT The literature review suggested limitations with the use of most existing LCCA models (Gerbrandt & Berthelot, 2007; Hong & Hastak, 2007; Lagaros, 2007). One such limitation is the omission of environmental costs in the life cycle cost analysis in highway projects. Many LCCA methods and software have excluded environmental costs because such costs are normally difficult to measure and the values related with user and environmental issues are often disputed. Time is also one of the limitations while applying the LCC concept. The consequences of an emission or impact may never end, even if the possibilities of following and modeling them decrease as time goes by. The depreciation of future impacts, by narrowing system borders or...