3.1 Consumer Surplus
Consumer surplus is the additional benefits consumers receive from the purchase of a service
above the price actually paid for that service. This measurement is used to assess the broad
economic impacts of a transportation investment. It exists because consumers are willing to pay
a higher price than that actually charged for the service. A transportation improvement is seen as
providing benefits in terms of time and costs savings, as well as convenience, comfort, and
reliability to users of the mode. In this context, the consumer surplus is the difference between
3.2 System Revenues
Revenues reflect additional consumer surplus benefits to users of the system, benefits for which
they pay directly. The decision to include revenues in a benefits analysis (as approved by the
U.S. Department of Transportation) is based on the notion that revenues are a proxy for the
increase in consumer surplus that is generated by a travel option but accrues to system providers
in the form of increased revenue. Total system revenues also include ancillary revenues, found to
add an additional eight percent to the farebox revenues. Users’ Benefits –