Driving Economic Value: Assessing the Financial Impact of Dynamic Message Signs on Freeways

Abushattal, Mousa Ahmad; Alhomaidat, Fadi; Alsanat, Husam; Kwigizile, Valerian; Isaria Mwende, Sia · 2025 · Crossref

DOI: 10.28991/cej-2025-011-07-023

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Summary

This study addresses the lack of comprehensive financial evaluations for Dynamic Message Signs (DMSs) within Intelligent Transportation Systems. While existing literature extensively covers the operational and safety benefits of DMSs, such as crash reduction and travel time reliability, there is a gap in quantifying their economic viability against installation and maintenance costs. The research aims to fill this void by estimating the Benefit-Cost Ratios (BCRs) for three specific DMS applications on freeways: route choice guidance, weather advisories, and work zone management. By providing a data-driven financial framework, the study seeks to support strategic investment decisions for transportation agencies. The methodology involved field experiments at three distinct freeway locations in Michigan, selected to represent varying traffic conditions. For route choice analysis, Bluetooth sensors and video cameras tracked vehicle diversion rates on I-75 and I-675 in Saginaw during an incident, utilizing a 35% diversion rate derived from prior modeling. For weather advisories, a solitary DMS on I-96 in Grand Rapids was monitored to measure speed reductions in response to "road may be slippery" messages, using an exponential model to estimate crash reductions based on observed speed changes. For work zone management, Portable Changeable Message Signs (PCMS) were evaluated on I-96 in Saugatuck, comparing travel times when the sign was active versus inactive to quantify time savings. Costs were annualized over a 15-year lifespan for permanent DMSs or calculated as lump sums for PCMS, while benefits were derived from travel time savings and crash cost reductions, adjusted for inflation. The results indicate that DMS deployments yield positive economic returns across all tested applications. For route guidance, the study calculated a BCR of 1.032, indicating a cost-effective investment driven by travel time savings during incidents. Sensitivity analysis revealed a strong positive correlation (0.93) between Annual Average Daily Traffic and BCR, with diversion rate identified as the most critical variable for economic success. Weather advisory messages demonstrated the highest financial impact, achieving a BCR of 6.0 due to significant safety benefits from speed reductions and associated crash avoidance. Work zone applications using PCMS yielded a BCR of 1.22 for a three-day deployment, with benefits concentrated during peak traffic hours. The analysis noted that the economic viability of PCMS increases with the duration of the work zone. The study concludes that DMSs provide substantial economic advantages, validating their deployment through rigorous financial metrics rather than solely qualitative assessments. The findings suggest that transportation agencies should prioritize DMS installations in high-volume corridors and contexts with high potential for driver diversion or safety improvement. By establishing clear BCRs, the research offers a robust tool for optimizing ITS asset allocation, ensuring that investments in dynamic messaging technologies are financially sound and strategically aligned with traffic conditions.

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• signage environment