A Sustainable Asset Valuation of Non-Motorized Transport in Coimbatore
Summary
This fact sheet presents a Sustainable Asset Valuation (SAVi) of a proposed Non-Motorized Transport (NMT) network in Coimbatore, India. It compares traditional benefit-cost ratios with a sustainable approach that accounts for social and environmental externalities, arguing that the project provides significant societal value despite appearing non-viable under traditional financial analysis.
Key insights
- The Coimbatore City Municipal Corporation's NMT Plan involves the creation of 300 km of NMT routes to be implemented over 15 years and completed by 2035. The project is expected to benefit approximately 1 million people, representing 60% of the city's population, and could reduce projected CO2 emissions from passenger transport by up to 13%.
- Using the SAVi methodology for a project period from 2022 to 2045 (15 years of construction and 8 years of operation), the NMT network is estimated to generate a cumulative net benefit of USD 486.1 million (INR 37,104 million) against investment costs of USD 129.7 million (INR 9,895 million).
- The largest single impact of the NMT network is the avoidance of costs related to traffic accidents, valued at USD 395 million (INR 30,144 million). Other significant benefits include public health improvements—valued at USD 89.9 million (INR 6,857 million) through increased physical activity and reduced air pollution—and retail revenue increases of USD 35.8 million.
- There is a stark contrast between traditional and sustainable valuation methods: a traditional benefit-cost ratio (BCR) considering only tangible impacts is 0.47 per USD invested, which would typically render the project non-investment-worthy. In contrast, the sustainable benefit-cost ratio (S-BCR), which includes societal and environmental externalities, is 4.75.
Cite the original document
- APA
- Kapetanakis, M., Nino, N., Casier, L., & Bassi, A. M. (2023). A Sustainable Asset Valuation of Non-Motorized Transport in Coimbatore. International Institute for Sustainable Development. https://www.iisd.org/system/files/2023-05/savi-non-motorized-transport-coimbatore-india-brochure.pdf
- Chicago
- Kapetanakis, Michail, Nathalia Nino, Liesbeth Casier, and Andrea M. Bassi. A Sustainable Asset Valuation of Non-Motorized Transport in Coimbatore. International Institute for Sustainable Development, 2023. https://www.iisd.org/system/files/2023-05/savi-non-motorized-transport-coimbatore-india-brochure.pdf.
- Wikipedia
- {{cite report |last1=Kapetanakis |first1=Michail |last2=Nino |first2=Nathalia |last3=Casier |first3=Liesbeth |last4=Bassi |first4=Andrea M. |title=A Sustainable Asset Valuation of Non-Motorized Transport in Coimbatore |publisher=International Institute for Sustainable Development |date=May 2023 |url=https://www.iisd.org/system/files/2023-05/savi-non-motorized-transport-coimbatore-india-brochure.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{kapetanakis2023sustainable, author = {Kapetanakis, Michail and Nino, Nathalia and Casier, Liesbeth and Bassi, Andrea M.}, title = {{A Sustainable Asset Valuation of Non-Motorized Transport in Coimbatore}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = may, url = {https://www.iisd.org/system/files/2023-05/savi-non-motorized-transport-coimbatore-india-brochure.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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