An approach for monetisation of social impacts accruing from rural roads

Kakiiza, Robert Kagaba (2025). An approach for monetisation of social impacts accruing from rural roads. University of Birmingham. Ph.D.

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Abstract

This PhD thesis is about finding the best methodology to be used in attaching value to social benefits accruing from rural roads through Monetisation of social benefits and costs. This PhD thesis specifically discusses the valuation of social benefits in monetary terms. The monetization of social benefits may be used in prioritizing maintenance of rural roads in low-income countries a process currently not taken care of by many available valuation methodologies. The closest of these is the Road Economic Decision Model (RED), a World Bank methodology which considers low volume roads but not rural roads with traffic volumes less than 50 vehicles per day. The thesis consists of literature review on the methodology techniques, proposed methodology for carrying out the research, the case study to assess the implementation of the proposed methodology and a discussion on the findings as well as the recommendations for further research. The available literature indicates that Sub-Saharan Africa has approximately 700,000 kilometres of rural roads, with half of them in poor condition. These rural roads however are characterized by poor maintenance regimes, low funding and in many instances limited management. Despite inadequate maintenance, rural roads contribute significantly to the economic and social development of the areas they traverse as well as provision of access to markets and amenities such as schools, health centers, religious centers, tourism centers and farmlands. Despite rural roads being drivers of development in the communities they serve, decision makers are reluctant to allocate adequate funding for the improvement and maintenance.

The literature also shows that there is no dedicated monetizing methodology for social benefits accruing from rural roads, however there are a number of techniques in use for other sectors such as environment, water and agriculture. In lieu of this, there is need to develop a methodology which can be used to monetize the social benefit from rural roads. Based on the theory of change process, the outcomes are assessed, and the associated impacts as well as the social return on investments (SROI) ratio are calculated. The SROI ration measures the value of the benefits or costs in line with the investment in monetary terms. To demonstrate the effectiveness of SROI technique, a case study in Kamuli district in Uganda was adopted, field work carried out using survey tools and the respective data collected and collated for analysis.

Results for all ten roads surveyed indicated positive correlation in the figures obtained through SROI calculations. The results provided proof that SROI can be used to monetise social benefits accruing from rural roads. It’s however, important to note that monetization based on SROI is not void of limitations. There is need to validate the data inputs, analysis and modelling. Valuation of social benefits should be considered as an ongoing process other than an event. Therefore, Monetisation of social benefit for a given community be carried out regularly.

Type of Work:

Thesis (Doctorates > Ph.D.)

Award Type:

Doctorates > Ph.D.

Supervisor(s):