Economic Analysis for Installation of Electrical Cables into Utility Tunnels in China

Abstract

The construction of utility tunnels is increasingly encouraged urban areas as urbanization proceeds at high speed in China. As one of the major urban utilities, electrical cables are required to be installed in utility tunnels. However, the installation of electrical cables into utility tunnels is perceived to be less cost-effective than overhead wire projects and cable trench projects. This article aims to conduct an economic analysis of both the costs and benefits of installing electrical cables in utility tunnels, and to compare the economic and social costs of utility tunnels and traditional transmission projects. The results indicate that the installation of electrical cables in utility tunnels is more economically sustainable than cable trench projects, but less cost-effective than overhead line projects. Considering the factor of land savings values, electrical cables in utility tunnels were found to be economically feasible. In order to encourage the installation of electrical cables in utility tunnels, it is recommended to increase direct financial support of electrical companies, to allocate the benefits land savings values between the government and utility companies, and to calculate standard ratios of construction costs of electrical cables and other utilities. These findings enrich the literature on utility tunnels and are expected to guide decision-making on the installation of electrical cables in tunnels.