Preemption techniques are designed to provide preferential treatments to bu
ses at signalized intersections. A preemption strategy, if properly designe
d, can provide continuous green phases to buses at successive intersections
, thereby reducing delays and travel times along the bus-street. It can als
o potentially increase delays and travel times along the cross street. A pr
ocedure for economic evaluation of preemption projects is presented in this
paper, followed by a case study demonstration. It is a variation of benefi
t-cost analysis that provides an estimate of the maximum investment that ca
n be justified in a signal preemption project by way of savings in delay, f
uel consumption, and emissions. The TRAF-NETSIM model was used to assess th
e operational consequences of signal preemption. The procedure is found via
ble and the case study results appear to be reasonable, and sensitive to ch
anges in interest rates and project lives.