Summary: The Alaska DOT and Public Facilities are presently evaluating the use of recycled rubber in hot mix pavement applications. The benefits of adding rubber to the mix include increased skid resistance under icy conditions, improved flexibility and crack resistance, elimination of a solid waste, and reduced traffic noise. The major disadvantage of these rubber-modified mixes is their high cost in relation to conventional asphaltic concrete pavements. A comparison of the economics of the rubber-modified system with that of the conventional pavement shows that the rubber-modified surfacing is cost-effective. This conclusion is based on an analysis of life-cycle costs, but does not include potential intangible benefits of the rubber-modified system, such as increased skid resistance and noise reduction.