IDEAS home Printed from https://ideas.repec.org/a/eee/retrec/v88y2021ics073988592030144x.html
   My bibliography  Save this article

An Australian perspective on real-life cost-benefit analysis and assessment frameworks for transport infrastructure investments

Author

Listed:
  • Chi, Sae
  • Bunker, Jonathan

Abstract

Cost-benefit analysis (CBA) is the most commonly used economic assessment tool for transport infrastructure investments. There are radically different approaches to its use across the world, highlighting the need for local research. While CBA is extensively reported on in many countries, an Australian perspective is less commonly found. This study aims to provide an Australian perspective on the use and efficiency of CBA in transport infrastructure investment assessments. It examines the guidelines used in practice and the CBA of real-life transport projects in relation to the costs and benefits considered in CBA and the CBA as a tool to inform investment decision making. This study identified the implications for wider CBA use, including the practical issues that should be addressed in guidelines and the challenges of implementing CBA outcomes in investment decision making. Improving CBA practices and assessments of transport infrastructure investments contributes to ensuring that investment decision making is well-informed.

Suggested Citation

  • Chi, Sae & Bunker, Jonathan, 2021. "An Australian perspective on real-life cost-benefit analysis and assessment frameworks for transport infrastructure investments," Research in Transportation Economics, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:retrec:v:88:y:2021:i:c:s073988592030144x
    DOI: 10.1016/j.retrec.2020.100946
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S073988592030144X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.retrec.2020.100946?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mackie, Peter & Worsley, Tom & Eliasson, Jonas, 2014. "Transport appraisal revisited," Research in Transportation Economics, Elsevier, vol. 47(C), pages 3-18.
    2. Dimitriou, Harry T. & Ward, E. John & Dean, Marco, 2016. "Presenting the case for the application of multi-criteria analysis to mega transport infrastructure project appraisal," Research in Transportation Economics, Elsevier, vol. 58(C), pages 7-20.
    3. Jan Anne Annema & Carl Koopmans, 2015. "The practice of valuing the environment in cost-benefit analyses in transport and spatial projects," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 58(9), pages 1635-1648, September.
    4. P.C. Bueno & J.M. Vassallo & K. Cheung, 2015. "Sustainability Assessment of Transport Infrastructure Projects: A Review of Existing Tools and Methods," Transport Reviews, Taylor & Francis Journals, vol. 35(5), pages 622-649, September.
    5. Hugo Priemus & Bent Flyvbjerg & Bert van Wee (ed.), 2008. "Decision-Making on Mega-Projects," Books, Edward Elgar Publishing, number 4112.
    6. Bent Flyvbjerg, 2007. "Policy and Planning for Large-Infrastructure Projects: Problems, Causes, Cures," Environment and Planning B, , vol. 34(4), pages 578-597, August.
    7. Paolo Beria & Michele Giove & Maria Francesca Miele, 2012. "A Comparative Analysis Of Assessment Approaches. Six Cases From Europe," Articles, International Journal of Transport Economics, vol. 39(2).
    8. Vickerman, Roger, 2017. "Beyond cost-benefit analysis: the search for a comprehensive evaluation of transport investment," Research in Transportation Economics, Elsevier, vol. 63(C), pages 5-12.
    9. Börjesson, Maria & Jonsson, R. Daniel & Berglund, Svante & Almström, Peter, 2014. "Land-use impacts in transport appraisal," Research in Transportation Economics, Elsevier, vol. 47(C), pages 82-91.
    10. Asplund, Disa & Eliasson, Jonas, 2016. "Does uncertainty make cost-benefit analyses pointless?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 195-205.
    11. Odeck, James & Kjerkreit, Anne, 2019. "The accuracy of benefit-cost analyses (BCAs) in transportation: An ex-post evaluation of road projects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 120(C), pages 277-294.
    12. Marcelo Gordillo,Darwin & Mandri-Perrott,Xavier Cledan & House,Ruth Schuyler & Schwartz,Jordan Z., 2016. "Prioritizing infrastructure investment : a framework for government decision making," Policy Research Working Paper Series 7674, The World Bank.
    13. Bert van Wee & Lóránt A. Tavasszy, 2008. "Ex-ante Evaluation of Mega-Projects: Methodological Issues and Cost–Benefit Analysis," Chapters, in: Hugo Priemus & Bent Flyvbjerg & Bert van Wee (ed.), Decision-Making on Mega-Projects, chapter 3, Edward Elgar Publishing.
    14. Mouter, Niek, 2017. "Dutch politicians’ attitudes towards Cost-Benefit Analysis," Transport Policy, Elsevier, vol. 54(C), pages 1-10.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cao, Sheng & Xu, Haicheng & Xu, Yan & Wang, Xiaoshen & Zheng, Yingjie & Li, Yanling, 2023. "Assessment of the integrated benefits of highway infrastructure and analysis of the spatiotemporal variation: Evidence from 29 provinces in China," Socio-Economic Planning Sciences, Elsevier, vol. 90(C).
    2. Biancardo, Salvatore Antonio & Gesualdi, Michele & Savastano, Davide & Intignano, Mattia & Henke, Ilaria & Pagliara, Francesca, 2023. "An innovative framework for integrating Cost-Benefit Analysis (CBA) within Building Information Modeling (BIM)," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francis Marleau Donais & Irène Abi-Zeid & E. Owen D. Waygood & Roxane Lavoie, 2019. "A review of cost–benefit analysis and multicriteria decision analysis from the perspective of sustainable transport in project evaluation," EURO Journal on Decision Processes, Springer;EURO - The Association of European Operational Research Societies, vol. 7(3), pages 327-358, November.
    2. Mouter, Niek & Cabral, Manuel Ojeda & Dekker, Thijs & van Cranenburgh, Sander, 2019. "The value of travel time, noise pollution, recreation and biodiversity: A social choice valuation perspective," Research in Transportation Economics, Elsevier, vol. 76(C).
    3. Eliasson, Jonas & Savemark, Christian & Franklin, Joel, 2020. "The impact of land use effects in infrastructure appraisal," Transportation Research Part A: Policy and Practice, Elsevier, vol. 141(C), pages 262-276.
    4. Chiara Pancotti & Matteo Pedralli & Geert Smit & Silvia Vignetti, 2020. "Understanding transport project appraisal in its institutional dimension," Working Papers 201902, CSIL Centre for Industrial Studies.
    5. Bondemark, Anders & Sundbergh, Pia & Tornberg, Patrik & Brundell-Freij, Karin, 2020. "Do impact assessments influence transport plans? The case of Sweden," Transportation Research Part A: Policy and Practice, Elsevier, vol. 134(C), pages 52-64.
    6. Rothengatter, Werner, 2019. "Megaprojects in transportation networks," Transport Policy, Elsevier, vol. 75(C), pages 1-15.
    7. Martijn Leijten, 2013. "Real-world decision-making on mega-projects: politics, bias and strategic behaviour," Chapters, in: Hugo Priemus & Bert van Wee (ed.), International Handbook on Mega-Projects, chapter 4, pages 57-82, Edward Elgar Publishing.
    8. Bert van Wee & Piet Rietveld, 2013. "CBA: ex ante evaluation of mega-projects," Chapters, in: Hugo Priemus & Bert van Wee (ed.), International Handbook on Mega-Projects, chapter 12, pages 269-290, Edward Elgar Publishing.
    9. Thomopoulos, N. & Grant-Muller, S. & Tight, M.R., 2009. "Incorporating equity considerations in transport infrastructure evaluation: Current practice and a proposed methodology," Evaluation and Program Planning, Elsevier, vol. 32(4), pages 351-359, November.
    10. Ihsan Issa Ahmad Hosani & Fikri T. Dweiri & Udechukwu Ojiako, 0. "A study of cost overruns in complex multi-stakeholder road projects in the United Arab Emirates," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 0, pages 1-10.
    11. Willem K Korthals Altes, 2010. "The Financial Estimates and Results of Servicing Land in the Netherlands," Environment and Planning B, , vol. 37(5), pages 929-941, October.
    12. Mouter, Niek & Koster, Paul & Dekker, Thijs, 2021. "Contrasting the recommendations of participatory value evaluation and cost-benefit analysis in the context of urban mobility investments," Transportation Research Part A: Policy and Practice, Elsevier, vol. 144(C), pages 54-73.
    13. Dimitriou, Harry T. & Ward, E. John & Dean, Marco, 2016. "Presenting the case for the application of multi-criteria analysis to mega transport infrastructure project appraisal," Research in Transportation Economics, Elsevier, vol. 58(C), pages 7-20.
    14. Zhou, You & Zhang, Lingzhu & Chiaradia, Alain J F, 2021. "An adaptation of reference class forecasting for the assessment of large-scale urban planning vision, a SEM-ANN approach to the case of Hong Kong Lantau tomorrow," Land Use Policy, Elsevier, vol. 109(C).
    15. Bert van Wee & Jan Anne Annema & Hugo Priemus, 2013. "Model building for infrastructure initiatives," Chapters, in: Peter Karl Kresl & Jaime Sobrino (ed.), Handbook of Research Methods and Applications in Urban Economies, chapter 17, pages 423-441, Edward Elgar Publishing.
    16. Sandro Fabbro & Marco Dean, 2012. "More realistic national infrastructure strategies to connect regions with the global networks: the Italian case," ERSA conference papers ersa12p392, European Regional Science Association.
    17. Ihsan Issa Ahmad Hosani & Fikri T. Dweiri & Udechukwu Ojiako, 2020. "A study of cost overruns in complex multi-stakeholder road projects in the United Arab Emirates," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 11(6), pages 1250-1259, December.
    18. Pessino, Carola & Izquierdo, Alejandro & Vuletin, Guillermo, 2018. "Better Spending for Better Lives: How Latin America and the Caribbean Can Do More with Less," IDB Publications (Books), Inter-American Development Bank, number 9152.
    19. Mouter, Niek, 2017. "Dutch politicians’ attitudes towards Cost-Benefit Analysis," Transport Policy, Elsevier, vol. 54(C), pages 1-10.
    20. te Boveldt, Geert & Van Raemdonck, Koen & Macharis, Cathy, 2018. "A new railway tunnel under Brussels? Assessing political feasibility and desirability with competence-based multi criteria analysis," Transport Policy, Elsevier, vol. 66(C), pages 30-39.

    More about this item

    Keywords

    Cost-benefit analysis; Transport infrastructure investment; Transport planning; Transport economics; Project appraisal; Investment assessment; Investment prioritisation; Evaluation; Economic assessment;
    All these keywords.

    JEL classification:

    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:retrec:v:88:y:2021:i:c:s073988592030144x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620614/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.