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Cost-Benefit Analysis for Transport Networks: Theory and Application

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  • Yukihiro Kidokoro

Abstract

Practical methods for estimating benefits corresponding to second-best situation are derived by modelling a congestion-prone transport network explicitly. A change in total benefit of an investment in transport infrastructure can be calculated in three ways: (a) the sum of the changes in consumers' and producers' surpluses in all routes; (b) the sum of the changes in consumers' and producers' surpluses in the invested routes, plus the change in the deadweight loss in all other routes; and (c) the change in the total benefits in the first-best case a change in the deadweight loss in all routes. Applying method (c), the author demonstrates that the final benefits of distortion-relieving policies are simply the sum of a change in the deadweight loss in all routes. Theoretical results are derived in practically useful forms, and then illustrated with examples. © The London School of Economics and the University of Bath 2004

Suggested Citation

  • Yukihiro Kidokoro, 2004. "Cost-Benefit Analysis for Transport Networks: Theory and Application," Journal of Transport Economics and Policy, University of Bath, vol. 38(2), pages 275-307, May.
    • Handle: RePEc:tpe:jtecpo:v:38:y:2004:i:2:p:275-307
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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Perché facciamo così l’analisi costi-benefici*
      by punto in La Voce on 2019-01-29 10:05:48

    Citations

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    Cited by:

    1. Kidokoro, Yukihiro, 2006. "Benefit estimation of transport projects--a representative consumer approach," Transportation Research Part B: Methodological, Elsevier, vol. 40(7), pages 521-542, August.
    2. Rich, Jeppe & Nielsen, Otto Anker, 2007. "A socio-economic assessment of proposed road user charging schemes in Copenhagen," Transport Policy, Elsevier, vol. 14(4), pages 330-345, July.
    3. Katrien De Langhe & Hilde Meersman & Christa Sys & Eddy Van de Voorde & Thierry Vanelslander, 2019. "How to make urban freight transport by tram successful?," Journal of Shipping and Trade, Springer, vol. 4(1), pages 1-23, December.
    4. Yoshitsugu Kanemoto, 2011. "Surplus Theory," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 20, Edward Elgar Publishing.
    5. Eliasson, Jonas & Fosgerau, Mogens, 2019. "Cost-benefit analysis of transport improvements in the presence of spillovers, matching and an income tax," Economics of Transportation, Elsevier, vol. 18(C), pages 1-9.
    6. Grimaldi, Raffaele & Beria, Paolo, 2013. "Open issues in the practice of cost benefit analysis of transport projects," MPRA Paper 53766, University Library of Munich, Germany.
    7. Paul Besseling & Maarten van 't Riet, 2009. "Welfare analysis in transport networks," CPB Discussion Paper 130.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    8. Ninette Pilegaard & Mogens Fosgerau, 2008. "Cost Benefit Analysis of a Transport Improvement in the Case of Search Unemployment," Journal of Transport Economics and Policy, University of Bath, vol. 42(1), pages 23-42, January.
    9. Calthrop, Edward & De Borger, Bruno & Proost, Stef, 2010. "Cost-benefit analysis of transport investments in distorted economies," Transportation Research Part B: Methodological, Elsevier, vol. 44(7), pages 850-869, August.
    10. Kidokoro, Yukihiro, 2006. "Regulatory reform and the congestion of urban railways," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(1), pages 52-73, January.
    11. Beria, Paolo & Grimaldi, Raffaele, 2013. "Appraising the benefits of bottleneck removal in rail transport: a simplified CBA approach," MPRA Paper 46889, University Library of Munich, Germany.
    12. Melendez-Hidalgo, Jose & Rietveld, Piet & Verhoef, Erik, 2007. "On the change in surpluses equivalence: measuring benefits from transport infrastructure investments," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 36, pages 107-140.
    13. Maarten van 't Riet, 2011. "The link approach to measuring consumer surplus in transport networks," CPB Discussion Paper 199, CPB Netherlands Bureau for Economic Policy Analysis.
    14. Maarten van 't Riet, 2011. "The link approach to measuring consumer surplus in transport networks," CPB Discussion Paper 199.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    15. Knudsen, M.Aa. & Rich, J., 2013. "Ex post socio-economic assessment of the Oresund Bridge," Transport Policy, Elsevier, vol. 27(C), pages 53-65.
    16. repec:mul:je8794:doi:10.1429/34355:y:2011:i:1:p:125 is not listed on IDEAS
    17. Stef Proost & Fay Dunkerley & Saskia Loo & Nicole Adler & Johannes Bröcker & Artem Korzhenevych, 2014. "Do the selected Trans European transport investments pass the cost benefit test?," Transportation, Springer, vol. 41(1), pages 107-132, January.
    18. Paul Besseling & Maarten van 't Riet, 2009. "Welfare analysis in transport networks," CPB Discussion Paper 130, CPB Netherlands Bureau for Economic Policy Analysis.

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