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Open issues in the practice of cost benefit analysis of transport projects

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  • Grimaldi, Raffaele
  • Beria, Paolo

Abstract

Cost benefit analysis is the commonly used tool to evaluate transport investments. Despite its diffusion, both the technicalities and the purpose of the analysis differ among countries. This paper focuses on some common issues and lacks still present in the evaluation of transport projects, in the light of the most recent contributions in the literature. We try to clarify two open issues: the treatment of the mode shifting component of induced traffic, the treatment of lost fuel taxes due to mode shift and of generated fare revenues and the evaluation of impacts during construction and maintenance. Moreover the paper describes and discuss the use of some advanced techniques: the use of conversion factors to assess the shadow value for labour costs and public funds, the treatment of wider economic effects, the use of distributive analysis and the use of risk analysis.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:53766
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    References listed on IDEAS

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    Cited by:

    1. Beria, Paolo & Grimaldi, Raffaele, 2014. "Cost Benefit Analysis to assess urban mobility plans. Consumers’ surplus calculation and integration with transport models," MPRA Paper 59590, University Library of Munich, Germany.

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    More about this item

    Keywords

    cost benefit analysis; transport project; consumer surplus;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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