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Cost Benefit Analysis to assess urban mobility plans. Consumers’ surplus calculation and integration with transport models

Author

Listed:
  • Beria, Paolo
  • Grimaldi, Raffaele

Abstract

Transport mobility plans, especially at the urban scale, are commonly produced by administrations. However, the decisions involved are often taken on a qualitative basis or, at best, by setting some indicators and verifying how much a plan or a scenario reaches the politically decided targets (e.g. “increasing by 10% the use of bike”). However, given that decisions on plans involve relevant public investments and may also determine radical changes in users’ costs, a more quantitative and comprehensive approach to the evaluation is needed. Cost Benefit Analysis is the tool commonly used to assess public expenditure, but its application to mobility plans introduces further practical and theoretical complexity. The aim of the paper is to discuss how CBA can be used to assess complex and multi-modal mobility plans (involving for example both infrastructural investments and lighter sustainable mobility policies). Firstly we will discuss which are the complexities involved by plan assessments vs. infrastructure assessments. Secondly, we will revise the available approaches, namely the Generalised Costs comparison approach, the Rule of Half and the logsum functions for the perfect integration between CBA and transport models. Thirdly, we will comment the main advantages and problems of the last approach, namely, the logsum, clarifying why it is the most suitable for the assessment of plans made of a broad range of policies and actions. Finally, we will outline an ongoing application for the assessment of the SUMP (Sustainable Urban Mobility Plan) of Milan’s municipality.

Suggested Citation

  • 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.
  • Handle: RePEc:pra:mprapa:59590
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    References listed on IDEAS

    as
    1. Alain Bonnafous & Pablo Jensen, 2005. "Ranking Transport Projects by their Socioeconomic Value or Financial Interest rate of return?," Post-Print halshs-00079721, HAL.
    2. de Jong, Gerard & Daly, Andrew & Pieters, Marits & van der Hoorn, Toon, 2007. "The logsum as an evaluation measure: Review of the literature and new results," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(9), pages 874-889, November.
    3. 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.
    4. Bonnafous, Alain & Jensen, Pablo, 2005. "Ranking transport projects by their socioeconomic value or financial internal rate of return?," Transport Policy, Elsevier, vol. 12(2), pages 131-136, March.
    5. Banister, David, 2008. "The sustainable mobility paradigm," Transport Policy, Elsevier, vol. 15(2), pages 73-80, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    cost benefit analysis; transport planning; transport models; rule of half; logsum; Milan; Italy;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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