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A New Role for Cost-Benefit Analysis in Canadian Transportation Infrastructure Investment

Author

Listed:
  • David Lewis
  • Ian Currie

Abstract

Encouraging greater reliance on Cost Benefit Analysis (CBA) as the organizing framework for facilitating discursive democratic procedures is an area in which the Canadian federal government can reinvigorate its role in the development of transportation infrastructure and physical infrastructure in general.The authors examine the microeconomic foundations of traditional CBA models. They find them too narrow to support the promise of CBA as a materially useful tool to help arrive at evidentiary consensus on major transportation infrastructure projects. To achieve its full promise, CBA requires an integration of advances in welfare economics, probability, discourse theory, and capability analysis.A framework for a reformulated CBA is presented along with an application of the approach in the case of gaining community evidentiary consensus on expansion of the Vancouver International Airport in the early 1990s. Potential implications for the federal government infrastructure policies today are explored and recommendations are made.

Suggested Citation

  • David Lewis & Ian Currie, 2016. "A New Role for Cost-Benefit Analysis in Canadian Transportation Infrastructure Investment," CSLS Research Reports 2016-02, Centre for the Study of Living Standards.
    • Handle: RePEc:sls:resrep:1602
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    File URL: http://www.csls.ca/reports/csls2016-02.pdf
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    References listed on IDEAS

    as
    1. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-1196, September.
    2. Marco Gonzalez-Navarro & Climent Quintana-Domeque, 2010. "Street Pavement: Results from an Infrastructure Experiment in Mexico," Working Papers 1247, Princeton University, Department of Economics, Industrial Relations Section..
    3. Sugden, Robert, 1993. "Welfare, Resources, and Capabilities: A Review [Inequality Reexamined]," Journal of Economic Literature, American Economic Association, vol. 31(4), pages 1947-1962, December.
    4. Marco Gonzalez-Navarro & Climent Quintana-Domeque, 2010. "Street Pavement: Results from an Infrastructure Experiment in Mexico," Working Papers 1247, Princeton University, Department of Economics, Industrial Relations Section..
    5. James M. Buchanan, 1954. "Social Choice, Democracy, and Free Markets," Journal of Political Economy, University of Chicago Press, vol. 62(2), pages 114-114.
    6. David Lewis, 2011. "Economic Perspectives on Transport And Equality," International Transport Forum Discussion Papers 2011/9, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Transportation; Investment; Infrastructure; Canada; Cost-Benefit Analysis;
    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
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • N42 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: 1913-
    • N72 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: 1913-
    • N92 - Economic History - - Regional and Urban History - - - U.S.; Canada: 1913-

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