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Some Norwegian Politicians' Use of Cost-Benefit Analysis

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  • Nyborg, Karine

Abstract

Members of the Norwegian Parliament were interviewed about their use of cost-benefit analysis in the political treatment of a road investment plan. Most respondents found the cost-benefit ratio useful as a screening device to pick projects requiring closer political attention but few seemed to actually use it to rank projects. Attitudes towards cost-benefit analysis varied along the left-right political axis, with politicians to the left being the most skeptical. These findings are consistent with a hypothesis that politicians rationally maximize subjective, but different, perceptions of social welfare. Copyright 1998 by Kluwer Academic Publishers

Suggested Citation

  • Nyborg, Karine, 1998. "Some Norwegian Politicians' Use of Cost-Benefit Analysis," Public Choice, Springer, vol. 95(3-4), pages 381-401, June.
    • Handle: RePEc:kap:pubcho:v:95:y:1998:i:3-4:p:381-401
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    Cited by:

    1. Volden, Gro Holst, 2018. "Public project success as seen in a broad perspective," Evaluation and Program Planning, Elsevier, vol. 69(C), pages 109-117.
    2. Niek Mouter & Paul Koster & Thijs Dekker, 2019. "Participatory Value Evaluation versus Cost-Benefit Analysis: comparing recommendations in the context of urban mobility investments," Tinbergen Institute Discussion Papers 19-046/VIII, Tinbergen Institute, revised 27 Jan 2020.
    3. Vigren, Andreas & Ljungberg, Anders, 2018. "Public Transport Authorities’ use of Cost-Benefit Analysis in practice," Research in Transportation Economics, Elsevier, vol. 69(C), pages 560-567.
    4. 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.
    5. Michael Makowsky & Richard Wagner, 2009. "From scholarly idea to budgetary institution: the emergence of cost-benefit analysis," Constitutional Political Economy, Springer, vol. 20(1), pages 57-70, March.
    6. Karine Nyborg & Inger Spangen, 2000. "Cost-Benefit Analysis and the Democratic Ideal," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 26, pages 83-93.
    7. Vargas, Andrés & Sarmiento Erazo, Juan Pablo & Diaz, David, 2020. "Has Cost Benefit Analysis Improved Decisions in Colombia? Evidence from the Environmental Licensing Process," Ecological Economics, Elsevier, vol. 178(C).
    8. Jussila Hammes , Johanna, 2017. "The impact of career concerns and cognitive dissonance on bureaucrats’ use of cost-benefit analysis," Working papers in Transport Economics 2017:5, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    9. 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.
    10. Nyborg, Karine, 2014. "Project evaluation with democratic decision-making: What does cost–benefit analysis really measure?," Ecological Economics, Elsevier, vol. 106(C), pages 124-131.
    11. Mouter, Niek & van Cranenburgh, Sander & van Wee, Bert, 2017. "An empirical assessment of Dutch citizens' preferences for spatial equality in the context of a national transport investment plan," Journal of Transport Geography, Elsevier, vol. 60(C), pages 217-230.
    12. Jan Anne Annema, 2013. "The use of CBA in decision-making on mega-projects: empirical evidence," Chapters, in: Hugo Priemus & Bert van Wee (ed.), International Handbook on Mega-Projects, chapter 13, pages 291-312, Edward Elgar Publishing.
    13. Bertoméu-Sánchez, Salvador & Estache, Antonio, 2017. "Unbundling political and economic rationality: A non-parametric approach tested on transport infrastructure in Spain," Transport Policy, Elsevier, vol. 59(C), pages 181-195.
    14. Halse, Askill Harkjerr & Fridstrøm, Lasse, 2019. "Explaining low economic return on road investments. New evidence from Norway," MPRA Paper 94389, University Library of Munich, Germany.
    15. Jussila Hammes, Johanna, 2012. "The political economy of infrastructure planning in Sweden: supporting analyses," Working papers in Transport Economics 2012:21, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    16. Wilson, Adam & Mitra, Raktim, 2020. "Implementing cycling infrastructure in a politicized space: Lessons from Toronto, Canada," Journal of Transport Geography, Elsevier, vol. 86(C).
    17. Bardal, Kjersti Granås, 2020. "Contradictory outcomes of cost-benefit analyses – Findings from Norwegian public-investment projects," Research in Transportation Economics, Elsevier, vol. 82(C).
    18. Niek Mouter, 2017. "Dutch politicians’ use of cost–benefit analysis," Transportation, Springer, vol. 44(5), pages 1127-1145, September.
    19. 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.
    20. Johanna Jussila Hammes, 2021. "The Impact of Career Concerns and Cognitive Dissonance on Bureaucrats’ Use of Benefit-Cost Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(2), pages 409-424, October.
    21. Sandberg Hanssen, Thor-Erik & Jørgensen, Finn, 2015. "Transportation policy and road investments," Transport Policy, Elsevier, vol. 40(C), pages 49-57.
    22. Mouter, Niek & Annema, Jan Anne & Wee, Bert van, 2013. "Attitudes towards the role of Cost–Benefit Analysis in the decision-making process for spatial-infrastructure projects: A Dutch case study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 58(C), pages 1-14.
    23. Mouter, Niek, 2017. "Dutch politicians’ attitudes towards Cost-Benefit Analysis," Transport Policy, Elsevier, vol. 54(C), pages 1-10.
    24. Salvador Bertomeu & Antonio Estache, 2016. "Unbundling Political and Economic Rationality: a Non-Parametric Approach Tested on Spain," Working Papers ECARES ECARES 2016-17, ULB -- Universite Libre de Bruxelles.
    25. Eliasson, Jonas, 2023. "Tillbaka till framtiden: en nygammal planprocess [Back to the future: a renewed infrastructure planning process]," MPRA Paper 118658, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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