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Cost-benefit analysis of transport projects: theoretical framework and practical rules

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Listed:
  • Ginés de Rus
  • M. Pilar Socorro
  • Jorge Valido
  • Javier Campos

Abstract

This paper describes this method for the assessment of the economic effects of any project and then addresses an alternative approach based on the aggregation of changes in surpluses.

Suggested Citation

  • Ginés de Rus & M. Pilar Socorro & Jorge Valido & Javier Campos, 2022. "Cost-benefit analysis of transport projects: theoretical framework and practical rules," Working Papers 2022-05, FEDEA.
    • Handle: RePEc:fda:fdaddt:2022-05
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    References listed on IDEAS

    as
    1. Mackie, Peter & Worsley, Tom & Eliasson, Jonas, 2014. "Transport appraisal revisited," Research in Transportation Economics, Elsevier, vol. 47(C), pages 3-18.
    2. Schmid, Basil & Molloy, Joseph & Peer, Stefanie & Jokubauskaite, Simona & Aschauer, Florian & Hössinger, Reinhard & Gerike, Regine & Jara-Diaz, Sergio R. & Axhausen, Kay W., 2021. "The value of travel time savings and the value of leisure in Zurich: Estimation, decomposition and policy implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 150(C), pages 186-215.
    3. Laird, James J. & Venables, Anthony J., 2017. "Transport investment and economic performance: A framework for project appraisal," Transport Policy, Elsevier, vol. 56(C), pages 1-11.
    4. Peter Mackie & Daniel Graham & James Laird, 2011. "The Direct and Wider Impacts of Transport Projects: A Review," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 21, Edward Elgar Publishing.
    5. Willig, Robert D, 1976. "Consumer's Surplus without Apology," American Economic Review, American Economic Association, vol. 66(4), pages 589-597, September.
    6. Paul Collier & Anthony J Venables, 2018. "Who gets the urban surplus?," Journal of Economic Geography, Oxford University Press, vol. 18(3), pages 523-538.
    7. Graham, Daniel J. & Gibbons, Stephen, 2019. "Quantifying Wider Economic Impacts of agglomeration for transport appraisal: Existing evidence and future directions," Economics of Transportation, Elsevier, vol. 19(C), pages 1-1.
    8. Anthony J. Venables, 2007. "Evaluating Urban Transport Improvements: Cost-Benefit Analysis in the Presence of Agglomeration and Income Taxation," Journal of Transport Economics and Policy, University of Bath, vol. 41(2), pages 173-188, May.
    9. Johansson, Per-Olov & de Rus, Gines, 2018. "Evaluating Large Projects when there are Substitutes: Looking for Possible Shortcuts," CERE Working Papers 2018:7, CERE - the Center for Environmental and Resource Economics.
    10. David A. Hensher, 2011. "Valuation of Travel Time Savings," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 7, Edward Elgar Publishing.
    11. Johansson,Per-Olov, 1993. "Cost-Benefit Analysis of Environmental Change," Cambridge Books, Cambridge University Press, number 9780521447928.
    12. Campos, Javier & de Rus, Ginés, 2009. "Some stylized facts about high-speed rail: A review of HSR experiences around the world," Transport Policy, Elsevier, vol. 16(1), pages 19-28, January.
    13. Campos, Javier & de Rus, Gines & Barron, Iñaki, 2007. "The cost of building and operating a new high speed rail line," MPRA Paper 12396, University Library of Munich, Germany.
    14. Mohring, Herbert, 1993. "Maximizing, measuring, and not double counting transportation-improvement benefits: A primer on closed- and open-economy cost-benefit analysis," Transportation Research Part B: Methodological, Elsevier, vol. 27(6), pages 413-424, December.
    15. Ginés de Rus & Per-Olov Johansson, 2019. "Measuring the economic effects of transport improvements," Working Papers 2019-01, FEDEA.
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    More about this item

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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