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Transport cost benefit analysis in France: Recent changes, progress and shortcomings

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  • Emile QUINET

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    Abstract

    This chapter deals with the situation of Cost Benefit Analysis applied to transport projects in France. The principles of the directives now in force are analysed. They are based on the Dupuit surplus, including user’s surplus, external effects and producer’s surplus. The unitary values of non market goods are presented, as well as the procedures to use them and to reckon the various indicators assessing both the economic and the financial profitabilities. The most recent recommendations deal with the discount rate, which is lowered from 8% to 4%, but does not include risk, while the previous value included the risk of the projects; they also deal with the budget constraints, a subject for which some new results are developed. Finally, an assessment of the recommendations is made, listing the improvements and short-comings, from the points of view of both the economic analysis and the institutional requirements, and suggesting possible solutions

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    Bibliographic Info

    Paper provided by Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano in its series Departmental Working Papers with number 2006-22.

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    Date of creation: 13 Oct 2006
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    Handle: RePEc:mil:wpdepa:2006-22

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    Keywords: Transport; Cost-benefit Analysis; France;

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    1. Gollier, Christian, 2002. "Time Horizon and the Discount Rate," Journal of Economic Theory, Elsevier, vol. 107(2), pages 463-473, December.
    2. Ivaldi, Marc & Vibes, Catherine, 2005. "Intermodal and Intramodal Competition in Passenger Rail Transport," CEPR Discussion Papers 5004, C.E.P.R. Discussion Papers.
    3. Gollier, Christian, 2002. "Discounting an uncertain future," Journal of Public Economics, Elsevier, vol. 85(2), pages 149-166, August.
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