Cost-benefit analysis and EU cohesion policy
AbstractIn the context of scarce EU budgetary resources and strained public finances, cost-benefit analysis (CBA) plays a crucial role in assisting policymakers’ public investment decisions. The purpose of this paper is to draw lessons from the CBA experience under the Structural and Cohesion Funds to date. The paper reviews the main developments over the last decade, highlighting the role played by the Commission in helping foster a sound project appraisal culture in the member states. It also points out the relevance of CBA in assisting the allocation of EU funds across projects. Particularly, it is shown how the new method that will be used to determine the level of Community assistance should prevent the crowding out of other sources of finance by increasing the leverage effect and creating incentives for attracting private capital. Finally, the paper will discuss the main policy implications in terms of affordability and sustainability issues.
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Bibliographic InfoPaper provided by Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano in its series Departmental Working Papers with number 2006-34.
Date of creation: 02 Nov 2006
Date of revision:
Cost-Benefit Analysis; Project Evaluation; Structural Funds; European Regional Policy;
Find related papers by JEL classification:
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-11-12 (All new papers)
- NEP-EEC-2006-11-12 (European Economics)
- NEP-GEO-2006-11-12 (Economic Geography)
- NEP-PPM-2006-11-12 (Project, Program & Portfolio Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Massimo FLORIO & Silvia VIGNETTI, 2003.
"Cost-benefit analysis of infrastructure projects in an enlarged European Union: an incentive-oriented approach,"
Departmental Working Papers
2003-13, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
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- Andrea MAIRATE, 2006. "Does cohesion help economic growth?," Departmental Working Papers 2006-06, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- Pearce, David, 1998. "Cost-Benefit Analysis and Environmental Policy," Oxford Review of Economic Policy, Oxford University Press, vol. 14(4), pages 84-100, Winter.
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