Assessment of large transport infrastructure projects: The CBA-DK model
This paper presents a newly developed decision support model to assess transport infrastructure projects: CBA-DK. The model combines use of conventional cost-benefit analysis to produce aggregated single point estimates, with quantitative risk analysis using Monte Carlo simulation to produce interval results. The embedded uncertainties within traditional CBA such as ex-ante based investment costs and travel time savings are of particular concern. The paper investigates these two impacts in terms of the Optimism Bias principle which is used to take account of the underestimation of construction costs and the overestimation of travel time savings. The CBA-DK methodological approach has been used to apply suitable probability distribution functions on the uncertain parameters, thus resulting in feasibility risk assessment moving from point to interval results. The proposed assessment model makes use of both deterministic and stochastic based information. Decision support as illustrated in this paper aims to provide assistance in the development and ultimately the choice of action, while accounting for the uncertainties surrounding transport appraisal schemes. The modelling framework is illustrated by the use of a case study appraising airport and runway alternatives in the capital of Greenland - Nuuk. The case study has been conducted in cooperation with the Home Rule Authorities of Greenland.
Volume (Year): 43 (2009)
Issue (Month): 9-10 (November)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
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.:
- Amos Tversky & Daniel Kahneman, 1979.
"Prospect Theory: An Analysis of Decision under Risk,"
Levine's Working Paper Archive
7656, David K. Levine.
- Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-91, March.
- Bent Flyvbjerg, 2013.
"Measuring Inaccuracy in Travel Demand Forecasting: Methodological Considerations Regarding Ramp Up and Sampling,"
- Flyvbjerg, Bent, 2005. "Measuring inaccuracy in travel demand forecasting: methodological considerations regarding ramp up and sampling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(6), pages 522-530, July.
- Fosgerau, Mogens, 2007.
"Using nonparametrics to specify a model to measure the value of travel time,"
Transportation Research Part A: Policy and Practice,
Elsevier, vol. 41(9), pages 842-856, November.
- Fosgerau, Mogens, 2007. "Using nonparametrics to specify a model to measure the value of travel time," MPRA Paper 12009, University Library of Munich, Germany.
- Wardman, Mark, 2004. "Public transport values of time," Transport Policy, Elsevier, vol. 11(4), pages 363-377, October.
- Bent Flyvbjerg & Mette K. Skamris holm & S�ren L. Buhl, 2003. "How common and how large are cost overruns in transport infrastructure projects?," Transport Reviews, Taylor & Francis Journals, vol. 23(1), pages 71-88, January.
- Mackie, Peter & Preston, John, 1998. "Twenty-one sources of error and bias in transport project appraisal," Transport Policy, Elsevier, vol. 5(1), pages 1-7, January.
When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:43:y:2009:i:9-10:p:800-813. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.