Cost-benefit analysis and EU cohesion policy
In 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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- Massimo Florio, 2006. "Cost-benefit analysis and the European union cohesion fund: On the social cost of capital and labour," Regional Studies, Taylor & Francis Journals, vol. 40(2), pages 211-224.
- Etienne B. Yehoue & Mona Hammami & Jean-FranÃ§ois Ruhashyankiko, 2006. "Determinants of Public-Private Partnerships in Infrastructure," IMF Working Papers 06/99, International Monetary Fund.
- 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.
- Grout, Paul A., 2005. "Value-for-money measurement in public-private partnerships," EIB Papers 7/2005, European Investment Bank, Economics Department.
- 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.
- Massimo Florio & Silvia Vignetti, 2003. "Cost-benefit analysis of Infrastructure Projects in an Enlarged European Union: an Incentive-Oriented Approach," Development Working Papers 181, Centro Studi Luca d\'Agliano, University of 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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