IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Cost-Benefit Analysis for Investment Decisions: Chapter 16 (Cost-Benefit Analysis of Transportation Projects)

Listed author(s):
  • Glenn Jenkins

    (Queen's University, Canada and Eastern Mediterranean University, Cyprus)

  • Chun-Yan Kuo

    (Queen's University, Canada)

  • Arnold C. Harberger

    (University of California, Los Angeles, USA)

This chapter will focus on the problems of evaluating transportation projects in the context of the less-developed countries. Emphasis will be placed on highway projects, because these account for the bulk of transport investments in the developing parts of the world. If a project passes a straight financial test, based on the present value of its cash inflows and outflows, projects would only come if this financial NPV were outweighed by the present value of the project’s various externalities. Road projects, however, carry a special interest as compared to other types of transport investments, because of the fact that they only rarely can be justified on strictly commercial considerations. Rail and air fares and port and landing charges constitute direct devices, by which the costs of the relevant facilities can, over time, are recouped from the beneficiaries. To a first approximation, therefore, the worthwhileness of such projects can be judged by the strictly commercial criterion of prospective profitability. Except for toll roads, road investments never present the luxury of such a positive financial NPV. This chapter presents a framework for the appraisal of both road improvements as well as the evaluation of new roads and new modes of travel.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by JDI Executive Programs in its series Development Discussion Papers with number 2011-16.

in new window

Length: 34 pages
Date of creation: Aug 2011
Handle: RePEc:qed:dpaper:209
Contact details of provider: Postal:
Kingston, Ontario, K7L 3N6

Phone: (613) 533-2250
Fax: (613) 533-6668
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:qed:dpaper:209. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bahman Kashi)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.