COST-BENEFIT ANALYSIS IN TRANSPORT. IN: HANDBOOK OF TRANSPORT SYSTEMS AND TRAFFIC CONTROL

An up-to-date view of cost-benefit analysis (CBA) for transportation is presented, referring to questions both of principle and practice. CBA is a specific branch of appraisal. Its key characteristics are that the analysis is conducted from an overall social viewpoint rather than that of any particular agent, and that it uses monetary values as the weights applying to the various impacts that are relevant to the decision. This paper discusses the need for project appraisal, provides a detailed look at the key features of CBA, and addresses some recent challenges, including extending CBA to environmental impacts of transport and the appropriate treatment within appraisal of the wider economic impacts of transport projects.