Perspective on Cost-Benefit Analysis for Intelligent Transport System Projects

Economic evaluation using Cost-Benefit Analysis (CBA) calculates the present values of costs and benefits, helps make an economic decision on a project, and prioritizes the implementation of multiple projects. Although the CBA has been widely used in many public and private investment projects, information of its application on Intelligent Transport Systems (ITS) projects is scarce. This paper discusses the extent to which the CBA’s application for ITS projects and addresses crucial issues considered to conduct the CBA approach. The paper discusses direct and indirect impacts from ITS deployment (e.g., user and non-user benefits, regional development impacts, social effects, and other externalities). Specifically, the economic and social impacts of ITS projects by application areas are highlighted. In addition, an expended CBA approach including these direct and indirect benefits and cost components is discussed to assess the total effects from the ITS projects.