Allocation of user benefits for international freight transports

Allocation of user benefits for international freight transports: in cost-benefit analysis

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The aim of this project is to analyse when, if and how a transport cost reduction, following an infrastructure investment affecting international freight transports, should be allocated between countries in a cost-benefit analysis (CBA). In order to analyse this question, the project has been split into two stages. This first stage aims at presenting a more general picture of how the user benefits could be allocated according to the scientific literature, how recommendations on this issue are designed in other countries CBA guidelines, and whether this issue is treated in the planning process of transnational infrastructure projects. The available, but scarce, scientific literature indicates that the allocation of user benefits can have substantial effects on the profitability of infrastructure measures. Having studied CBA guidelines and CBAs of transnational infrastructure projects, the conclusion from our study is that to our knowledge, no other country has a well-founded allocation method that could be implemented in Sweden. Finally, the literature does not offer any strong recommendations or straightforward theoretical methods, with the exception of a first suggestion by Fosgerau and Buus Kristensen (2005).

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