The impact of travel costs and economic growth on cost-benefit analysis rankings

Peter Almström
Svante Berglund
Daniel Jonsson

The use of Cost-benefit analysis (CBA) as a tool for selecting transport investments is often questioned. It is not unusual that politicians or others in the public debate argue that the outcome of a CBA completely rely on assumptions concerning a particular input factor, such as valuation of CO2 emissions or future fuel price. This paper explores whether the relative ranking of CBA outcomes are robust with respect to some key inputs in transport demand analysis driving cost, public transport fare and economic growth. We study six different infrastructure objects (three road and three rail objects) and four alternative assumptions on input factors compared to a reference scenario.

The findings suggest that single input factors in a CBA, individually have a small impact on the ranking of the studied investments. In our model calculations we observe no change in rank between a road and a rail object.

MEET US


25-26
Apr

Cost Benefit Analysis (CBA) workshop in Stockholm

An open seminar and workshop in Stockholm will be held on 25-26 April 2018. The workshop deals with the use of CBA as a basis for decision-making in the public sector. The workshop is organized by, among others, Professor Jan-Eric Nilsson, VTI.
13-14
Jun

The 6st Humanist Conference

The 6th HUMANIST Conference will take place 13-14 June 2018 in the Hague, The Netherlands. The scope of the conference covers a wide range of topics on Human Factors in Transport. Tania Willstrand and Alexander Eriksson will present their research results.

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