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Passenger transport planning. A Benefit-Cost Analysis of the High Speed Railway: The case of Spain

Pedro Casares and Pablo Coto-Millán ()
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Pedro Casares: Universidad Cantabria. España.

Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016), 2011, vol. 2, -

Abstract: In the current economical and financial crisis, the economic evaluation of transport infrastructure investment projects is of most importance. Given the need of most governments to reduce spending and control the deficit, having tools that facilitate decision-making seems to be a key objective. This paper examines several high speed lines in Spain, by using the benefit-cost analysis (BCA), in order to obtain more information and determine the social costs and benefits linked to each project. Such analysis allows determining whether costs are higher than benefits, so the net social benefit is positive. Similarly, an Internal Rate of Return (IRR) per project is determined, in order to classify investments with positive BCA.

Date: 2011
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