The Distribution of Benefits in Road-Investment Appraisal

J S Dodgson
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J S Dodgson: Department of Economics, University of Liverpool, PO Box 147, Liverpool, L69 3BX, England

Environment and Planning A, 1978, vol. 10, issue 1, 3-15

Abstract: This paper discusses the problems involved in allowing for distributional considerations in road-investment appraisal. The first part demonstrates how existing traffic models can be modified in order to evaluate the distributional impact of benefits to leisure-time travellers in different income groups and different areas. In addition, it outlines the difficulties involved in estimating the distributional impact of benefits to travellers in working time, of freight-traffic benefits, and of accident benefits. The second part of the paper discusses the alternative approach of allowing for distributional considerations at the sector level, rather than at the individual project level. A model for determining a cut-off benefit–cost ratio for projects with particular distributional consequences is outlined, and is illustrated by reference to interurban road-investment planning in the United Kingdom.

Date: 1978
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envira:v:10:y:1978:i:1:p:3-15

DOI: 10.1068/a100003

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