Risk in Transport Investments

André de Palma (), Nathalie Picard and Laetitia Andrieu
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Laetitia Andrieu: EDF R&D OSIRIS - Optimisation, Simulation, Risque et Statistiques pour les Marchés de l’Energie - EDF R&D - EDF R&D - EDF - EDF

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Abstract: We discuss how the standard Cost-Benefit Analysis should be modified in order to take risk (and uncertainty) into account. We propose different approaches used in finance (Value at Risk, Conditional Value at Risk, Downside Risk Measures, and Efficiency Ratio) as useful tools to model the impact of risk in project evaluation. After introducing the concepts, we show how they could be used in CBA and provide some simple examples to illustrate how such concepts can be applied to evaluate the desirability of a new project infrastructure.

Keywords: Cost-benefit analysis; Risk; Transportation; Large project; Value at Risk; Conditional Value at Risk (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (4)

Published in Networks and Spatial Economics, 2012, 12 (2), pp.187-204. ⟨10.1007/s11067-009-9109-8⟩

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Related works:
Journal Article: Risk in Transport Investments (2012)
Working Paper: Risk in Transport Investments (2012)
Working Paper: Risk in Transport investments (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00719698

DOI: 10.1007/s11067-009-9109-8

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