Issues of Price Definition in CBA: Imperfect Competition and Relative Prices Divergences

Emile Quinet
Additional contact information
Emile Quinet: PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

Post-Print from HAL

Abstract: This text aims at coping with some issues of price definition in the current practice of cost benefit analysis (CBA) and at showing the importance of right choices in this matter. Taking as an example the case of transport infrastructure projects, it addresses two subjects of utmost relevance in the case of transition countries marked by a growing extent of liberalization and conflicts between environmental issues and growth requirements. First, it assesses the consequences of forgetting the strategic interactions between operators involved in the new infrastructure and their impacts on the prices of transport services; it is shown that the consequences on CBA results are rather limited but consequences on traffic volumes are not negligible and are one of the sources of the current traffic overestimations in transport project. Second, it explores the consequences of changes in relative prices, with an application to long run effects implied by the global warming; it appears that properly taking into account these relative changes may lead to conclusions very different from the usual results of current CBA practice where they are generally ignored.

Keywords: Investment choice; Global warming; Relative prices Discount rate; Far future; Market power; Traffic modelling (search for similar items in EconPapers)
Date: 2010-09
References: Add references at CitEc
Citations:

Published in Transition Studies Review, 2010, 17 (3), pp.568-586. ⟨10.1007/s11300-010-0164-0⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00754430

DOI: 10.1007/s11300-010-0164-0

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().