Is CBA ranking of transport investments robust?

Maria Börjesson (), Jonas Eliasson () and Mattias Lundberg
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Maria Börjesson: KTH, Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden

No 2012:30, Working papers in Transport Economics from CTS - Centre for Transport Studies Stockholm (KTH and VTI)

Abstract: Cost-benefit analysis (CBA) is often used when many transport investments need to be ranked against each other, for example in national investment planning. However, results are often questioned on claims that the ranking depends crucially on uncertain assumptions about the future, and on methodologically or ethically contestable trade-offs of different types of benefits relative to each other. This paper explores the robustness of CBA rankings of transport investments with respect to two types of uncertainties: relative benefit valuations and scenario assumptions related to car ownership, characteristics and costs. The study is based on CBAs of 479 suggested road and rail investments in Sweden that have been shortlisted for possible inclusion in the national transport investment plan. The CBA ranking turns out to be robust to variations in the studied scenario assumptions. The CBA ranking also turns out to be robust to changes in the relative valuations of different types of benefits – person travel time savings, traffic safety, emissions and freight benefits. We also compare two sets of travel time valuations against each other, one of which differentiated with respect to mode and travel purpose and one which is not, again concluding that the investment ranking is robust.

Keywords: Cost benefit analysis; Appraisal; Robustness; Decision support. (search for similar items in EconPapers)
JEL-codes: R41 R48 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2012-12-21
New Economics Papers: this item is included in nep-tre and nep-ure
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Citations: View citations in EconPapers (1)

Published as Börjesson, Maria, Jonas Eliasson and Mattias Lundberg, 'Is CBA ranking of transport investments robust?' in Journal of Transport Economics and Policy, 2014, pages 189-204.

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Related works:
Journal Article: Is CBA Ranking of Transport Investments Robust? (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:ctswps:2012_030

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