Cost-benefit analysis of infrastructure projects in an enlarged European Union: an incentive-oriented approach

Massimo Florio and Silvia Vignetti

Departmental Working Papers from Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano

Abstract: The purpose of the paper is to analyse some results of cost-benefit analysis in a sample of ISPA (Structural Instrument for pre-accession countries) projects. The focus is particularly on the variability of financial and economic rates of return and how to integrate this information in the EU co-financing mechanism. We investigate, through the analysis of variance of co-financing rate, to which extent variability of rates is due to structural characteristics (sectors, countries) or to the existence of a residual variance due both to specificity of the project and discretional element of the appraisal method, which may constitute an information noise. We find that the variance of co-financing rate across countries is poorly explained by different composition of sectors of investment. This suggests the need to reinforce a more consistent approach to evaluation and co-financing. We suggest some possible solutions.

Keywords: Cost-benefit analysis; Project Evaluation; Structural Funds; European Regional Policy (search for similar items in EconPapers)
JEL-codes: D61 H43 R58 (search for similar items in EconPapers)
Date: 2003-01-01
New Economics Papers: this item is included in nep-eec
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Citations: View citations in EconPapers (6)

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Related works:
Working Paper: Cost-benefit analysis of Infrastructure Projects in an Enlarged European Union: an Incentive-Oriented Approach (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:mil:wpdepa:2003-13

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