Is CBA Ranking of Transport Investments Robust?

Cost-benefit analyses (CBA) are often questioned on the grounds that results depend crucially on uncertain assumptions about the future, and on ethically or methodologically contestable trade-offs between different types of benefits. This paper explores the robustness of CBA rankings of transport in...

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Bibliographic Details
Published in:Journal of transport economics and policy 2014, Vol.48 (2), p.189-204
Main Authors: Börjesson, Maria, Eliasson, Jonas, Lundberg, Mattias
Format: Article
Language:English
Subjects:
02 Road: Economics
Analytical forecasting
Automobiles
Commuting
Cost benefit analysis
Estimation
Financial investments
Hybrid cars
Investment
Investment plans
Investment policy
Journey time
Oil prices
ranking
Roads
Transport infrastructure
Transport mode
transportation economics
Travel time
valuation
Vehicle ownership
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Summary:Cost-benefit analyses (CBA) are often questioned on the grounds that results depend crucially on uncertain assumptions about the future, and on ethically or methodologically contestable trade-offs between different types of benefits. 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, car characteristics and driving costs. The impact of differentiating the value of time with respect to travel mode and purpose is also studied. The study concludes that CBA rankings are robust to all of the studied variations.
ISSN:0022-5258
1754-5951