Transportation cost-benefit analysis

The lecture will explore various aspects of Transport Cost-Benefit Analysis (CBA) in the context of evaluating and justifying transportation investments. It will begin by discussing technical considerations such as accessibility, the logsum, and the use of consumer surplus as a measure. The "rule of the half" will be introduced as a principle to ensure an equitable assessment of costs and benefits. The lecture will also delve into the reliability and robustness of CBA, exporting its overall significance in decision-making. Addressing issues like project cost overruns and demand shortfalls, the presentation will highlight potential challenges in the evaluation process. Finally, the concept of Equity in Value of Travel Time (VTT) in Transport CBA will be analyzed. Ultimately, the lecture will prompt reflection on the broader implications and complexities associated with the application of CBA in transport investment decision processes.

Maria Börjesson  is Professor in economics, with focus on transport at VTI and affiliated professor in economics at Linköping University. She currently is the President of the International Transportation Economics Association (ITEA).  Moreover, she is a member of the scientific council of the National Audit office, chair of the Swedish National Scientific Council on Cost-Benefit Analysis ASEK, member of the board of Nationalekonomiska Föreningen, member of the scientific council of the authority Traffic Analysis. She is on the editorial Board of Transportation Research Part A, and elected Fellow of the Royal Swedish Academy of Engineering Sciences (IVA).