Improving Assessment of Transport Policies by Dynamic Cost-Benefit Analysis

2003 ◽  
Vol 1839 (1) ◽  
pp. 107-114 ◽  
Author(s):  
Wolfgang Schade ◽  
Werner Rothengatter
Keyword(s):  
Network Effects ◽  
Cost Benefit Analysis ◽  
Dynamic Assessment ◽  
Cost Benefit ◽  
Transport Infrastructure ◽  
Transport Sector ◽  
The European Union ◽  
Benefit Analysis ◽  
Dynamic Approach ◽  
Economic Sectors

In the history of cost-benefit analysis (CBA), macroeconomic and micro-economic foundations have been developed. The latter has dominated in transport CBA during the last decades. The most widely used CBA approach can be characterized as comparative static and based on separate partial modeling. However, when it comes to significant indirect effects in the economic, social, and environmental systems connected with the transport system, alternative approaches to the microeconomic approach become inevitable. A system dynamics platform was developed that allows for a dynamic CBA integrating the most important indirect effect of transport policies. The approach was tested with large infrastructure programs and transport policy packages. Results of the dynamic approach reveal that the choice of the most favorable policy can change over time and depend on the time horizon defined for the analysis. In particular the dynamic approach allows for a clear allocation of costs and benefits to periods of time, which might be valuable information for policy acceptance and implementation. This research is integrated within a stream of European Commission projects on integrated and dynamic assessment, starting with the Assessment of Transport Strategies project (ASTRA) and extended by the projects Transport Infrastructure and Policy: A Macroeconomic Analysis for the European Union (TIPMAC) and Integrated Appraisal of Spatial Economic and Network Effects of Transport Investments and Policies (IASON). IASON focuses on analysis of indirect, second-round, or induced benefits and costs that occur through feedback effects between the transport sector and other economic sectors.

scholarly journals Dr Torben Holvad

2021 ◽  
Vol 12 (1) ◽  
pp. 11-13
Author(s):  
Aránzazu Berbey Álvarez
Keyword(s):  
European Union ◽  
Quantitative Methods ◽  
Cost Benefit Analysis ◽  
Multicriteria Analysis ◽  
Cost Benefit ◽  
Data Envelopment ◽  
The European Union ◽  
Benefit Analysis ◽  
Transport Economics ◽  
European University

Torben Holvad is Analysis Team Leader at the European Union Agency for Railways (France). He obtained Economics degrees from Copenhagen University (MSc) and the European University Institute in Florence (PhD). He has more than 30 years of experience in applied economic analysis. His skills and expertise correspond to backgrounds like: Quantitative methods, Data Envelopment Analysis, Impact Assessment, Cost Benefit Analysis, Transport Economics, Multicriteria analysis, Economics of regulation, Data analysis, Health economics.

A Concise Overview of Penology and Penal Practice in Slovenia

2011 ◽  
Vol 91 (4) ◽  
pp. 398-424 ◽  
Author(s):  
Gorazd Meško ◽  
Chuck Fields ◽  
Tomaž Smole
Keyword(s):  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Criminal Court ◽  
The European Union ◽  
Benefit Analysis ◽  
Inmate Population ◽  
Prison Overcrowding ◽  
History Of ◽  
Probation Service ◽  
Near Future

Although Slovenia has one of the lowest incarceration rates in the world, there are not enough facilities to house the current inmate population, and prison overcrowding is becoming a serious problem in the country. This article addresses this issue, beginning with an in-depth history of penology and penal practices in Slovenia and concluding with suggestions to deal with this potentially disastrous situation. If the imprisonment rate in Slovenia does not decrease in the near future, or if Slovenia cannot create more capacity, prison overcrowding will grow beyond acceptable standards. The present situation in Slovene prisons calls for a multidisciplinary research and cost/benefit analysis. The Slovenian prison administration is challenged by its budget and staff resources. However, it is argued that the problem goes beyond this capacity and requires a serious reconsideration of penal policy, criminal court practice, and parole committee practices as well. It is also necessary to emphasize that Slovenia is the only country in the European Union without a probation service system.

scholarly journals Mortality-risk valuation, age and cause of death: out-of-hospital cardiac arrest

2017 ◽  
Vol 5 (2) ◽  
pp. 28-40
Author(s):  
Björn Sund
Keyword(s):  
Cardiac Arrest ◽  
Willingness To Pay ◽  
Cause Of Death ◽  
Road Traffic ◽  
Cost Benefit Analysis ◽  
Stated Preference ◽  
Cost Benefit ◽  
Transport Sector ◽  
Benefit Analysis ◽  
Hospital Cardiac Arrest

Economic evaluation of policies regarding out-of-hospital cardiac arrest (OHCA) is important. The value of a statistical life (VSL) for OHCA victims is the most important component in a cost-benefit analysis of interventions that have the possibility to reduce mortality from this cause. This value is not known. We use responses to a national Swedish mail survey, based on the stated-preference technique to directly elicit individuals’ hypothetical willingness to pay for a reduced risk of dying from OHCA. A lower-bound estimate of VSL for OHCA would be in range of SEK 30 to 50 million. The value is found to be higher than for comparable VSL estimates from the transport sector, even though individuals who suffer OHCAs are generally older and less healthy than people who die in road traffic accidents. The results indicate that it is not an overestimation to use the ‘baseline’ VSL value from the transport sector (SEK 24 million) in cost-benefit analysis of OHCA policy decisions and that the cause of death is important when examining willingness to pay for death risk reductions. We do not support a general declining VSL due to the age of the victims, i.e. a ‘senior death discount’, for this cause of death.Published: Online January 2017. In print December 2017.

The Cost-Benefit Analysis for the Evaluation of Public Infrastructure Projects - The Case of the Subway of Potenza

2014 ◽  
Vol 1073-1076 ◽  
pp. 1362-1367
Author(s):  
Benedetto Manganelli
Keyword(s):  
Cost Benefit Analysis ◽  
Cost Savings ◽  
Cost Benefit ◽  
Economic Feasibility ◽  
Transport Infrastructure ◽  
Benefit Analysis ◽  
Public Infrastructure ◽  
New Public ◽  
The Cost ◽  
The City

In the present work the economic feasibility of a project of public infrastructure, the expansion of the subway of the city Potenza, is estimated. The assessment has been developed through the application of the Cost-Benefit Analysis. As is known the advantage of this technique is the ability to express in monetary terms the externalities (positive and negative) generated by the project. In this case, the external cost savings related to the improvement of the mobility in the city have been internalized. The research has shown that the valuation of the externalities can be an effective way to manage the planning of new public transport infrastructure.

scholarly journals Cost-Benefit Analysis and European Union Cohesion Policy: Economic Versus Financial Returns in Investment Project Appraisal

2018 ◽  
Vol 9 (1) ◽  
pp. 147-180 ◽  
Author(s):  
Massimo Florio ◽  
Valentina Morretta ◽  
Witold Willak
Keyword(s):  
European Union ◽  
European Commission ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Economic Benefits ◽  
Rate Of Return ◽  
Policy Framework ◽  
The European Union ◽  
Benefit Analysis ◽  
Cohesion Policy

This paper investigates the role of cost-benefit analysis (CBA) in the context of the European Union (EU) Cohesion Policy. After presenting the EU policy framework and the CBA guidelines adopted by the European Commission, we perform an empirical analysis drawing from a dataset of around 1000 major project applications, submitted during the period 2007–2013 by 22 European countries, and representing almost €180 billion of investment. A distinctive feature of the current CBA approach adopted by the European Commission is that applications for funding must provide a forecast of both the project’s financial rate of return (FRR) and economic rate of return (ERR). While the former represents the financial profitability of the project from a private investors’ perspective, the latter reveals its socio-economic benefits for the whole society. The difference between ERR and FRR mainly depends on the use of shadow prices, the inclusion of externalities and other nonmarket effects in the estimation of ERR, whilst the FRR is based on market prices. We find that, on average, the FRR is slightly negative ($-2.9$%) and the ERR is positive (16.2%). ERR and FRR are positively correlated on average with differences across sectors. We discuss these findings and suggest further research needs.

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