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Cost-benefit analysis has become a widely used and well developed tool for evaluation of suggested transport projects. This paper presents our view of the role and position of CBA in a transport planning process, partly based on a brief survey of a number of countries where CBA plays a formalised role in decision making. The survey shows that methodologies, valuations and areas of application are broadly similar across countries. All countries place the CBA results in a comprehensive assessment framework that also includes various types of non-monetised benefits. An important advantage with using CBA is that it is a way to overcome cognitive, structural and process-related limitations and biases in decision making. Some of the main challenges to CBA and to quantitative assessment in general lie in the institutional and political context. There is often a risk that CBA enters the planning process too late to play any meaningful role. This risk seems to increase when planning processes are centred around a perceived problem . If the problem is perceived as important enough, even inefficient solutions may be viewed as better than nothing, despite that the definition of what constitutes a problem is often arbitrary

Substantial investment has been made at national and European level in transport infrastructure over the past 50 years and is likely to continue in the future. The need to appraise transport projects in economic and social terms has developed alongside this in both scope and complexity. The state-of-the-art in the economic appraisal of transport projects is reviewed, progress is assessed and future challenges are identi® ed. The review addresses the general framework, treatment of major impacts, presentation of outputs and issues such as uncertainty. It draws on national practice in Western European countries, which varies substantially re¯ecting a range of cultural and economic diOE erences. Some points of commonality exist and the principle of monetizing direct transport impacts is generally accepted. Progress has been made towards the measurement of environmental impacts, but the assessment of the wider impacts remains underdeveloped. Increased sophistication and complexity has brought increasing data and presentation requirements, where computerized decision support methods have potential. Many challenges exist for the future of appraisal and the review is concluded with a discussion of some key issues. At the heart of these is the continuing debate over the relative roles of national and European government in decision-making and resource allocation.

It is claimed that transport infrastructure projects have network effects which are not taken into account in the appraisal of these projects. This paper reviews the concept of network effects, relates this to transport appraisal practice, and links to the concept of 'total economic impact'. The limitations of transport modelling and appraisal in estimating total economic impact are reviewed. Good quality appraisals should be capable of picking up relevant network effects in the transport market, but the state of the art remains limited on the linkages between transport and the wider economy.

This is a repository copy of Econometric analysis of the link between public transport accessibility and employment.

This paper provides an overview of the study 'Provision of market research for value of time savings and reliability' undertaken by the Arup/ITS Leeds/Accent consortium for the UK Department for Transport (DfT). The paper summarises recommendations for revised national average values of in-vehicle travel time savings, reliability and time-related quality (e.g. crowding and congestion), which were developed using willingness-to-pay (WTP) methods, for a range of modes, and covering both business and non-work travel purposes. The paper examines variation in these values by characteristics of the traveller and trip, and offers insights into the uncertainties around the values, especially through the calculation of confidence intervals. With regards to non-work, our recommendations entail an increase of around 50% in values for commute, but a reduction of around 25% for other non-work-relative to previous DfT 'WebTAG' guidance. With regards to business, our recommendations are based on WTP, and thus represent a methodological shift away from the cost saving approach (CSA) traditionally used in WebTAG. These WTP-based business values show marked variation by distance; for trips of less than 20 miles, values are around 75% lower than previous WebTAG values; for trips of around 100 miles, WTP-based values are comparable to previous WebTAG; and for longer trips still, WTP-based values exceed those previously in WebTAG.

This paper identifies the principal areas of disagreement in the bus policy debate of 1984-85, and reviews the outcome of bus deregulation against that background. It is concluded that the commercial bus market is imperfectly contestable. Entry may occur where the incumbent is inefficient, where the incumbent is efficient but weak enough to be supplanted, or simply through over-optimism. Incumbents deter entry by tightly controlling costs and by not leaving profitable gaps in service. Merger and acquisition is normally a better strategy than active competition; the tendency to merger has proved stronger than was recognized in the debate. In considering market performance, it is necessary in principle to distinguish between the effects of privatization, subsidy withdrawal, tendering and the abolition of the route licensing system, while recognizing that they interrelate in a complex way. Operating costs have fallen much more sharply than the opponents of deregulation expected. Service levels have risen, but so have real fares. Patronage has fallen faster since deregulation than its historic trend, leaving cost per passenger journey little changed. However, the tendering regime in London has performed much better than full deregulation, with similar (and continuing) reductions in operating costs, little change in patronage and a significant reduction in cost per passenger. Though it may not achieve all the dynamic benefits of full deregulation, tendering avoids wasting resources in competitive battles, offers the opportunity to balance fares and service policies efficiently, and avoids the loss of consumer confidence associated with instability. Finally, the loss of the ability to use local bus services as an instrument of urban planning policy is now recognized as important; here too a tender or franchise regime has the edge over full deregulation.