Methods of cost-benefit analyses for transport system are discussed. Several failures and shortcomings in recent studies on this subject are pointed out. The decision on the choice of differential price change trend factors (inflationary rate), on the feasible financing interest rate, and on the opportunity rate of interest to be used for the discounting should be made in close relation to onse another. Differential effects on different parts of the community should be assessed. It is imperative that all meaningful alternatives to a transport system must go through the cost-benefit analysis. Noneconomic factors should be assignment a value as far as possible in the judgement of the author. Potential uncertainties should be analyzed as forming an integral constituent. It is shown that other methods can lead to erroneous results.
Abstract