A public decision by several countries on whether to cofinance an international infrastructure project is the subject of a cost–benefit analysis (CBA). The CBA elements are broken out and analyzed for each country. The issue of freight user benefits is discussed, and results are derived from a partial equilibrium model and point toward practical applicability. A recent analysis of the Fehmarn Belt Bridge, which will connect Denmark and Germany in a link in the Trans-European Network for Transport, is used for illustrative purposes.
Get full access to this article
View all access options for this article.
References
1.
RouwendalJ.Indirect Welfare Effects of Price Changes and Cost–Benefit Analysis.Discussion Paper TI 2002-011/3. Tinbergen Institute, Rotterdam, Netherlands,2002.
2.
CarltonD. W.Valuing Market Benefits and Costs in Related Output and Input Markets.American Economic Review, Vol. 69, No. 4, 1979, pp. 688–696.
3.
Jara-DiazS. R.Relation Between Users’ Benefits and the Economic Effects of Transportation Activities.Journal of Regional Science, Vol. 26, No. 2, 1986.
4.
Trafikministeriet.Economic Assessment of a Fixed Link Across the Fehmarn Belt.2004. www.trafikministeriet.dk.
5.
Trafikministeriet Samfundsøkonomisk vurdering af en fast forbindelse over Femern Bælt.COWI for Danish Ministry of Transport.2004. www.trafikministeriet.dk.
6.
European Commission Decision No. 1692/96/EC.European Commission, Brussels, Belgium, 1996.
7.
Transport and the Economy.Standing Advisory Committee on Trunk Road Assessment (SACTRA), Department of the Environment, Transport, and the Regions, Stationery Office, London, 1999. www.roads.dft.gov.uk/roadnetwork/sactra/report99/index.htm.
8.
DamP. U.ADAM: En model af dansk økonomi.Danmarks Statistik, 1995.
9.
KnudsenM., PedersenL. H., PetersenT. W., StephensenP., and TrierP.. Danish Rational Economic Agents Model—DREAM, Version 1.2.Statistics Denmark, 1998.
10.
JohanssonP.Cost-Benefit Analysis of Environmental Change.Cambridge University Press, Cambridge, England, 1993.
11.
Trafikministeriet.Brug af samfundsøkonomisk metode i udvalgte lande.2002. www.trafikministeriet.dk.
12.
Fehmarn Belt Traffic Consortium.Fehmarn Belt—Forecast 2002.Trafikministeriet, Copenhagen, Denmark, 2003.
13.
Fehmarn Belt Traffic Consortium.Fehmarn Belt Traffic Demand Study.Trafikministeriet, Copenhagen, Denmark, 1999. www.trafikministeriet.dk.
14.
Trafikministeriet.Manual for samfundsøkonomisk analyse—anvendt metode og praksis på transportområdet.2003. www.trafikministeriet.dk.
15.
FosgerauM., and Lund JensenT.. Economic Appraisal Methodology—Controversial Issues and Danish Choices.Proc., European Transport Conference.Association for European Transport, London, 2003.
16.
FosgerauM., and PilegaardN.. Samfundsøkonomisk vurdering af en fast forbindelse over Femern Bælt.Danish Transport Research Institute. 2004. www.dtf.dk.
17.
KidokoroY.Cost-Benefit Analysis for Transport Networks: Theory and Application.Journal of Transport Economics and Policy, Vol. 38, No. 2, 2004, pp. 275–307.
