|Authors:||Odd I Larsen, Jens Rekdal|
Cost-benefit analysis is the standard method for economic evaluation of investment projects in the transport sector. In short the method implies that all relevant effects of a project shall be quantified and assessed in common unit of measurement, which normally is money. If calculated benefits exceed costs the project can be considered as profitable from a social point of view. This document demonstrates how a transport model for an urban area can be used to estimate some of the main elements that should be included in a cost-benefit analysis of different policy options with respect to the road network design, public transport supply and other measures. The methodology is presented and applied in an example. This is done with a set of «macros» written for the EMME/2-system. The procedure takes demand matrices and network representation as given and can thus be applied to the results produced by any suitable model. Unit prices for various cost and benefit components are suggested and applied.