|ISBN (digital version):||82-480-0556-9|
Rules regarding the discount rate in Norwegian cost benefit analyses are set by the Ministry of Finance. The discount rate consists of a risk free rate and a risk premium, the level of which depends on the project's systematic risk. The Ministry of Transport and Communications has asked TØI to draw up a report on the application of these rules in the transport sector and to make recommendations. Our recommendations are based on a criterion for investering in uncertain non-tradable assets. We recommend to use a discount rate of 4.5 % per annum for all transport projects except projects concerning seaborne freight and air, where 5 % is the recommended rate.