Cost benefit analysis

CBA steps

1.Identify all costs and benefits 2.Measure 3.Forecast these over life of project using, achieved by discounting the future benefits to establish the present value 4.Establish the net present value (benefit to cost ratio) interpret this to establish whether the full social benefit outweighs the full social cost

COBA benefits measured

1.Journey time savings 2. Vehicle operating costs 3.Accident cost savings

Cost benefit analysis

A technique used by the public sector, for assessing the viability of a project, taking into account all effects over time

NATA impacts assessed (4)

Accessibility

Econometrics

Application of statistical techniques to economic data

COBA

CBA method used, until recently, to appraise road projects

NATA impacts assessed (3)

Economey

NATA impacts assessed (1)

Environment impact

NATA impacts assessed (5)

Intergration

NATA impacts assessed (2)

Saftey

Take action if

extra benefit > extra cost