Economic evaluation involves the assessment of the net value of projects and policies. In the transport sector we value projects in terms of their net worth, the difference between the value of their benefits and their costs, both measured so far as is possible in terms of monetary units. This statement leads to many questions; evaluation by whom, for whom, from what perspective, at what stage. One of the features of transport decisions is that they typically impact on many parties – transport operators, individual transport users, local residents and businesses, land and property owners, national and local taxpayers. Each of these stakeholders will seek to assess the impact of a project from the perspective of his/her own interest. But the perspective of transport evaluation needs to be a social one, that is, one which takes account of significant impacts of the project or policy whoever is affected. This Note examines the key questions for economic evaluation of transport projects.
World Bank, Washington D.C., USA. Transport Note No. TRN-5, 25 pp.