Cost/Benefit

Abstract

This paper presents a cost-benefit analysis approach devised to conduct project evaluation in conditions of limited analyst time, research budget and data availability. The emphasis is on discarding economically viable from unviable projects rather than on arriving at a precise return figure. The paper starts by setting out the theoretical background regarding the identification and measurement of project benefits. It then presents a practical approach to measure such benefits in projects involving the expansion of passenger capacity and, subsequently, those aimed at expanding aircraft capacity. Projects for the freight market and the estimation of airport costs are both treated separately.





Keywords: airports, cost-benefit analysis, infrastructure, transport
JEL codes: D61, H43, H54, R41


The authors gratefully acknowledge comments by M. Hansen (Institute of Transportation Studies, U.C. Berkeley), by M. Turró, P. Boeuf and A. Lynch from the European I...