Evaluating transport infrastructure investments: the Dutch experience with a standardized approach
In many countries research plays an important role in the decision-making processes of infrastructure investments, since findings help decision-makers to assess and evaluate the impacts of new infrastructure. During the past decade the trend in research supporting the decision-making process has been towards an impact evaluation based on a broad definition of welfare. Not only are economic impacts included in ex-ante project evaluations of new infrastructure, but also increasingly more these prove to be ecological and, sometimes, even social. In many countries cost-benefit analysis (CBA) is used for evaluating all possible impacts of infrastructure investments. This currently includes the Netherlands, where, historically, a mixture of CBA and multi-criteria analysis (MCA) has been used. Here, the present paper will aim to answer the following questions around this relatively ‘young’ standardized CBA practice in the Netherlands. Why have Dutch authorities chosen CBA as the main evaluation method for new infrastructure projects? Is this choice well thought out, taking the, sometimes fierce, scientific criticism into consideration? Has CBA practice in the Netherlands exploited its potential? Has the practice led to transparent and theoretically well-founded exante impact evaluations, and has the CBA practice really supported decisionmaking on new infrastructure projects?
Abstract
The Dutch government introduced a requirement in 2000 to evaluate proposed major infrastructure plans using a cost-benefit analysis (CBA) following published guidelines. Since then 13 new major infrastructure projects have been evaluated. The paper reviews the Dutch standardized CBA practice since 2000. The overall conclusion is that the use of standardized CBA has improved the quality of ex-ante evaluations of large infrastructure projects in the Netherlands. However, the relatively young CBA practice has not yet fulfilled its full potential. About half of the CBAs analysed can be considered as being suitable for helping decision-making. The other half has weaknesses with respect to methods and assumptions. Looking at the standardized CBA’s influence on policy-making, the most important conclusion is that unfavourable CBA results have contributed to the postponement of decisions and to the downsizing of projects.
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| Author(s) | Annema JA ; Koopmans C ; Wee B van |
| Publication date | 02-05-2007 |
| Publication | Transport Rev 2007; 27(2):125-50 |