COBA Model

The COBA model for planning roads. WARNING - a lot of the advantages are purely how it works. 

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  • Created by: TessAni
  • Created on: 20-01-13 12:51

COBA Model

Advantages

  • Total benefit is split into value of time savings, accident cost savings and vehicle operating cost
  • Costs are split into two: capital costs which are incurred in the early phase of any major road project and include construction costs, land purchase and so on; and maintenance costs - the annual costs to cover the costs of lighting, cleaning and routine resurfacing work + emergency services
  • They also take into account the benefits for the individual users as well as the costs - over a long period of time
  • They are also viewed in comparison with other potential road building schemes before decisions are made
  • Well understood and has been the standard within government for the past 30 years

Disadvantages

  • The COBA model is very difficult to comprehend, which limits the ability of the public to participate fully when there are public inquiries into new road schemes
  • COBA does not recognise all of the benefits and costs involved. It is basically a user-based method of appraisal. It does not, for example, seek to put a monetary value on the external costs and benefits involved, nor does it do so for the indirect costs and benefits of a new road scheme
  • The environmental effects a new road project are not adequately addressed. This is largely because of the problem of placing a monetary value on such items.
  • Concerns that value judgements have to be made to estimate the total benefits of a road project. These particularly relate to the value of time, which is usually the largest benefit in most cost-benefit calculations
  • the COBA model only applies to roads. What is really needed is a model that applies to all forms of transport. This would provide a level playing field.

Evaluation

It was for all these disadvantages that a 'new approach to appraisal' has been put in place by the Department for Transport, however, the COBA model remains essential. 

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