Appraisal of New Road Schemes
One of the earliest applications of cost/benefit analysis in the appraisal of new motorways and trunk roads - it has been developed into the COBA model.
It is necessary for two main reasons:
- Roads are a quasi-public good for which no direct charge is made. Consequently the market mechanism cannot be used to allocate resources
- Central and local government expenditure on roads is invariably limited in relation to the many projects that are likely to be proposed. Priorities have to be determined.
The new approach to building trunk roads is unlike COBA alone as it shows whether small-scale schemes, such as improved traffic management, can achieve the same or most of the benefits of larger schemes.
It also provides information on whether a less environmentally intrusive proposal would produce the same level of benefit.
These are all submitted into the Appraisal Summary Table.