Cost Benefit Analysis Building

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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. 
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Trunk Roads

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. 

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