MEDIA RELEASEParis, 20 January 2017

Improving transport cost-benefit analysis
The International Transport Forum releases a new study today on better ways to measure the benefits
that transport investments create for society.
A commonly used quantitative measure of the extent to which a project, over its lifetime, will bring
benefits that exceed its costs is cost-benefit analysis (CBA). However, CBA faces major challenges:
 There can be a mismatch between what a CBA delivers and the information most sought bydecision makers (such as impacts on jobs and regional growth).
 The scope of benefits captured in a CBA is generally constrained by practical limitations offorecasting and valuation.
 Fundamental changes to the quantity or locations of businesses, investments, households andemployment anticipated from transport investments are not captured within standard CBA.
The report, based on a roundtable meeting of 30 experts from around the world, describes efforts toimprove decision making through improving the quality of transport CBA. Three areas are addressed indetail: strategies for making the most of CBA, valuing and forecasting reliability benefits, and capturing
wider economic impacts of transport investments.
The report’s recommendations inlcude: CBA guidelines can be expanded to include reliability and some wider impacts: The
current evidence base on the valuation and forecasting of reliability benefits, agglomeration
benefits and labour supply benefits provides a sufficiently rigorous basis for inclusion within thecore cost-benefit analysis of major transport projects.
 Wider economic impacts should be examined where they are expected to be significant:For any project, a strong and scrutinised case for the inclusion of wider benefits is required tooverturn the traditional assumption that user benefits adequately account for the whole
economic impact of a project.
 CBA need not dominate decision making: Cost-benefit analysis is valuable, yet imperfect.
Supporting frameworks and alternative evidence may be useful to communicate possible project
impacts – for instance the ex-post analysis of past projects, economic impact analysis or aqualitative explanation of non-quantifiable impacts. Presenting such diverse information todecision-makers is better than producing a single performance measure that includes bold andunfounded assumptions or ignores potential impacts altogether.

The report “Quantifying the Socio-economic Benefits of Transport” can be accessed here
Media Contact:
Michael KLOTH+33 (0)6 27 21 47 41
michael.kloth@itf-oecd.org
ABOUT THE INTERNATIONAL TRANSPORT FORUM
Who we are
The International Transport Forum is an intergovernmental organisation with 57 member countries. It acts as a think tank fortransport policy and organises the Annual Summit of transport ministers. ITF is the only global body that covers all transportmodes. The ITF is administratively integrated with the OECD, yet politically autonomous.
What we do
ITF works for transport policies that improve peoples’ lives. Our mission is to foster a deeper understanding of the role oftransport in economic growth, environmental sustainability and social inclusion and to raise the public profile of transport policy.
How we do it
ITF organises global dialogue for better transport. We act as a platform for discussion and pre-negotiation of policy issues acrossall transport modes. We analyse trends, share knowledge and promote exchange among transport decision-makers and civilsociety. ITF’s Annual Summit is the world’s largest gathering of transport ministers and the leading global platform for dialogue
on transport policy.
Learn more: www.itf-oecd.org