road user focused model of decision making which allows the government to weight up the costs and benefits of road infrastructure projects in current values.
1 of 9
who is affected?
tax payers will want to know that thei money is being spent well, road users , supply meet demand for capacity , balanced with environemental concerns and those whol live near the proposed infrastructure projects.
2 of 9
A02
government has allocated £28bn on road infrastructure provision in 2013
3 of 9
the four stages of COBA
Identification monetary costs and private c/b, estimation of shadow costs where the relative opportunity cost to the user is calculated
4 of 9
4 stages
foecasts over the expected life of the infrastructure, this includes the calculation of NPV
5 of 9
4 stages in brief
identification/estimation, forecast and benefit to cost ratio.
6 of 9
what is NPV
net present value , the process of forect, which discounts the furure cash flows into the current value of money
7 of 9
the problems with COBA in identify stage.
wider economic impacts of road infrastructure building is not included, 1st and 2nd parties are given to high a priority, whist external c/b are not taken into account in user focused model.
8 of 9
which negative and positive externalities are not included
such as increases in air pollution, blight or accidents and neither + ity, such as improvenment in road integration or economic growth
9 of 9
Other cards in this set
Card 2
Front
who is affected?
Back
tax payers will want to know that thei money is being spent well, road users , supply meet demand for capacity , balanced with environemental concerns and those whol live near the proposed infrastructure projects.
Comments
No comments have yet been made