EQUITY IN COST-BENEFIT ANALYSIS. A CASE STUDY OF THE THIRD LONDON AIRPORT

This paper examines the equity issues arising from this London Airport project, and suggests a model for incorporating these equity considerations in the cost-benefit results. It is assumed that the cost-benefit analyst is free to make the necessary value judgements for this purpose. The reason why equity issues arise in cost-benefit research is considered, and the groups on whom the costs and benefits of the airport will utilimately fall are identified. A model is suggested for recalculating the research team's results to take account of the equity implications. The results of recalculating the team's costs on the basis of the proposed model, and the notations, sources and derivation of the weights used in the model are appended. The problem facing the Roskill Commission (which requested the cost-benefit analysis of the 4 alternative sites for the Third London Airport) was the magnitude of uncompensated losses, irrespective of whether such losses were imposed on the rich or on the poor. It is argued that if one regards equity issues as inseparable from the economic efficiency issues arising from a public project, and if the analyst is allowed to make his assumptions where the political process provides no clear-cut directive, the main equity issues to be taken into account are local rather than national. In the case of the Third London Airport, various aspects of these issues have been suggested in the model for scaling down the benefit to the users or upgrading the costs (disbenefits) to the sufferers. The results of applying these weights to the research teams estimates are summarized in tables.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/856156
• Corporate Authors:

  London School of Economics and Political Science

  Houghton Street, Aldwych
  London WC2A 2AE,   England 
• Authors:
  • Nwaneri, V C
• Publication Date: 1970-9

Media Info

• Pagination: p. 235-254
• Serial:
  • Journal of Transport Economics and Policy
  • Volume: 4
  • Issue Number: 3
  • Publisher: University of Bath
  • ISSN: 0022-5258
  • Serial URL: http://www.jtep.com

Subject/Index Terms

• TRT Terms: Airport operations; Airports; Benefit cost analysis; Equity; Finance; Location; Mathematical models
• Uncontrolled Terms: Models
• Old TRIS Terms: Airport location
• Subject Areas: Aviation; Finance; Society; Terminals and Facilities;

Filing Info

• Accession Number: 00155671
• Record Type: Publication
• Source Agency: Massachusetts Institute of Technology
• Files: TRIS
• Created Date: Aug 31 1977 12:00AM