Transport investment analysis has traditionally been conducted within the framework of conventional microeconomic theory. In particular, it has utilised the concepts of cost-benefit analysis to determine the relative efficiency of alternative courses of action. This paper questions the validity of such analytical techniques, given the current economic conditions with which we are faced. In situations where the factors of production are not fully employed, it is suggested that far greater attention be paid to the true opportunity costs of resources used in transport projects. The concept of the zero sum society is employed to highlight some of the problems associated with economic evaluations under prevailing economic conditions. The paper illustrates the arguments raised by reference to recent research on the value of reductions in traffic accidents. (Author?TRRL)

  • Supplemental Notes:
    • Proceedings of the 9th Australian Transport Research Forum, Adeliade, May 15-16, 1984.
  • Corporate Authors:

    South Australia Department of Transport, Australia

    Victoria Square
    Adelaide, South Australia,   Australia 
  • Authors:
    • Richardson, A J
  • Publication Date: 1984

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Filing Info

  • Accession Number: 00391076
  • Record Type: Publication
  • Source Agency: ARRB
  • Files: ITRD, TRIS, ATRI
  • Created Date: Mar 29 1985 12:00AM