This guide provides practical guidance to project analysts and managers in Transport Canada on how to evaluate the economic merits of alternative expenditure proposals using benefit-cost analysis (BCA). Illustrative applications of BCA in Transport Canada are provided throughout the guide and in an appendix. Although the guide is oriented towards the practical rather than the theoretical, from time to time, the rationale behind a key element of a BCA is explained. The guide is divided into four parts. Part I deals with the BCA framework and approach to the analysis of options. It consists of two chapters: Chapter 4.0 sets out the basic steps in setting up a project evaluation; and Chapter 5.0 focuses on the establishment of a common frame for the comparison of options. Part II of the guide provides more specific advice on the estimation of the costs, benefits and other effects for various options. It consists of three chapters: Chapter 6.0 sets out the basic principles of costing and discusses issues associated with measuring the project-related costs of options; Chapter 7.0 examines principles and issues relevant to the measurement of benefits and other effects of projects; and Chapter 8.0 covers the comparison of future costs, benefits and other effects through discounting. Part III focuses on the analysis and presentation of results. It consists of two chapters: Chapter 9.0 examines the process for comparing options, including the selection of the evaluation technique and ways of dealing with uncertainties; and Chapter 10.0 reviews the structure of a BCA report. Part IV is a final summary of key points in the conduct of a BCA. Three appendices follow Part IV: Appendix A contains brief descriptions of the application of BCA principles and concepts to illustrative transportation projects; Appendix B contains a table of discount values; and Appendix C contains a list of key references for further reading on BCA.


  • English

Media Info

  • Features: Appendices; Figures; References;
  • Pagination: 89 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00812534
  • Record Type: Publication
  • Report/Paper Numbers: TP11875E
  • Files: TRIS
  • Created Date: Jun 21 2001 12:00AM