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Rail Infrastructure: Challenges for Cost–Benefit Analysis and Other ex ante Evaluations

Abstract
 Cost–benefit analysis (CBA) plays a major role in the ex ante evaluation of rail projects in many western countries. At first sight carrying out a CBA for rail projects seems straightforward, since cost estimates are almost always available, and the most dominant benefits are generally known, being the travel time saved and the increase in consumer surplus due to induced demand. However, the practice is much more complex: the quality of current estimates for costs and benefits is often poor and several benefits-related aspects are ignored. This article gives an overview of the challenges in improving the quality of CBAs for rail projects.