Railway infrastructures sustainable interventions: Proposal for a Cost-Benefit Analysis application

Abstract

The decision to intervene in Railway Infrastructures (RI) in a sustainable way is complex, because the involved costs require different assessment levels, given their relevance to all stakeholders in decision-making, and are not always easily quantifiable. Following recent decisions of the EU, it is urgent to carry studies to support RI sustainable interventions. In this context, the use of methodologies based on Cost-Benefit Analysis (CBA) contributes positively to base decisions on RI investment projects. CBA is a methodology to assess the net economic impact of a public investment project and can be used for a variety of interventions. CBA is based on the conversion to monetary values of all costs and benefits, even when they are intangible. The purpose of a CBA is to evaluate if a project is feasible from the point of view of social welfare through the algebraic sum of their costs and benefits discounted over time. This paper presents a framework for the assessment of RI sustainable projects based on CBA, which integrates the development of community policies and financial instruments. It aims to provide technical support and contribute to the reflection about co-financing rates modulation.