cost-benefit analysis

AWWTM: DafT’s deeply regressive fantasy formula

Flicking through Google Reader, catching up, something caught my eye in George Monbiot’s latest:

Cost-benefit analysis is systematically rigged in favour of business. Take, for example, the decision-making process for transport infrastructure. The last government developed an appraisal method which almost guaranteed that new roads, railways and runways would be built, regardless of the damage they might do or the paltry benefits they might deliver(8). The method costs people’s time according to how much they earn, and uses this cost to create a value for the development. So, for example, it says the market price of an hour spent travelling in a taxi is £45, but the price of an hour spent travelling by bicycle is just £17, because cyclists tend to be poorer than taxi passengers(9).

I was vaguely aware that the government had complicated infrastructure cost-benefit formulae that included attempts to put value on people’s time, but I wasn’t aware that they had gone so far as to value the time of cyclists versus the time of taxi passengers.  So I followed the reference #9.  I’ve read some absurd documents in my time, but I wasn’t quite prepared for this.

Continue reading at At War With The Motorist…