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Increased congestion cost, Operating cost savings, Increased accidents…
Increased congestion cost
DIFFERENCES BETWEEN CBA AND FINANCIAL APPRAISAL
GOVERNMENT'S ROLE IN TRANSPORT INVESTMENT
SUBSIDY
Role and involvement of government in subsidy
Financial assistance
Provide social welfare
Ensure free fair competition with no abuse of market position
Ensure safe and healthy transport
Provide accessibility and facilities for people
Arguments in subsidy
Efficiency
Equity
Arguments against subsidy
Effectiveness and fairness issues
Increase government burden
Financial cost increase
Risk of fraud
Impact of transport subsidies
Influence environmental performance of vehicles
Affect modal share by altering the price competitiveness among different modes of transport
Affect transport management decisions
Increase transport demand
Affects sustainable transport
A form of financial aid/support extended to an economic sector
COST BENEFIT ANALYSIS
The discount rate
Which costs and benefits
To consider for public investments, the government has devised a technique called the social Cost Benefit Analysis (CBA)
Valuation of costs and benefits
Operating cost savings
Increased accidents costs
Capital cost savings
Environmental consideration
Journey time savings
Additional road maintenance costs
Increased transport operating cost