Munich Personal RePEc Archive

Accounting for peak shifting in traditional cost-benefit analysis

Snarr, Hal W. and Axelsen, Dan (2007): Accounting for peak shifting in traditional cost-benefit analysis. Published in: The Journal of Economic Development and Business Policy , Vol. 1, No. 1 (December 2007): pp. 1-23.

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Abstract

When cost-benefit analysis fails to account for peak-shifting the benefits of road improvement options are miscalculated. Using theory from transportation economics, we derive a simple model that disaggregates the average daily equilibrium into peak, counter-peak, and off-peak equilibria. This paper demonstrates how accounting for peak-shifting improves the performance of cost-benefit analysis.

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