Economic Evaluation of Investments in Airports: Recent Developments

Abstract The problem of how to evaluate investments in airports has now been studied for over 50 years. This paper analyzes the use different methods like cost–benefit analysis (CBA), economic impact (EIA), and computable general equilibrium (CGE) models address question. It assesses strength weaknesses each method, it discusses which have used countries. argues that CBA approach newer CGE modeling policy issue well both are appropriate, although improvements possible, especially aspects evaluation. Furthermore, more data intensive able analyze broader evaluation question had difficulty. EIA does not satisfactorily, misleads air transport policy. But this contrasts sharply with practice. extensively decide on airport investment. approaches very promising, though further work is needed them reach their full potential. pays particular attention relationship between investment also possible role wider benefits (WEBs) aviation