Incorporating distributional impacts (equity) into the CBA framework.

Transportation decisions can have large and varied impacts on travellers and their communities. It’s important to measure these effects and consider their impact on various groups when planning projects.

Waka Kotahi uses a framework to decide which transport projects and programmes to pursue. The economic business case must contain a cost–benefit analysis (CBA). CBAs assess the economics of a proposal by valuing (monetising) the costs and benefits to all members of society. However, CBAs sum across a wide range of people and don’t calculate inequities between groups or individuals, or who ultimately benefits from the project.