Appendix 2: Cost-benefit analysis and accessibility and environment

Conclusion

34

This example has shown how an analysis of costs and benefits might assist an Authority in making a rational choice when faced with the need to decide between three schemes, in which there need to be weighed up the three major variables of cost, accessibility and environment. Since no completely clear-cut decision emerges, and the Authority is left to make a judgment, it might be wondered whether the analysis is really of help. The answer to this lies in recognising that the Authority has to make the decision in any case, and in contrasting its situation if it does so with or without the benefit of the analysis.

35

In brief, without the analysis the Authority would probably know the costs of the schemes but would have no measure of just what they would achieve, so that it could not compare the achievements nor judge the extra benefits it could obtain (in cases where a series of alternative schemes can be regarded as stages of a long term design) by proceeding from one stage to the next. Furthermore, it could not measure just what it would be losing in accessibility if it improved environment, and perhaps would over-value the loss and thereby undervalue the environment.

36

To a large degree, therefore, a decision without the analysis would be somewhat blind. And however immature the analysis technique may be at this stage, its use will lead to surer judgment. And as the technique matures, and experience and data are accumulated, so will rational decisions be assisted in the wise use of public investment resources.

37

The conclusions set out in para. 33 reflect the fact that Newbury is a small town with relatively simple problems, where it is possible to achieve high standards of accessibility and environment without resorting to comprehensive redevelop-ment. We have not applied the method described in this Appendix to larger towns where our studies have shown that comprehensive redevelopment is essential if standards of accessibility and environment are to be substantially improved.