Transcription of TAG UNIT A1 - GOV.UK
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TAG UNIT A1 - GOV.UK
TAG UNIT Cost-Benefit Analysis July 2021 Department for Transport Transport Analysis guidance (TAG) This TAG Unit is guidance for the APPRAISAL PRACTITIONER This TAG Unit is part of the family A1 COST BENEFIT ANALYSIS Technical queries and comments on this TAG Unit should be referred to: Transport Appraisal and Strategic Modelling (TASM) Division Department for Transport Zone 2/25 Great Minster House 33 Horseferry Road London SW1P 4DR TAG Unit Cost-Benefit Analysis Contents 1 Introduction 2 What is Cost-Benefit Analysis? 2 The scope of this Unit 2 2 Principles of Cost-Benefit Analysis 3 Introduction 3 The without-scheme and with-scheme cases 4 Appraisal periods 4 Interpolation and extrapolation over the appraisal period 6 Perceived costs, factor costs and market prices 9 Real prices and accounting for inflation 10 Present values and discounting 11 Cost-Benefit Analysis metrics 13 Uncertainty and sensitivity testing 14 3 Reporting Cost.
1.1.1 The Green Book [HMT, 2003] sets out best practice guidance on assessing and evaluating policies, programmes and projects and recommends that options should be appraised using cost-benefit analysis (CBA). The Green Book defines CBA as …
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