Analysis Framework

The analysis framework defines the basic evaluation process structure. It is important to clearly define this framework early in the process because it allows stakeholders to understand the process, allows consistency between different evaluations, defines the information that will be needed for analysis.

The analysis framework usually defines the following factors:

Project description: What will be done? Where? When? How? By whom?
Project objectives and impacts: What is the problem or goal that the project is intended to address? What objectives (specific ways to achieve goals) and impacts (benefits and costs, also called evaluation criteria) should be considered in the economic evaluation?
Analysis Purpose: Will the analysis be used to determine if the project should be undertaken? Will it be used to determine which of a group of projects should be selected or which should have highest priority?
Perspective and scope: What are the agency's primary objectives? For whom are benefits being sought? Who will incur the direct and indirect costs?
Time period of analysis: Over what period of time should projects be evaluated?
Appropriate level of effort for the analysis: Given the cost of the project, how much effort should be devoted to benefit-cost analysis and which aspects should receive the most attention?
Defining Alternatives: What is the base case (the conditions that will result if the project is not implemented)? What alternatives will be considered and compared with the project?
Type of economic analysis to be used. Should the project be evaluated based on benefit-cost ratio, net present value, internal rate of return, or some combination of these?
Project schedule: When will costs be incurred? When will benefits be realized?
Geographic scope of the analysis: What area will be affected by the project? By its alternatives?
Performance indicators: What indicators will be used in the future to determine whether the project is achieving its objectives? What baseline data should be collected before the project is implemented.
Sources
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DfT (2006), Transport Analysis Guidance: Integrated Transport Economics and Appraisal, Department for Transport (www.webtag.org.uk/index.htm).
FHWA (2005), Highway Economic Requirements System (HERS): Technical Report, Federal Highway Administration (www.fhwa.dot.gov); at www.fhwa.dot.gov/asset/hersst/pubs/tech/tech00.cfm.
FHWA and FTA (2007), The Transportation Planning Process Key Issues: A Briefing Book for Transportation Decisionmakers, Officials, and Staff, Federal Highway Administration, Federal Transit Administration, FHWA-HEP-07-039 (www.planning.dot.gov).
Todd Litman (2001), What’s It Worth? Life Cycle and Benefit/Cost Analysis for Evaluating Economic Value, Presented at Internet Symposium on Benefit-Cost Analysis, Transportation Association of Canada (www.tac-atc.ca); at www.vtpi.org/worth.pdf.
Todd Litman (2009), Planning Principles and Practices, VTPI (www.vtpi.org); atwww.vtpi.org/planning.pdf.
M. Maibach, et al. (2008), Handbook on Estimation of External Cost in the Transport Sector, CE Delft (www.ce.nl); at http://ec.europa.eu/transport/costs/handbook/doc/2008_01_15_handbook_external_cost_en.pdf
Marsden Jacob Associates (2005), Frameworks For Economic Impact Analysis And Benefit-Cost Analysis, Economic Regulation Authority, Western Australia (www.era.wa.gov.au ); at www.era.wa.gov.au/water/library/Frameworks_for_economic_analysis_and_benefit_cost_analysis.pdf .
NZTA (2010), Economic Evaluation Manual, Volumes 1 and 2, New Zealand Transport Agency (www.nzta.govt.nz); at www.nzta.govt.nz/resources/economic-evaluation-manual/volume-1/index.html and www.nzta.govt.nz/resources/economic-evaluation-manual/volume-2/docs/eem2-july-2010.pdf.
PCT (2011), Measuring Transportation Investments: The Road To Results, Pew Charitable Trusts and The Rockefeller Foundation (www.pewtrusts.org); atwww.pewtrusts.org/uploadedFiles/wwwpewtrustsorg/Reports/State_policy/Transportation_Report_2011.pdf.
Performance Measurement Exchange (http://knowledge.fhwa.dot.gov/cops/pm.nsf/home), is a website supported by the Federal Highway Administration to promote better transport planning.
Nariida C. Smith, Daniel W. Veryard and Russell P. Kilvington (2009), Relative Costs And Benefits Of Modal Transport Solutions, Research Report 393, NZ Transport Agency (www.nzta.govt.nz); atwww.nzta.govt.nz/resources/research/reports/393/docs/393.pdf.
TC (1994), Guide to Benefit-Cost Analysis in Transport Canada, Report TP 11875E, Transport Canada; at www.tc.gc.ca/finance/BCA/en/TOC_e.htm.

Analysis Framework

Sources