Conclusion

Abstract

We have discussed a variety of approaches to measuring the benefits of investments in infrastructure services (or local public goods). Our simplest measure of benefits can be interpreted as the discounted increase in net outputs by producers in the project affected area less the discounted net cost of providing the extra infrastructure services, evaluated at constant (world) reference prices; see sections 2, 3 and 5.1. In section 5.2, we redefined our benefit measure to take into account the possible endogeneity of prices for some goods. In section 5.3, we further redefined our benefit measure to take into account possible benefits to consumers of the infrastructure investment project.