Transport

Public Policy, Appraisal, and Evaluation

NERA is a leader in advising governments, regulators, operators, and other industry stakeholders on planning and investment frameworks and on the appraisal and evaluation of transport sector projects. Our experts provide high-level advice on issues relating to transport policy and planning, financing, appraisal and evaluation, taxation and pricing, safety regulation, and other public policy issues.

NERAs expertise covers a wide variety of public policy issues in the transport sector.

• Policy and planning. NERA has extensive experience  providing advice on planning and policy across the transport sector. We have carried out major studies on the development of new planning and investment frameworks for transport infrastructure, and reviewed the regulatory and institutional arrangements applying to transport industries. We also carry out regulatory impact assessments of specific policies.
• Appraisal and evaluation methodologies. Through its involvement with the UK Treasury, Department for Transport, and others, NERA has contributed significantly to the development of central government appraisal and evaluation guidelines. This includes both the development of the Green Book and guidance on the use of Multi-Criteria Analysis. We also advise on specific aspects of appraisal methodologies, such as discounting, adjusting for optimism bias, and valuing changes in health and injury risks.
• Financing. NERA advises on alternative funding structures for infrastructure and other major investments, the likely effectiveness of different financing mechanisms, and ways to encourage private sector participation. We have carried out a number of projects reviewing the quantitative evidence on the benefits of privatization, and assessing the relevance of these findings to firms in the transport sector.
• Subsidy and support mechanisms. NERA provides robust and independent economic analysis of subsidy and support mechanisms. We advise on the design of support mechanisms, considering issues such as the alignment of incentives, efficient and sustainable risk allocations, and compatibility with State Aid provisions.
• Cost benefit and economic impact studies.  NERA has carried out high-profile cost-benefit analyses, economic impact studies, and regulatory impact assessments for a wide range of transport sector clients. Many other projects have assessed the likely impacts of proposed new policies.
• Environmental impacts and other externalities. We provide robust estimates of external costs and benefits, either as the main focus of a study or as an input into a wider project, such as a cost-benefit study. We have also carried out projects on the valuation of injury and health risks, and on the appropriate treatment of non-monetized impacts.