Applicability of Economic Evaluation to China’s Urban Transportation Projects in A Changing Society
This chapter explores the applicability of economic evaluation methods developed and applied in countries with market economies to alternative urban transportation development projects in China. It describes China's overall economic development since initiation of its "opening to the rest of the world" policies. The chapter overviews formal economic evaluation methods for urban transportation projects. It reviews what are generally considered to be the practical aspects of an economic analysis of an urban transportation project. The chapter also explores basic elements required for economic evaluation of China's urban transportation system. It is divided into two parts: analysis of social and environmental impacts and analysis of economic efficiency. Economic evaluation of urban transportation projects seems to be a recently introduced requirement for project approval in China. Although profitability of a project appears to be a familiar concept to Chinese urban transportation planners, the concept of discounted cash flows for the different alternatives considered seems to be relatively new to them.