Abstract Manager

The Ontario Ministry of Transportation's (MTO’s) Economics and Methodologies Office intends to deliver a presentation outlining best practices for conducting Economic Cost Benefit Analysis (ECBA) for highway projects their practical application in Ontario. We intend to highlight the availability of the ECBA guidance that the ministry provides to partners upon request, which can be accompanied by additional support. ECBA is a key method used by the Ministry to evaluate the economic feasibility of proposed highway projects and to help prioritize their construction. The ECBA method is based on the practical application of research from academic literature and best practices employed by transportation professionals across jurisdictions. MTO’s ECBA guidance is relevant not only to the ministry but to anyone performing CBA including municipalities, agencies, and consultants to inform decision-making related to roadworks. 

The presentation will provide an overview of MTO’s methodology for conducting ECBA, including:

• how it differs from other types of cost-benefit analysis (e.g., Financial CBA)
• ECBA’s strengths and weaknesses, and how the ministry’s guidance evolves over time.
• the types of costs and benefits that are included in our analysis
• the determination of key parameter values and assumptions (such as the value of time) to reflect Ontario’s context.
• accounting for uncertainty using Monte Carlo simulation.

We will also provide examples of how the Ministry has applied ECBA to real-world projects, discuss some of the challenges of applying the methodology in practice, and highlight planned improvements.

Overall, this presentation will provide attendees with a detailed understanding of ECBA and the factors considered by MTO when evaluating the economic feasibility of highway projects. We believe this presentation will be of interest to transportation professionals who work with various jurisdictions across Canada on roadworks, and those with an interest in the economic evaluation of infrastructure projects.