Adopting an evaluation tool-kit, as an analytical model to facilitate decision making for e-bus procurement and e-bus related investment
The tool-kit responds to the need of a factual, rational appraisal of investment options; it incorporates two analytical components to depict alternative scenarios and scaling them by evaluation criteria.
COST BENEFIT ANALYSIS (CBA) -
"Cost-Benefit Analysis (CBA) is the method by which the future benefits of an investment are determined and compared to its costs. The end result is a Benefit-Cost Ratio (BCR), which is calculated by a investment’s total benefits divided by its total costs. The BCR is a numerical expression of the "cost-effectiveness" of the investment. An investment is considered to be cost effective when the BCR is 1.0 or greater, indicating that the benefits of the prospective investment are sufficient to justify its costs.
The Cost/Benefit model enables any potential investor to carry out the cost/benefit analysis of most projects of interest.
It provides the Net Present Value (NPV) of an investment alternative, allows a comparison of all NPVs and, thus, facilitates decision-making (DSS).
MULTICRITERIA ANALYSIS (MCA) -
This component allows selecting and valuing criteria for categories of non-monetized benefits (and costs). The criteria to be used should be complete, mutually independent and assessable.
This tool-kit is of potential use/benefit, therefore, to both private and public investors, including electric bus deployment and when setting up related infrastructure (energy grid, charging stations).
Resources needed
The tool developed is ready for utilisation; relevant costs are mainly related to data collection & analysis in each application and vary according to the chosen level of detail.
Human resources:
n. 1 Economist (senior)
n. 3 Data analyst (2 junior & 1 sr)
n. 3 Software developer (1 jr & 2 sr)
Evidence of success
The tool-kit model is versatile and applicable to various contexts and needs (e.g. appraisal of engineering works to /mitigate coastal erosion). Applications carried out confirm the capacity to perform economic evaluation of large investments comparing 3 or more scenarios.
ACB and MC are analytical methods currently recommended for use for a wide range of public or private investment initiatives at large scale and international level (source: the World Bank, ADB, EC)
Difficulties encountered
Attention has been paid to avoid double-counting in the M-C analysis those monetary costs or benefits , which may have been encompassed already in the Cost-Benefit analysis.
Potential for learning or transfer
Originally developed within an Italian R&S project funded by the Italian Ministry of University and Research (SIGIEC - years 2013 to 2017), the model has been further developed in another project, VEROCOST, financed by the Regional Operation Programme of Calabria Region (Italy) in the period 2017-2020. A case-demonstration has been carried out in Interreg Europe ThreeT project. The tool-kit is transferable without the need of any particular adaptation to other regional contexts. As aforesaid, the template has been readjusted and made available to n. 8 European partners of ThreeT project to facilitate the pre-appraisal of actions to be incorporated in their Action Plans.
The tool-kit is expandable in a modular form for each of the possible scenarios/alternatives under consideration. The version is available in English but guidelines and parameter headings can be easily translated into another language. Formulas are embedded in the model and can be modified by a coded access.
Tags: Action plan, Models, Template
