Estimating the costs of accidents and environmental problems is an important topic. A Strategic Research Programme (SIP) on the monetary valuation of non-market economic and social 'goods' (factors which do not have a price) for inclusion in cost-benefit was started in 2003. The programme will focus on methodological issues in studies designed to value non-market factors.
The transport sector uses cost benefit analysis to establish socio economic profitability and prioritise between projects. In such analysis non-market factors such as travel time, traffic safety and environmental conditions is not valuated. This programme is established to study general method challenges and to develop more consistent and robust methods for estimating non-market goods.
Development of better and more consistent methods cannot be achieved through single projects with fixed aims. Thus, this strategic institute programme is established as a framework to study general problems of method to develop better methods, that is form a basis to carry out more consistent and robust cost-benefit analysis and a more proper pricing in the transport sector.
This programme is a strategic institute programme (SIP), aimed at developing new research areas and render professional activities leading to a deeper understanding. The programme's status is reported to the Norwegian Research Council every year. The initiative to establish the strategic institute programme was made by the institute itself, while the Research Council is held responsible for the professional quality assurance of the SIP.
This programme is financed by the Research Council, partly by the annual basic funding that the Institute of Transport Economics receives, and partly by earmarked transfers. From 2003 to 2006, the programme is granted approximately EUR 62 500 a year, giving a total budget of EUR 250 000.
The budget is spent on man-hours worked by research workers at TOI.