The problem of using the cost-benefit analysis in making decisions about electromobility development in urban public transport in Poland

Abstract

Motivation: Polish Act on Electromobility and Alternative Fuels obliges 83 cities to prepare every three years cost-benefit analysis (CBAs) using zero-emission buses (ZEBs) in urban public transport. First-time obligated institutions prepared them in 2018. The organisations indicated in the Act on Electromobility, and Alternative Fuels had experience using this tool, e.g. applying for EU co-financing of investment projects. However, the analysis of the selected documents shows significant differences in the approach to developing CBAs. Aim: The aim of the study is to identify the most critical problems related to the use of CBA as a decision-making tool for the implementation of investments involving the performance of ZEBs in urban public transport. The study identifies the main advantages and limitations of the instrument. It also proposes introducing requirements by the legislator, which could increase the comparability of CBA results and thus reduce the uncertainty of decisions. Results: Using CBA as a decision-making tool requires maintaining an appropriate methodological regime. It involves the identification of alternative projects that allow the realisation of the objectives set by the decision-maker. Its essence is to identify the undertaking that will allow achieving the best results from the organisation’s point of view and from the social, environmental, and economic perspective. The research indicates that the lack of explicit guidelines from the legislator concerning the methodology of CBA preparation for the needs of ZEB implementation hinders comparability of the obtained results and reduces uncertainty of decisions made on their basis.