Economics of Transportation Infrastructure: Balancing Needs of Biodiversity Conservation and Costs

Economic analysis tools are important instruments that support decision making for infrastructure development including rural roads. The use of these tools such as economic valuation, cost-benefit analysis and multi-criteria analysis help identify potential impacts and their costs, which could be measured through economic, social and environmental costs. Case studies in Myanmar, Uganda, and Amazon provide real life examples—where it is clearly demonstrated that environmental and social costs should be incorporated from the beginning of the planning process to help prioritize road infrastructure investments. More importantly, road projects that generate more costs than benefits for society should be avoided; indeed, investing in avoidance can be less expensive than investing in mitigation.