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2015cpr

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investments in specific locations. Improvements are evaluated based on benefit-cost analysis, but<br />

not all external costs (such as noise pollution or construction-related loss <strong>of</strong> wildlife habitat) or<br />

external benefits (such as productivity gains that might result from transportation improvements<br />

that open markets to competition) are fully considered. Across a broad program <strong>of</strong> investment<br />

projects, such external effects might cancel each other; but, to the extent that they do not, the true<br />

“needs” could be either higher or lower than the models predict.<br />

Introduction xxxvii

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