Beware aviation economists bearing externalities, and crappy benefit cost ratios, which they are.
http://www.economicsonline.co.uk/Market%20failures%20graphs/Externalities-positive-production.png
A throwaway line of mine a couple of weeks ago about the Wellington City Council’s enthusiasm for the proposed airport runway extension prompted a couple of comments here from Tim Brown, chair of Wellington International Airport Limited (WIAL) – owned 66 per cent by Infratil and 34 per cent by the Wellington City Council. As I noted in response to Tim, I was predisposed to be sceptical about the proposal, but would be keen to see the analysis when it was published.
This week a swathe of reports was released, including a cost-benefit analysis prepared for WIAL by Sapere Research Group. The Dominion-Post led with talk of $2000 million of benefits for an investment of $300 million or so, suggesting that there really shouldn’t need to be much further debate about the economic merits of the proposal.
But, of course, any cost-benefit anaIysis is only a reflection of the…
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Utopia, you are standing in it! 
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