1. The Challenge: Ensuring Public Investment Delivers Public Value
Decisions regarding major public engineering projects are among the most consequential acts of public stewardship. These investments, whether in transportation, water, or energy infrastructure, commit substantial public funds for decades and fundamentally shape a region’s economic competitiveness and quality of life. As a mixture of economic, political, and humanistic elements, public works are inherently “complex problems.” To navigate this complexity, policymakers must employ a structured economic framework. This is not merely an analytical convenience; it is an essential tool for responsible governance that builds public trust through transparent, objective processes. A disciplined, rational approach ensures that taxpayer funds are used optimally and safeguards against arbitrary decisions that lead to inefficient outcomes and a failure to deliver maximum public value. This brief outlines a set of actionable criteria, derived from established principles of engineering economic analysis, to guide policymakers toward fiscally sound and publicly defensible investment choices.