This paper is developing a methodology for evaluating non-market goods caused by transportation project such as time saving and environment deterioration. Evaluation method have been established for market goods by using the concept of “Compensating Variation” or “Equivalent Variation”, but not for non-market goods. This paper. first, establishes a definition of the benefits of the time saving and environment change on the basis of welfare economics. Secondly, the possibility of a practical measurement of these benefits based on market data for transportation activity is shown by an application of a general equilibrium approach.
