This paper presents a micro-econometric framework to analyse choice data from participatory value evaluation (PVE) surveys. In a PVE survey respondents receive, similar to stated choice surveys, information on the social impacts of public sector projects before choosing the best policy portfolio according to their preferences. Respondents’ choices are limited by governmental and private budget constraints. The PVE data format is characterised by a mixture of discrete and continuous choice data. Building on recent literature of Kuhn–Tucker models, particularly the MDCEV model, a range of methodological and econometric contributions are provided facilitating model estimation and policy evaluation. We derive a set of closed form choice probabilities explaining the choice for the optimal portfolio with public projects, private consumption levels and whether to spend the public budget in full or not. The proposed policy evaluation framework is centred around the notion of social welfare maximisation. The parameter estimates are used to derive the optimal public sector budget and the corresponding portfolio maximising social welfare, but also to rank the set of feasible portfolios given a restricted budget, including sensitivity analyses. The proposed framework is illustrated using an empirical example on urban mobility investments in Amsterdam, The Netherlands.

Participatory Value Evaluation (PVE) is a new method to assess the desirability of government projects. In a PVE, individuals select their preferred portfolio of government projects given a constrained public budget. Individuals’ preferences for (the impacts of) government projects can be determined based on these choices. The obtained preferences can be used to rank government projects in terms of their desirability. Cost-Benefit Analysis (CBA) is an alternative appraisal method used to assess the desirability of government projects. CBA establishes the desirability of public projects through analyzing people's trade-offs between their private income and impacts of public projects. The primary objective of this paper is to investigate whether CBA and PVE lead to different policy recommendations in the context of urban mobility investments. We conducted CBAs and a PVE for 16 urban mobility investment projects and find indicative evidence that projects which focus on improving traffic safety and improvements for cyclists/pedestrians rank higher in the PVE, whereas car projects rank higher in the CBA analysis.