On the Right Track? Valuing the ESG Effect of a Railway Infrastructure Upgrade on the Budapest-Zamárdi Line

This thesis evaluates the economic, social, as well as environmental impact of a railway infrastructure upgrade on the Budapest–Zamárdi line in Hungary. Through implementing a comprehensive cost-benefit (CBA) analysis framework, the study focuses on both the financial viability and the broader socio-economic benefits of the investment. The research investigates the potential of using green finance instruments and EU grants to support the project, analysing their role in sustainability and financial feasibility. Results indicate that while the project is not financially profitable on its own, it generates significant positive externalities. Sensitivity analyses highlight the importance of investment costs, and volume of EU funding in determining viability of the project. The findings underscore the necessity of integrating financial, social, and environmental considerations in large-scale infrastructure planning and support the use of hybrid financing models to achieve sustainable development goals.