chapter fifteen
A FRAMEWORK FOR ASSESSING THE WORTHINESS OF AN ENVIRONMENTAL PROJECT:
Cost-Benefit Analysis
learning objectivesAfter reading this chapter you will be familiar with the following: | • cost-benefit analysis as a widely used technique for environmental or, in general, social project appraisal; |
| • the methodological basis of cost-benefit analysis; |
| • the net present value criterion; |
| • the methodological link between the net present value criterion and the standard cost-benefit analysis approach; |
| • the difference between private and social appraisal of proj ects; |
| • social project appraisal and the problem of double counting of benefits and/or costs; |
| • the choice of the discount rate: private versus social discount rate; |
| • discounting and intergenerational equity; |
| • the social costs and benefits of the Endangered Species Act. |
[Cost-benefit analysis is] about the choices of investment projects. But why bother with cost-benefit analysis at all? What is wrong with deciding whether or not to undertake any specific investment, or to choose among
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Publication information:
Book title: Principles of Environmental Economics:Economics, Ecology and Public Policy.
Contributors: Ahmed M. Hussen - Author.
Publisher: Routledge.
Place of publication: London.
Publication year: 2000.
Page number: 315.
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