Benefits and Costs of Sea Lamprey (Petromyzon marinus) Control in the Great Lakes: Some Preliminary Results

1980 ◽  
Vol 37 (11) ◽  
pp. 2169-2174 ◽  
Author(s):  
Daniel R. Talhelm ◽  
Richard C. Bishop
Keyword(s):  
Cost Analysis ◽  
Great Lakes ◽  
Petromyzon Marinus ◽  
Sea Lamprey ◽  
Commercial Fishing ◽  
Benefit Cost Analysis ◽  
Fishery Economics ◽  
Benefit Cost ◽  
Benefits And Costs ◽  
Economic Studies

While economic studies of the Great Lakes fisheries are still in their infancy, evidence is accumulating which suggests that efforts to rehabilitate the salmonid fisheries of the Great Lakes, including sea lamprey control, are paying rich dividends; benefits may exceed costs by half a billion dollars each year. Sportfishing values are much greater than commercial fishing values, so anglers benefit most from sea lamprey control. Expanding rehabilitation efforts in ways that will enhance angler success may also be economically sound. PCB levels in Great Lakes salmonids may be lowering the value of angling; 30% of anglers surveyed report eating less of their catch as a result of warnings. However, 93% oppose discontinuing stocking because of the PCB problem. The effects of possible energy shortages are difficult to predict, and may not necessarily reduce Great Lakes fisheries values.Key words: sea lamprey, benefit–cost analysis, fishery economics, recreation economics

Accounting for the Distribution of Benefits and Costs in Benefit–Cost Analysis

2020 ◽  
pp. 1-21
Author(s):  
James K. Hammitt
Keyword(s):  
Cost Analysis ◽  
Decision Makers ◽  
Policy Choice ◽  
Alternative Evaluation ◽  
Benefit Cost Analysis ◽  
Transfer Programs ◽  
Net Benefits ◽  
Benefit Cost ◽  
Benefits And Costs

Abstract Benefit–cost analysis (BCA) is often viewed as measuring the efficiency of a policy independent of the distribution of its consequences. The role of distributional effects on policy choice is disputed; either: (a) the policy that maximizes net benefits should be selected and distributional concerns should be addressed through other measures, such as tax and transfer programs or (b) BCA should be supplemented with distributional analysis and decision-makers should weigh efficiency and distribution in policy choice. The separation of efficiency and distribution is misleading. The measure of efficiency depends on the numéraire chosen for the analysis, whether monetary values or some other good (unless individuals have the same rates of substitution between them). The choice of numéraire is not neutral; it can affect the ranking of policies by calculated net benefits. Alternative evaluation methods, such as BCA using a different numéraire, weighted BCA, or a social welfare function (SWF), may better integrate concerns about distribution and efficiency. The most appropriate numéraire, distributional weights, or SWFs cannot be measured or statistically estimated; it is a normative choice.

scholarly journals A retrospective assessment of the costs of EPA’s 1998 Locomotive Emission Standards

2014 ◽  
Vol 5 (2) ◽  
pp. 285-314 ◽  
Author(s):  
Elizabeth Kopits
Keyword(s):  
Cost Analysis ◽  
Total Cost ◽  
Benefit Cost Analysis ◽  
Retrospective Assessment ◽  
Emission Standards ◽  
Ex Post ◽  
Data Limitations ◽  
The Cost ◽  
Benefit Cost ◽  
Benefits And Costs

Abstract:While the need to update EPA benefit-cost analysis to reflect the most recent science is broadly acknowledged, little work has been done examining how well ex ante BCAs estimate the actual benefits and costs of regulations. This paper adds to the existing literature on ex post cost analyses by examining EPA’s analysis of the 1998 Locomotive Emission Standards. Due to data limitations and minimal ability to construct a reasonable counterfactual for each component of the cost analysis, the assessment relies mainly on industry expert opinion, augmented with ex post information from publicly available data sources when possible. The paper finds that the total cost of bringing line-haul locomotives into compliance with the 1998 Locomotive Emission Standards rule remains uncertain. Even though the initial per-unit locomotive compliance costs were higher than predicted by EPA, total costs also depend on the number of locomotives affected by the regulation. Over 2000–2009, the number of newly built line-haul locomotives was higher but the number of remanufactured line-haul locomotives was lower than EPA’s estimate.

scholarly journals Integrated Undergraduate Management Education: An Informal Benefit / Cost Analysis

2011 ◽  
Vol 1 (3) ◽  
pp. 57
Author(s):  
William L. Casey, Jr.
Keyword(s):  
Cost Analysis ◽  
Management Education ◽  
Assessment Data ◽  
Benefit Cost Analysis ◽  
Core Program ◽  
Benefit Cost ◽  
Benefits And Costs

This paper seeks to contribute to the literature of management education by evaluating assessment data on Babson Colleges integrated undergraduate management core program (IMC). Transitions from functionally isolated curricula to more integrated alternatives involve both benefits and costs, accruing to faculty, students and sponsoring institutions. The relative benefits and cost of the Babson program are weighted based on recent assessment initiatives at the college.

The Benefits and Costs of Slot Machine Gambling

2013 ◽  
pp. 636-669
Author(s):  
Scott Farrow ◽  
Chava Carter
Keyword(s):  
Cost Analysis ◽  
Empirical Studies ◽  
Slot Machine ◽  
Additional Research ◽  
Slot Machines ◽  
Economic Welfare ◽  
Benefit Cost Analysis ◽  
Benefit Cost ◽  
Benefits And Costs ◽  
Machine Gambling

This chapter reviews the basic economic welfare criteria for slot machines, as implemented via benefit-cost analysis. More specifically, it provides a conceptualization of the benefits and costs of slot machines, as well as a scorecard for key elements of a benefit-cost analysis. The chapter also presents several illustrative empirical studies and discusses areas for additional research.

scholarly journals Behavioral economics and policy evaluation

2014 ◽  
Vol 5 (1) ◽  
pp. 89-109 ◽  
Author(s):  
Timothy J. Brennan
Keyword(s):  
Cost Analysis ◽  
Willingness To Pay ◽  
Behavioral Economics ◽  
Policy Evaluation ◽  
Direct Democracy ◽  
Cognitive Biases ◽  
Policy Issues ◽  
Benefit Cost Analysis ◽  
Benefit Cost ◽  
Benefits And Costs

Abstract:Behavioral economics posits a number of cognitive biases and limitations, which raises questions as to whether revealed willingness to pay equals true willingness to pay. If so, benefit-cost analysis, with a number of methodological advantages, would need to be replaced. Prior analyses of the issue by Sunstein, Sugden, and Bernheim and Rangel fail to offer guidance that would avoid substituting centralized judgments for decentralized information on benefits and costs. Alternatives including using post-implementation valuations, libertarian paternalism, and direct democracy on policy issues also have conceptual or practical limitations. A tentative suggestion is democratic delegation, somewhat appealing because it is already applied to cope with bounded rationality and non-efficiency values. Viewing benefit-cost analysis as a market analogue, and restricting the domain of behavioral economics to uninformed consumers, may be useful guides. The most important guidance may be to require very strong evidence of substantial choice failure before abandoning benefit-cost analysis.

Measuring Nontraditional Benefits and Costs of Inland Navigation

2005 ◽  
Vol 1909 (1) ◽  
pp. 47-53
Author(s):  
Anne Sudar
Keyword(s):  
Cost Analysis ◽  
Standard Procedure ◽  
Air Emissions ◽  
Development Projects ◽  
Water Resource Development ◽  
Benefit Cost Analysis ◽  
Inland Navigation ◽  
Wide Range ◽  
Benefit Cost ◽  
Benefits And Costs

The evaluation of navigation projects has evolved from a standard procedure done strictly by engineers and economists to a process that involves a wide range of stakeholders. Not surprisingly, these diverse stakeholders have different views regarding what should count in the benefit–cost analysis of water resource development projects and how the effects are to be economically valued. The methodologies that are described have been used to measure and monetize some of the externalities of inland navigation, the benefits and costs of which have not traditionally been included in benefit–cost ratios. The emphasis is the benefits (lower air emissions) associated with freight transport via water compared with those of other modes, particularly truck.

Bore drain replacement in south-west Queensland: benefits and costs for land managers

2002 ◽  
Vol 24 (2) ◽  
pp. 185 ◽  
Author(s):  
Lachlan Pegler ◽  
Renée Moore ◽  
Delphine Bentley
Keyword(s):  
Cost Analysis ◽  
Cost Ratio ◽  
Financial Benefit ◽  
Benefit Cost Analysis ◽  
South West ◽  
Resource Condition ◽  
Land Systems ◽  
The Mean ◽  
Benefit Cost ◽  
Benefits And Costs

The Bore Drain Replacement Project (BDRP) in south-west Queensland provided government subsidies to land managers to convert water distribution systems from open earth bore drains to piped water systems, thereby addressing Great Artesian Basin (GAB) sustainability issues. To fully evaluate the benefits and costs of the project for land managers, both a financial benefit-cost analysis and a study of land managers' perceptions were conducted. The main benefit for land managers from bore drain replacement, was a substantial decrease in operating costs (mean decrease of 87%). Results of the financial benefit-cost analysis showed that the mean private benefit to total cost ratio (BP:CT) (0.86, at a real discount rate of 6%, over 10 years) was less than the break-even value of unity . The mean BP:CT (0.6) for land managers with less than 50% of bore drains on mulga (Acacia aneura F. Muell ex. Benth) land systems was also less than unity, while those land managers with bore drains predominately on mulga land systems had a mean BP:CT that only marginally exceeded unity (1.1). With a government subsidy (study mean 72%), the private benefits to private cost ratio (BP:CP), averaged across all land managers in the study, was 2.25. The break-even subsidy level for land managers was calculated as 17% of the total capital cost. Land managers perceived a number of important benefits from bore drain replacement that were not included in the financial benefit-cost analysis, due to difficulty quantifying values. These included benefits from changes in grazing management, increased time-savings and an improved quality of life. In general, there were no changes documented in animal productivity, native and feral animal populations, or carrying capacity in the 18 months since piping, although potential changes for the future were identified. Some land managers noted improvements to natural resource condition near bore drains after closure, while most expected little deterioration in natural resource condition near the new water points. Recommendations are made for ongoing funding support for bore drain replacement, including further monitoring and evaluation, with emphasis on conducting an economic public and private benefit-cost analysis. Land managers' capacity to pay, willingness to adopt change and public benefits of the project should be considered in cost sharing arrangements and determination of future government subsidy levels.

Implications of the WTP–WTA Disparity for Benefit–Cost Analysis

2015 ◽  
Vol 6 (1) ◽  
pp. 207-216 ◽  
Author(s):  
James K. Hammitt
Keyword(s):  
Economic Theory ◽  
Cost Analysis ◽  
Fundamental Question ◽  
Willingness To Accept ◽  
Benefit Cost Analysis ◽  
The Difference ◽  
The Cost ◽  
Benefit Cost ◽  
Benefits And Costs ◽  
Willingness To Accept Compensation

Differences between estimated willingness to accept compensation (WTA) and willingness to pay (WTP) that are larger than can be explained by standard economic theory raise questions about which measures should be used for benefit–cost analysis (BCA). These differences do not create a new problem but accentuate an existing one: the fact that the Kaldor–Hicks compensation test is ambiguous when its two components conflict. This conflict is more likely when the difference between WTA and WTP measures of a change is large. In many cases, the same individuals receive benefits and incur costs from a policy change and their preferences for the policy cannot depend on whether they ask whether their WTP for the benefit exceeds the cost they will incur or their WTA to forgo the benefit exceeds the cost they will save. In cases where benefits and costs are incurred by different people, it seems more useful to evaluate the fundamental question – whether the benefits to some justify the harms to others – than to obscure this question through a technical debate about valuation measures.

scholarly journals Benefit-Cost Analysis in Policing Research: Assessing Crime-Control Benefits of Proactive Enforcement Practices

2017 ◽  
Vol 8 (3) ◽  
pp. 339-347 ◽  
Author(s):  
Amanda Geller
Keyword(s):  
Cost Analysis ◽  
Crime Control ◽  
Crime Rates ◽  
Benefit Cost Analysis ◽  
Proactive Policing ◽  
Outcome Differences ◽  
Benefit Cost ◽  
Benefits And Costs ◽  
Police Practices

The police are widely recognized as an important deterrent of crime, with investments in policing broadly associated with lower crime rates. Much less is known about how investments in policing contribute to crime reductions, or the relative merits and risks of specific activities in which officers engage, leaving policing as an area in which benefit-cost analysis methods stand to make a significant substantive contribution. However, the implementation of these methods involves challenges related to measuring both the quantity and quality of policing involved in a given dosage of policing, as well as the causal effects of police practices on crime. This essay lays out several of the challenges inherent in understanding the benefits and costs of policing practices, with a specific eye toward practices commonly known as “proactive policing” practices, and their effects on crime rates. I lay out potential strategies for resolving these challenges, which focus largely on identifying exogenous discontinuities in policing practices that can be used to assess outcome differences. Thorough assessment of policing practices should apply as many of these strategies as possible, in order to understand how robust or sensitive substantive conclusions may be to strategies used.

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