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.

A Retrospective Benefit-Cost Analysis on the Elwha River Restoration Project

2019 ◽  
Vol 11 (1) ◽  
pp. 76-100
Author(s):  
Allen Bellas ◽  
Lea Kosnik
Keyword(s):  
Cost Analysis ◽  
River Restoration ◽  
River Ecosystem ◽  
Elwha River ◽  
Benefit Cost Analysis ◽  
Current State ◽  
Ex Post ◽  
Original Analysis ◽  
The Cost ◽  
Benefit Cost

AbstractIn 1992, Congress passed The Elwha River Ecosystem and Fisheries Restoration Act with the goal of “full restoration of The Elwha River Ecosystem and native anadromous fisheries.” As part of that act, the federal government was required to produce a benefit-cost analysis on dam removal of the Elwha and Glines Canyon dams, which was published in 1994. This article revisits that initial 1994 benefit-cost analysis; background on its methods and assumptions is given, comparisons are made to current state-of-the-art techniques in benefit-cost analysis, and an ex post benefit-cost analysis of the project is conducted for comparison purposes. We find that the cost and scope of the project exceeded original expectations, the cost of the foregone electricity generation was less than expected, and that anticipated recreational and fisheries benefits were both delayed, and lower, than expected. Furthermore, issues such as the value of hatchery-spawned versus wild anadromous fish seem not to have been anticipated in the original analysis, highlighting the fact that in doing an ex ante analysis, researchers must expect that unexpected factors may influence the ex post results of any project.

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.

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 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.

Environmental Constraints on Hydropower: An Ex Post Benefit-Cost Analysis of Dam Relicensing in Michigan

2006 ◽  
Vol 82 (3) ◽  
pp. 384-403 ◽  
Author(s):  
M. J. Kotchen ◽  
M. R. Moore ◽  
F. Lupi ◽  
E. S. Rutherford
Keyword(s):  
Cost Analysis ◽  
Environmental Constraints ◽  
Benefit Cost Analysis ◽  
Ex Post ◽  
Benefit Cost

Benefit-Cost Analysis in the States: Status, Impact, and Challenges

2015 ◽  
Vol 6 (2) ◽  
pp. 369-399 ◽  
Author(s):  
Darcy White ◽  
Gary VanLandingham
Keyword(s):  
Public Policy ◽  
Cost Analysis ◽  
District Of Columbia ◽  
Policy Research ◽  
Limited Information ◽  
Benefit Cost Analysis ◽  
Policy Choices ◽  
Data Limitations ◽  
Technical Features ◽  
Benefit Cost

Although there is growing interest in applying benefit-cost analysis (BCA) to public policy questions, limited information is available on states’ use of this methodology. The nationwide assessment presented here begins to fill that void and finds that states and the District of Columbia are increasingly conducting BCAs and using the results to inform their policy choices. The numbers of reports released by the states and statutory mandates to conduct these studies increased substantially between 2008 and 2011. An analysis of the studies released by states shows that most lack some recommended technical features of rigorous BCA, but the reports are having a reported impact on state policy and budget decisions. Like other forms of policy research, BCA faces challenges including resource and data limitations, timing problems, and gaining policymaker buy-in for the approach and findings.

scholarly journals The Potential Economic Impact of Biotechnology and Related Research on the Forest Sector

1989 ◽  
Vol 65 (3) ◽  
pp. 185-189 ◽  
Author(s):  
F. L. C. Reed
Keyword(s):  
Cost Analysis ◽  
Financial Support ◽  
Forest Community ◽  
Forest Sector ◽  
Central Theme ◽  
Manufacturing Plants ◽  
Related Research ◽  
Benefit Cost Analysis ◽  
The Cost ◽  
Benefit Cost

The Canadian forest sector is at a critical juncture in maintaining its competitive position internationally. One reason is the difficulty that we are experiencing in holding the line on the costs of timber and its processing. The expenditure on silviculture alone is often in the range of 10-20% of the cost of delivering roundwood to manufacturing plants. The entire forest community is counting of forestry science, and especially biotechnology, to enhance industry viability and provide solutions to problems with environmental quality. However, the funding of forestry R&D has always been handicapped by our inability to argue persuasively for science budgets. The central theme of this paper is that the application of biotechnology and other science to forestry certainly does pay. A synthesis of traditional and newer approaches to benefit-cost analysis is recommended to assist science managers in making their case for financial support.

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.

VP36 Benefit Cost Analysis Of Electronic Claims Processing System In Ghana

2018 ◽  
Vol 34 (S1) ◽  
pp. 168-169
Author(s):  
Rebecca Addo ◽  
Justice Nonvignon ◽  
Huihui Wang
Keyword(s):  
Health Insurance ◽  
Cost Analysis ◽  
Health System ◽  
Decision Makers ◽  
Total Cost ◽  
Benefit Cost Analysis ◽  
Provider Payment ◽  
Study Population ◽  
Benefit Cost ◽  
Electronic Processing

Introduction:Since the inception of the Ghana National Health Insurance Scheme (NHIS), it has been pursuing a number of provider payment mechanisms that could not only control the continuous escalating costs of claims payout, but also facilitate the claims processing time. In lieu of this, electronic processing of claims (E-claims) was introduced in 2013 as part of the World Bank supported Health Insurance project that sought to facilitate the financial and operational management of the NHIS. It was piloted in 29 health facilities up to March 2014. They reported cost savings made by the NHIS using E-claims, creating interest in scaling it up. However, the comparative effectiveness and cost effectiveness of E-claims to the health system compared to manual claims processing is unknown. Therefore, to provide decision makers with the appropriate information to choose between manual and E-claims processing, this study sought to evaluate the cost-benefit of E-claims.Methods:A benefit-cost analysis was used to evaluate the efficiency of E-claims from the perspective of the health system. Health providers and the purchaser (NHIS claims processing center) were the study population. Resource use and costs were obtained from the study population. The volumes and values of claims reimbursed and the claims rejection rate were used as the benefits of claims processing. The incremental benefit-cost ratio (IBCR) was estimated for the provider, purchaser and the entire health system. Analysis was conducted in Microsoft Excel.Results:The total cost per claim for providers were USD 1,177.04 and USD 1,240.65 for E-claims and paper claims respectively. The total cost per E-claims and paper claims for the purchaser were 592.17 and 502.19 respectively. Total benefit per E-claim and paper claim processing for the providers were USD 8,562.90 and USD 8,888.37 respectively while that for the purchaser was USD 11,037.62 and USD 8,737.60 respectively. Processing claims electronically led to incremental gains by both providers and purchasers. Providers gained additional USD 2008.51 while the purchaser gained USD 2,300.02. The IBCR was estimated at −19.75, 25.56 and 5.10 for all providers, purchaser and both providers and purchaser of the health system respectively. Thus the IBCR was less than 1for the providers and more than 1 for purchaser and both purchaser and providers.Conclusions:The electronic processing of claims is more efficient compared to manual processing in the Ghana NHIS. This provides decision makers with evidence for scaling it up to all the facilities in Ghana.

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