The Social Cost-Benefit Analysis as Estimation Methodology: Case Study for Infrastructure Projects

2014 ◽  
Vol 11 (2) ◽  
pp. 57-76
Author(s):  
Samanta Petohleb Černeha ◽  
Maja Klun ◽  
Srečko Devjak
Keyword(s):  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Benefit Analysis ◽  
The Public ◽  
Public Investments ◽  
The Social ◽  
Net Profit ◽  
Expected Benefits ◽  
Theoretical Issues

Local public investments are financed by budget funds (state, county, local), debt funds (loans or credits, municipal obligations) and non-debt funds (users’ charges and methods and techniques of public-private partnership). In this paper some theoretical issues about cost-benefit analysis (CBA) and advantages and limitations in applying it are discussed. CBA is used in the public sector in making decisions where it is relatively easy to determine the costs, but the expected benefits can be difficult to express in monetary value. To ensure an equitable quantity of financial sources according to negative difference between inflows and outflows is one of the most important goals of the project. Based on theoretical framework about CBA, a calculation was made on social profitability of the project Public sewerage and water protection in the Region of Istria. The main conclusion of this paper is that if the project achieves the social profitability, net profit and high economic internal rate of return, it is possible to accept the realization of the project.

scholarly journals A Comparison of Cost-Benefit and Cost-Effectiveness Analysis in Practice: Divergent Policy Practices in Sweden

2017 ◽  
Vol 5 (2) ◽  
pp. 41-53 ◽  
Author(s):  
Mikael Svensson ◽  
Lars Hultkrantz
Keyword(s):  
Cost Effectiveness ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Transport Sector ◽  
Economic Evaluations ◽  
Benefit Analysis ◽  
Public Funds ◽  
The Public ◽  
Effectiveness Analysis ◽  
The Social

This paper compares the implementation of the two economic evaluation methods Cost-Effectiveness/Utility (CEA/CUA) and Cost-Benefit Analysis (CBA) as tools for allocation of national public funds in the health and transport sector in Sweden, respectively. We compare the recommended values for important economic parameters such as the social discount rate, the marginal cost of public funds, and the explicit and implicit valuation of health, and document a number of substantial and unexplained differences in implementation. Such differences are problematic considering that the increasing use of economic evaluations to guide policy decisions also has implied an overlap of application areas. We conclude with a discussion on the need of a harmonized procedure for economic evaluations in the public sector in order to reduce the risk of inefficient allocations purely due to different applications of the methods. Published: Online February 2017. In print December 2017.

scholarly journals A Social Cost-Benefit Analysis of the Vehicle Restriction Policy for Reducing Overtourism in Udo, Korea

2020 ◽  
Vol 12 (2) ◽  
pp. 612 ◽  
Author(s):  
Suah Kim ◽  
Namjo Kim
Keyword(s):  
Public Policy ◽  
Public Sector ◽  
Social Cost ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Benefit Analysis ◽  
Net Benefit ◽  
The Public ◽  
Restriction Policy ◽  
The Social

Overtourism has given rise to conflict among various stakeholders. Accordingly, to control overtourism, the public sector has started to implement policies. Recently, Udo off Jeju Island in South Korea has begun experiencing overtourism; to prevent the situation from deteriorating, the public sector implemented a vehicle restriction policy. This study used a cost-benefit analysis framework to assess the social costs and benefits of the public policy to control overtourism in Udo. Through interviews and relevant data and documents, this study classified analysis items related to the policy that could be either a cost or benefit to different stakeholders. The social cost-benefit analysis showed that the net benefit increases, the longer the policy continues, thus ensuring it is adequate and feasible to implement the policy. An effective management public policy for the sustainability of the region’s tourism should always be promoted.

The Social Cost of Carbon

2021 ◽  
pp. 182-229
Author(s):  
Joseph Heath
Keyword(s):  
Public Sector ◽  
Policy Evaluation ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Benefit Analysis ◽  
Social Cost Of Carbon ◽  
Public Philosophy ◽  
The Public ◽  
The Past ◽  
The Social

The past few decades have seen an expansion in the use of cost-benefit analysis as a tool for policy evaluation in the public sector. This slow, steady creep has been a source of consternation to many philosophers and political theorists, who are inclined to view cost-benefit analysis as simply a variant of utilitarianism, and consider utilitarianism to be completely unacceptable as a public philosophy. This chapter attempts to show that this impression is misleading. Despite the fact that when construed narrowly, cost-benefit analysis does look a lot like utilitarianism, when seen in its broader context, in the way that it is applied, and the type of problems to which it is applied, it is better understood as an attempt by the state to avoid taking sides with respect to various controversial conceptions of the good.

scholarly journals FEATURES OF MODERN STAGES OF ANALYSIS OF BENEFITS AND COSTS

2021 ◽  
Author(s):  
Tetyana Kibuk
Keyword(s):  
Decision Making ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Benefit Analysis ◽  
Present Value ◽  
Public Project ◽  
The Public ◽  
The Social ◽  
The Cost ◽  
Benefits And Costs

The article is devoted to the study of one of the most relevant and widely used tools of the modern decision-making process at the national and international levels – cost-benefit analysis (CBA). The article defines the purpose of the cost-benefit analysis. Three approaches to the selection of CBA stages are analyzed, among which there are three, from five to seven and ten stages. Their advantages and disadvantages are highlighted. The modern stages of the analysis of benefits and costs are systematized, namely: determining the level of analysis and its purpose; identification of alternatives to the public project; identification of the list of benefits and costs of the project; valuation in monetary terms of certain benefits and costs; establishing project evaluation criteria; discounting benefits and costs to obtain the present value of the project; determination of the net present value of social project options; analysis of the sensitivity of the social project; analysis of the distribution of existing benefits from the public project and selection one project among several alternative ones for implementation. The figures of the choice of existing alternatives of the public project are analyzed. Existing types of project costs are identified, including direct, indirect, tangible, intangible, opportunity and real costs. The list of benefits investigated by the analysis is determined, which include: monetary, non-monetary and intangible benefits. The difference between monetary valuation of project benefits and costs at shadow and market prices is investigated. The most common selection criteria in the modern project decision-making process are analyzed. The peculiarities of the formation of the social discount rate are highlighted. The features of sensitivity analysis and the purpose for its implementation are determined. Existing types of uncertainty and ways to overcome them are summarized, namely knowledge uncertainty, policy uncertainty and future uncertainty. The specifics of decision making in the cost-benefit analysis are studied. Further directions of research of problematic questions of the cost-benefit analysis in modern economy are identified.

scholarly journals The ALARP Principle in the Cost-Benefit Analysis for the Acceptability of Investment Risk

2018 ◽  
Vol 10 (12) ◽  
pp. 4668 ◽  
Author(s):  
Antonio Nesticò ◽  
Shuquan He ◽  
Gianluigi De Mare ◽  
Renato Benintendi ◽  
Gabriella Maselli
Keyword(s):  
Cost Benefit Analysis ◽  
Risk Mitigation ◽  
Cost Benefit ◽  
Economic Evaluations ◽  
Investment Risk ◽  
Benefit Analysis ◽  
Mitigation Design ◽  
The Cost

The process of allocating financial resources is extremely complex—both because the selection of investments depends on multiple, and interrelated, variables, and constraints that limit the eligibility domain of the solutions, and because the feasibility of projects is influenced by risk factors. In this sense, it is essential to develop economic evaluations on a probabilistic basis. Nevertheless, for the civil engineering sector, the literature emphasizes the centrality of risk management, in order to establish interventions for risk mitigation. On the other hand, few methodologies are available to systematically compare ante and post mitigation design risk, along with the verification of the economic convenience of these actions. The aim of the paper is to demonstrate how these limits can be at least partially overcome by integrating, in the traditional Cost-Benefit Analysis schemes, the As Low as Reasonably Practicable (ALARP) logic. According to it, the risk is tolerable only if it is impossible to reduce it further or if the costs to mitigate it are disproportionate to the benefits obtainable. The research outlines the phases of an innovative protocol for managing investment risks. On the basis of a case study dealing with a project for the recovery and transformation of an ancient medieval village into a widespread-hotel, the novelty of the model consists of the characterization of acceptability and tolerability thresholds of the investment risk, as well as its ability to guarantee the triangular balance between risks, costs and benefits deriving from mitigation options.

Allocation of Environmental Remediation Funds Using Economic Risk-Cost-Benefit Analysis: A Case Study

1996 ◽  
Vol 16 (4) ◽  
pp. 95-105 ◽  
Author(s):  
Bruce R. James ◽  
Dale D. Huff ◽  
John R. Trabalka ◽  
Richard H. Ketelle ◽  
Craig T. Rightmire
Keyword(s):  
Environmental Remediation ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Benefit Analysis ◽  
Economic Risk ◽  
Risk Cost
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