The Use of Cost-Benefit Analysis for Evaluating Efficiency of Public Investment Projects (The Case of Sochi-2014 Winter Olympic Games)

2011 ◽  
pp. 57-78
Author(s):  
I. Pilipenko
Keyword(s):  
Net Present Value ◽  
Olympic Games ◽  
Cost Benefit Analysis ◽  
Public Investment ◽  
Cost Benefit ◽  
Investment Efficiency ◽  
Benefit Analysis ◽  
Step Method ◽  
Investment Projects ◽  
The Usa

The paper analyzes shortcomings of economic impact studies based mainly on input- output models that are often employed in Russia as well as abroad. Using studies about sport events in the USA and Olympic Games that took place during the last 30 years we reveal advantages of the cost-benefit analysis approach in obtaining unbiased assessments of public investments efficiency; the step-by-step method of cost-benefit analysis is presented in the paper as well. We employ the project of Sochi-2014 Winter Olympic and Paralympic Games in Russia to evaluate its efficiency using cost-benefit analysis for five accounts (areas of impact), namely government, households, environment, economic development, and social development, and calculate the net present value of the project taking into account its possible alternatives. In conclusion we suggest several policy directions that would enhance public investment efficiency within the Sochi-2014 Olympics.

scholarly journals Railway infrastructures sustainable interventions: Proposal for a Cost-Benefit Analysis application

2018 ◽  
Vol 211 ◽  
pp. 12002
Author(s):  
Paula Couto ◽  
Filipa Salvado ◽  
Maria João falcão Silva
Keyword(s):  
Cost Benefit Analysis ◽  
Public Investment ◽  
Investment Project ◽  
Cost Benefit ◽  
Point Of View ◽  
Benefit Analysis ◽  
Costs And Benefits ◽  
Investment Projects ◽  
Analysis Application ◽  
Sustainable Projects

The decision to intervene in Railway Infrastructures (RI) in a sustainable way is complex, because the involved costs require different assessment levels, given their relevance to all stakeholders in decision-making, and are not always easily quantifiable. Following recent decisions of the EU, it is urgent to carry studies to support RI sustainable interventions. In this context, the use of methodologies based on Cost-Benefit Analysis (CBA) contributes positively to base decisions on RI investment projects. CBA is a methodology to assess the net economic impact of a public investment project and can be used for a variety of interventions. CBA is based on the conversion to monetary values of all costs and benefits, even when they are intangible. The purpose of a CBA is to evaluate if a project is feasible from the point of view of social welfare through the algebraic sum of their costs and benefits discounted over time. This paper presents a framework for the assessment of RI sustainable projects based on CBA, which integrates the development of community policies and financial instruments. It aims to provide technical support and contribute to the reflection about co-financing rates modulation.

scholarly journals Economic Analysis of the Use of VCS2000 for Pork Carcass Meat Yield Grading in Korea

Animals ◽  
2021 ◽  
Vol 11 (5) ◽  
pp. 1297
Author(s):  
Juntae Kim ◽  
Hyo-Dong Han ◽  
Wang Yeol Lee ◽  
Collins Wakholi ◽  
Jayoung Lee ◽  
...  
Keyword(s):  
Economic Analysis ◽  
Net Present Value ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Feed Consumption ◽  
Cost Ratio ◽  
Benefit Analysis ◽  
Labor Costs ◽  
Meat Yield ◽  
The Cost

Currently, the pork industry is incorporating in-line automation with the aim of increasing the slaughtered pork carcass throughput while monitoring quality and safety. In Korea, 21 parameters (such as back-fat thickness and carcass weight) are used for quality grading of pork carcasses. Recently, the VCS2000 system—an automatic meat yield grading machine system—was introduced to enhance grading efficiency and therefore increase pork carcass production. The VCS2000 system is able to predict pork carcass yield based on image analysis. This study also conducted an economic analysis of the system using a cost—benefit analysis. The subsection items of the cost-benefit analysis considered were net present value (NPV), internal rate of return (IRR), and benefit/cost ratio (BC ratio), and each method was verified through sensitivity analysis. For our analysis, the benefits were grouped into three categories: the benefits of reducing labor costs, the benefits of improving meat yield production, and the benefits of reducing pig feed consumption through optimization. The cost-benefit analysis of the system resulted in an NPV of approximately 615.6 million Korean won, an IRR of 13.52%, and a B/C ratio of 1.65.

scholarly journals Guide to cost benefit analysis of community-based interventions

2014 ◽  
Vol 3 (5) ◽  
pp. 47
Author(s):  
Sanni Yaya ◽  
Xiaonan Li
Keyword(s):  
Net Present Value ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Cost Ratio ◽  
Benefit Analysis ◽  
Costs And Benefits ◽  
Community Based Interventions ◽  
Community Based ◽  
Benefit Cost Ratio ◽  
The Cost

This paper offers a general guide on how to conduct a proper economic analysis for community-based intervention projects. Identification and quantification of costs and benefits are the focus of the cost benefit analysis. We categorize costs and benefits from human and physical perspectives and pay special attention to the measures of saving human lives accompanied by the proposed calculation methods. We recommend net present value and benefit-cost ratio as the criteria to assess projects and highlight some challenges remaining in the analysis.

Prices and clinical benefit of cancer drugs in the USA and Europe: a cost–benefit analysis

2020 ◽  
Vol 21 (5) ◽  
pp. 664-670 ◽  
Author(s):  
Kerstin N Vokinger ◽  
Thomas J Hwang ◽  
Thomas Grischott ◽  
Sophie Reichert ◽  
Ariadna Tibau ◽  
...  
Keyword(s):  
Clinical Benefit ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Benefit Analysis ◽  
Cancer Drugs ◽  
The Usa

Environmental costs and their impact on the net present value of a hydro-electric project in Kerala, India

2003 ◽  
Vol 8 (2) ◽  
pp. 311-330 ◽  
Author(s):  
V. Santhakumar ◽  
Achin Chakraborty
Keyword(s):  
Net Present Value ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Environmental Costs ◽  
Benefit Analysis ◽  
Costs And Benefits ◽  
Net Benefit ◽  
Pulp Industry ◽  
The Social ◽  
The Cost

This paper presents the operational procedures involved in incorporating the environmental costs in the cost–benefit analysis of a hydro-electric project. The proposed project, if implemented, would result in the loss of 2,800 hectares of tropical forests and dislocation of two settlements of about 200 families who are currently dependent on the forests for their livelihood. The forests are mainly used for extracting reed – a material used both by traditional artisans and the paper-pulp industry. The potential environmental costs and benefits of the project are identified and approximate estimates of some of these costs are made for items such as carbon sequestration, bio-diversity, and so on, based on similar estimates made elsewhere. These estimated environmental costs are incorporated into the analysis, and the hypothetical estimate of the non-use value, which would make the project's net benefit zero, is estimated under different discount rates. The analysis brings into sharp focus some crucial factors that have a direct bearing on the social trade-off involved in the project choice.

Future Generations and the Social Rate of Discount

1973 ◽  
Vol 5 (5) ◽  
pp. 611-617 ◽  
Author(s):  
C A Nash
Keyword(s):  
Cost Benefit Analysis ◽  
Public Investment ◽  
Cost Benefit ◽  
Real Income ◽  
Future Generations ◽  
Benefit Analysis ◽  
Investment Appraisal ◽  
Social Rate ◽  
Irreversible Effects

This paper reexamines the case for discounting for time in public investment appraisal where long-term or irreversible effects on future generations are involved. It is concluded that—while, in the short-term, considerations of equity reinforce the commonly advocated case for discounting for time—in evaluating long-term or irreversible effects, current discounting procedures require the doubtful assumption of perpetual exponential growth of real income. However, if discounting were abandoned, use of the standard cost—benefit-analysis framework would require the forecasting of shadow prices for all future dates, unless an arbitrary time horizon is adopted. Thus cost—benefit analysis does not appear to be a satisfactory method for evaluating effects on future generations.

scholarly journals Analisis Sistem Pengadaan Kendaraan Dinas Operasional Pemerintah Melalui Sistem Pembelian dan Sewa (Studi Pada Politeknik Negeri Padang)

2020 ◽  
Vol 15 (1) ◽  
pp. 91-101
Author(s):  
Elfitri Santi ◽  
Afridian Wirahadi ◽  
Arif Wahyu Saputra ◽  
Rasyidah Mustika ◽  
Ferdawati
Keyword(s):  
Net Present Value ◽  
Cost Benefit Analysis ◽  
Research Result ◽  
Cost Benefit ◽  
Benefit Analysis ◽  
Present Value ◽  
Analysis Instrument ◽  
The Cost ◽  
Value Of Money

The official goverment vehicles supply demand the goverment allocate fund in carefully and precise based on the needs. The value of money analysis between buy, rent, and leasing to supplying the official vehicles in Polytechnic State’s of Padang. intent on calculating, analyze, and comparing which alternative that make more value of money between the provisions system of buying, renting and leasing. Methods this Research is Qualitative and The analysis instrument that use in this research is Net Present Value Method also calculating the cost benefit analysis . The research examine 3 type or merk that represent the officeholder vehicles, such as Toyota Hiace Commuter, Kijang Innova V A/T, dan Avanza Veloz. The result of this research indicated that officeholder vehicles supplying system through the buying system is has more benefit that follow by the leasing system and the renting system. This research result could be a reference for Goverment in choosing supplying system of officeholder vehicles in Padang State’s Polytechnic.

scholarly journals THE FINANCIAL IMPLICATIONS OF BODABODA TRANSPORT BUSINESS AMONG YOUTHS IN ARUSHA- COST BENEFIT ANALYSIS

2020 ◽  
Vol 7 (4) ◽  
pp. 177-185
Author(s):  
Kepha Luvinga ◽  
Simon Kilasara
Keyword(s):  
Net Present Value ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Cost Ratio ◽  
Benefit Analysis ◽  
Present Value ◽  
Benefit Cost Ratio ◽  
Transport Services ◽  
Arusha Region ◽  
Benefit Cost

ABSTRACT This study reports upon the findings on the cost and profitability of bodaboda transport business among youths in Arusha. As used in this study, the term bodaboda applies for a two wheeled motorized taxi which provides ‘for hire’ type transport services to passengers and goods. The bodaboda have became an employment opportunity to many unskilled urban labour and further job opportunity to informal sector workers who wish to switch jobs in search of higher rewards. The questionnaires were used to collect data to 90 respondents from two districts of Arusha region namely Arusha and Meru district. Data analysis was done using descriptive statistics and cost benefit analysis. The finding from the study indicates that the bodaboda transport business is profitable with the benefit cost ratio (BCR) of 2.8 and the net present value (NPV) of 8,494,920Tsh for five years project duration. By having the benefit cost ratio and the net present value greater than 1, the bodaboda business is profitable and worth being undertaken. Based on the findings from the study it is recommended that the government authorities and all key stakeholders should regulate, and support the implementation of bodaboda bussiness through formalization of bodaboda associations, assurance of financial supports and capacity building to youths who engage or willing to engage in the business.

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