Montetary evaluation

Montetary evaluation - Integrating Environmental Values in...

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mgb-uep6 Integrating Environmental Values in Societal Decision-Making Monetary Valuation of the Environment – Part II
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mgb-uep6 Cost Benefit Analysis (CBA) Pre-eminent Analytical framework for evaluating public projects -- Origins in 1930s (Water resource projects) Systematic and comprehensive enumeration of all impacts, for alternatives, to society, over time positive and negative tangible and intangible in monetary terms rule for choosing among alternatives – maximum net benefit Descriptive and Prescriptive Considers Impacts for Society as a whole Ex ante Economic efficiency – best use of societal resources
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mgb-uep6 Cost Benefit Analysis Assumptions Social welfare -- well-being of individuals; Individual preferences -- basis of societal decision making WTP Market price as a legitimate measure of preferences and value – graph Value of policies to society is aggregate WTP market price Applicable even when market prices are not available Maximizing net benefit guarantees resources put to best use, AND winners can potentially compensate losers
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mgb-uep6 Cost Benefit Analysis
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Montetary evaluation - Integrating Environmental Values in...

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