Evaluating the Economic Viability of Public Investments in Tourism

2019 ◽  
Vol 11 (1) ◽  
pp. 101-130
Author(s):  
Onil Banerjee ◽  
Martin Cicowiez ◽  
Adela Moreda
Keyword(s):  
Computable General Equilibrium ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Analytical Techniques ◽  
Integrated Approach ◽  
Economic Viability ◽  
Benefit Analysis ◽  
Development Bank ◽  
Public Investments ◽  
Benefits And Costs

AbstractVarious methods have been applied to evaluating the economic viability of public investments in tourism. In this article, we capitalize on the strengths of computable general equilibrium and cost-benefit analytical techniques and develop an integrated approach to evaluating public investments in tourism. We apply the approach to the evaluation of a US$6.25 million investment in tourism in Uruguay from the perspective of a multilateral development bank and a beneficiary government. These perspectives differ in a cost-benefit analysis (CBA) due to the timing of the costs incurred. The integrated approach is powerful in that it captures first and subsequent rounds of investment impacts of benefits and costs; resource diversion and constraints are accounted for, and the estimation of benefits is consistent with the welfare economics underpinnings of CBA.

scholarly journals Integrated Model of Computable General Equilibrium and Social Cost Benefit Analysis of an Indian Oil Refinery: Future Projections and Macroeconomic Effects

2018 ◽  
Vol 10 (1-2) ◽  
pp. 96-125
Author(s):  
Sumana Chaudhuri ◽  
Shovan Ray ◽  
Ganesh-Kumar
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Oil Refinery ◽  
Cge Model ◽  
Benefit Analysis ◽  
Model Framework ◽  
Financial Flows ◽  
Macroeconomic Effects

Cost benefit analysis (CBA) has long been used as a useful tool to appraise and evaluate the value of a range of investment projects to a society. Certain aspects of this method such as the appropriate discount rate is an important concern, because the choice of discount rates deeply affect the valuations of future income streams. Other aspects concerning financial flows and appropriate ‘shadow prices’ have also received considerable attention. However, when a megaproject with the character of a ‘universal intermediate’ is considered, its multiplier effects may be wide-ranging and permeate several economic and social layers and may be captured only in the aggregates. This study examines the costs and benefits of Vadinar refinery in Gujarat with a focus on this welfare dimension on society for the project. The framework explores a methodological breakthrough in CBA studies. In constituting the macroeconomic effects of expansion of the mega oil refinery, the wider economic impact (WEI) is estimated using the computable general equilibrium (CGE) model and incorporated into the CBA. This assimilation of CBA with macroeconomic externality obtained from the CGE model framework is perhaps only one of its kind in economic analysis of major infrastructure projects of any country. CBA when combined with CGE as an analytical tool can be gainfully employed to appraise or evaluate large scale projects like oil refineries. JEL Classification: B41, C51, C52, C53, C54, C55, D50, D58, D60, D61, D62, H23, H43, L71, O22, Q43

scholarly journals Developing Novel Technologies and Services for Intelligent Low Voltage Electricity Grids: Cost–Benefit Analysis and Policy Implications

Energies ◽  
2021 ◽  
Vol 15 (1) ◽  
pp. 94
Author(s):  
Alemu Moges Belay ◽  
Sanket Puranik ◽  
Ramon Gallart-Fernández ◽  
Heidi Tuiskula ◽  
Joaquim Melendez ◽  
...  
Keyword(s):  
Energy Policy ◽  
Low Voltage ◽  
Cost Benefit Analysis ◽  
Real Life ◽  
Cost Benefit ◽  
Economic Benefits ◽  
Policy Implications ◽  
Economic Viability ◽  
Benefit Analysis ◽  
The Eu

The paper presents a set of prototype smart grid technologies and services and validates the economic viability of the proposed solution using cost–benefit analysis (CBA). The study considered the EU-funded project called RESOLVD and implemented the technologies and services in a real-life pilot. the technologies and services on the EU-funded H2020. The paper focuses on the analysis of technological solutions which enhance the operational efficiency and the hosting capacity of low-voltage electricity distribution grids. The solutions provided better integration of a hybrid battery storage system, with the grid interfacing power electronics, smart gateways for the interconnection of assets at the grid edge, and sensors enhancing infrastructure observability and control. The result from the CBA indicates the economic viability of the project, high scalability, and replicability. The economic benefits were realized with the breakeven value of eight secondary substations (SS) and 16 feeders. The scenario test on the DSO’s willingness to pay for the software as a service (SaaS) revealed that the payback period can further be reduced by almost half with a higher internal rate of return (IRR) and net present value (NPV). Both the CBA and scenario tests showed RESOLVD solution can become more economically viable when deployed in largescale. Moreover, the CBA results provide evidence to the energy policy by allowing DSOs to consider both CAPEX and OPEX for better investment decisions. Further, the paper proposes an alternative business approach that shifts from grid reinforcement to service provision. The paper also discusses the research implications on energy policy and business.

An outline of a cost–benefit analysis of increased felling in Sweden

1981 ◽  
Vol 11 (3) ◽  
pp. 637-642
Author(s):  
Per-Olov Johansson
Keyword(s):  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Excess Demand ◽  
Social Benefits ◽  
Benefit Analysis ◽  
Benefits And Costs

For some years it has been claimed that there is a "shortage" of roundwood in Sweden. The purpose of this paper is to examine what is meant by this shortage and to estimate social benefits and costs of an increased supply of roundwood. The estimates indicate that it is profitable for the society to eliminate the excess demand (shortage) through an increased supply.

scholarly journals A COST BENEFIT ANALYSIS OF DELHI AIRPORT PPP PROJECT

2017 ◽  
Vol 8 (1) ◽  
pp. 13-30
Author(s):  
Sumana Chaudhuri ◽  
Ranjan Chaudhuri
Keyword(s):  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Frame Of Reference ◽  
Social Goals ◽  
Benefit Analysis ◽  
Financial Returns ◽  
Social Evaluation ◽  
International Airport ◽  
The Cost ◽  
Benefits And Costs

One of the central tenets of the cost benefit analysis (CBA) literature is the divergence between a project’s financial returns and social evaluation of what is desirable from the larger economic priorities and social goals of development. This article focuses on building a base of CBA for Delhi International Airport Limited (DIAL) as a case for Brownfield PPP Airport Project in India. The process of evaluation of the relative merits of the project in terms of the accrued benefits and costs, serves as a template for future frame of reference in similar PPP airport projects.

scholarly journals Unquantified Benefits and the Problem of Regulation under Certainty

2018 ◽  
Author(s):  
Jonathan S. Masur ◽  
Eric A. Posner
Keyword(s):  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Regulatory Agencies ◽  
Benefit Analysis ◽  
Data Set ◽  
Agency Staff ◽  
Prior Probabilities ◽  
New Information ◽  
Benefits And Costs ◽  
Bayesian Prior

102 Cornell Law Review 87 (2016)Regulatory agencies are required to perform cost-benefit analysis of major rules. However, in many cases regulators refuse to report a monetized value for the benefits of a rule that they issue. Sometimes, they report no monetized value; at other times, they report a monetized value but also state that not all benefits have been quantified. On occasion, regulators also refuse to monetize or fully monetize costs. These practices raise a puzzle. If a regulator chooses not to monetize all the benefits or all the costs, it is not doing cost-benefit analysis. If it is not doing cost-benefit analysis, what is it doing? To investigate this question, we compiled a data set consisting of all major regulations issued by agencies from 2010 to 2013. We come to three conclusions. First, there are countless examples where agencies fail to fully monetize the benefits and costs of regulations. Second, in most cases, agencies could easily monetize or partially monetize those benefits and costs. Third, even where monetization would be difficult, the agencies could and should have made explicit the implicit valuations they relied on and supported those valuations as much as possible with empirical evidence. We then proceed to explain how agencies could engage in cost-benefit analysis even when they do not have a reliable basis for estimating valuations. Even where they lack complete data, agency regulators may be able to make reasonable guesses about the harms or benefits from regulations. In many cases, these guesses will be based on the experience and latent knowledge of the agency staff. These preliminary guesses constitute Bayesian prior probabilities. While agencies should be permitted to “guess” — that is, supply a subjective prior probability — they must also be required to update their estimates as they gain new information.

scholarly journals Why Perspective Matters In Health Outcomes Research Analyses

2013 ◽  
Vol 12 (11) ◽  
pp. 1503 ◽  
Author(s):  
John M. Polimeni ◽  
Kittaya Vichansavakul ◽  
Raluca I. Iorgulescu ◽  
Ray Chandrasekara
Keyword(s):  
Health Outcomes ◽  
Societal Perspective ◽  
Outcomes Research ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Cost Utility ◽  
Healthcare Intervention ◽  
Benefit Analysis ◽  
Health Outcomes Research ◽  
Benefits And Costs

Health outcomes research typically uses cost-effectiveness or cost-utility analysis. These approaches take a narrow perspective of the individual effects, typically from the payer or the provider point-of-view. However, using these narrow perspectives misses macro-level, or societal level, benefits and costs that could significantly alter whether an intervention is considered beneficial or cost-effective. The societal perspective accounts for all the effects impacting patients, their families, the public, and government expenditures for a healthcare intervention. Such a perspective is vital for healthcare interventions for illnesses where morbidity and long absences from work are probable. A cost-benefit analysis would account for all the societal benefits and costs, allowing policy-makers to observe an outcomes analysis more closely reflective of the real impacts. This paper clearly presents why a societal perspective using cost-benefit analysis should be the preferred method of health outcomes research. An example of breast cancer interventions is used to illustrate this point.

scholarly journals The Use of Cost-Benefit Analysis in Environmental Policy

EDIS ◽  
2013 ◽  
Vol 2013 (10) ◽  
Author(s):  
Elizabeth F. Pienaar
Keyword(s):  
Decision Making ◽  
Economic Theory ◽  
Environmental Policy ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Environmental Problems ◽  
Great Care ◽  
Benefit Analysis ◽  
Wildlife Ecology ◽  
Benefits And Costs

When analyzing environmental problems, economists consider both the benefits and costs of actions. If benefits exceed costs then economic theory supports that action. For example, if the total benefits of conserving land exceed the costs then cost-benefit analysis would support conservation of the land. However, great care must be taken to accurately identify and quantify benefits and costs to determine whether an action is cost-benefit justified. Stakeholders may have an incentive to overstate costs or benefits, in order to influence decision-making. This 5-page fact sheet was written by Elizabeth F. Pienaar, and published by the UF Department of Wildlife Ecology and Conservation, September 2013. http://edis.ifas.ufl.edu/uw383

scholarly journals Techno-economics of Biochar and Biogas viability in Ghana

2020 ◽  
Vol 2 (3) ◽  
pp. 33-41
Author(s):  
Eric Fifi Ankamah ◽  
Pax Davies Dzamboe ◽  
Patience Mamle Agbedor ◽  
Godfred Tottimeh ◽  
Joseph Yao Amoah
Keyword(s):  
Net Present Value ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Economic Benefits ◽  
Payback Period ◽  
Capital Cost ◽  
Benefit Analysis ◽  
Total Capital ◽  
Welfare Change ◽  
Benefits And Costs

Biogas and voucher are technological solutions that deal with sanitation and other environmental problems. The technology for producing biogas from faeces is termed bio-toilet and production of biochar from the same human waste is by means of Sol-char toilet. The study evaluated economic benefits and costs of sol-char toilet and compared with empirical benefits and costs estimates of bio-toilet. Cost Benefit Analysis was used to judge welfare change attribution of investment into Sol Char Toilet and Bio Toilet. The pyrolysis plant was fed with 4000 tons of faeces for which Sol char toilet incurred Total capital cost of US$ 3,140,940.38, Net Present Value (NPV) of US$9,718,817.4788, Profitability Index (PI) of 4.0942381271 and 1.4 years payback period. Bio toilet values for a total of 4000 m3 (100 units of 40 m3 each) were; - Total capital cost of US$ 36,026.05, NPV of US$89,152.75, PI of 3.4746 and 3.46 years payback period. Sol char toilet is faced with high capital requirement challenges, compared with an advantage in smaller payback period and a marginal difference in PI. The study concluded that complementary roles of sol char toilet and bio toilet in the Ghanaian economy is preferred.Keywords: Biogas; Biochar; Cost Benefit Analysis; Profitability Index; Payback period.

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