Problems and Challenges in Application Cost-Benefit Analysis– Case Study of Resen Municipality

PurposeThe paper aims to present an approach to cost-benefit analysis with stochastic data. Determining the type and the values of alternative’s factors are probably the most important issue in this approach. Therefore, in the proposed approach, a competitive advantage model was built to measure the values of alternative’s factors. Then, a satisfactory cost-benefit analysis model with random data was proposed to evaluate the alternatives. The cost-benefit analysis of each alternative was carried out to obtain the real and satisfactory cost-benefit of the decision-maker.Design/methodology/approachThis paper is orientationally expressed as a mathematical problem in which the optimization problem needs to analyze the approach. This paper is written based on uncertainty linear optimization. Optimization under uncertainty refers to this branch of optimization where there are uncertainties involved in the data or the model and is popularly known as stochastic optimization problems.FindingsAs was seen in the purpose part, in this paper, an approach is presented to cost-benefit analysis by the use of competitive advantage with stochastic data. In this regards, a stochastic optimization problem to assess competitive advantage is proposed. This optimization problem recognizes the values of alternative’s factors which is the most important step in cost-benefit analysis. An optimization problem is proposed to cost benefit analysis, as well.Practical implicationsTo investigate different aspects of the proposed approach, a case study with random data of 21 economic projects was considered.Originality/valueCost–benefit analysis is a systematic approach to estimating the strengths and weaknesses of alternatives used to determine options which provide the best approach to achieving benefits while preserving savings. Cost–benefit analysis is related to cost-effectiveness analysis. Benefits and costs are expressed in monetary terms and are adjusted for the time value of money; all flows of benefits and costs over time are expressed on a common basis in terms of their net present value, regardless of whether they are incurred at different times. As seen the paper using competitive advantage tries to determine the values of alternative’s factor. As competitive advantage model analyze the advantages and disadvantages of alternatives, this paper by the use of this idea tries to determine the costs and benefits. Two stochastic optimization problems in the middle of this approach are proposed, which assess competitive advantage and cost–benefit analysis, respectively.

-3 HHE work of several writers appears largely to have succeeded in mak..Ling disreputable the once fashionable practice of crediting public investment activities in the development of water resources, in particular, with substantial "secondary" or "indirect" benefits.2 Secondary benefits in one guise or another still appear to be much in style, however, in dealing with the benefits of investments in highways and other transportation facilities. Among the benefits of highway investment to which reference is commonly made are those presumed to accrue to property owners. More specifically, many studies have demonstrated that land values tend to increase sometimes dramatically-in the vicinity of newly improved highways.3 Since these increases are independent of the extent to which the affected property owners use the highway facilities involved, such gains are quite properly labeled "non-user benefits." They are, furthermore, commonly regarded as benefits over and above those that accrue to highway users. That is to say, they are regarded as benefits that must in some way be added to those arising directly from highway use if total highway benefits are to be estimated accurately. Although widely accepted (particularly among highway planners), this final conclusion is, as it happens, fallacious. That property values increase in the vicinity of highway improvements does reflect the existence of highway benefits. Careful analysis of highwayland value relationships can yield valuable information on the magnitude of these benefits. Increases in land value are not in themselves net highway benefits, however. Rather, they reflect an actual or potential transfer of benefits derived from highways from one population group to another. Furthermore, the fact that land values generally do increase in the vicinity of highway improvements by no means guarantees that a net effect of these improvements is to increase land values as a whole. The primary goal of this paper is to demonstrate these assertions by exploring the relationship between land values on the one hand and transportation costs and reductions in them on the other. More specifically, Section I demonstrates the effects of certain types of transporta1 I am indebted to Robert Clower, William Garrison, William Pendleton, and Stephen Sobotka for much helpful advice. Richard Morrill undertook one of the preliminary analyses underlying the material reported in Section II, while Harold Williamson, Jr., directed most of the statistical work entailed in this section. The work reported here was undertaken as part of a larger study of the nature and measurement of highway benefits carried out with the support of the Bureau of Public Roads. My views do not necessarily reflect those of the Bureau, however.

Applied Welfare Economics: Cost-Benefit Analysis for Project and Policy Evaluation presents a consistent framework for applied welfare economics and is grounded in a comprehensive theory of cost-benefit analysis, specifically focused on offering a practical approach to policy and project evaluation. After opening with a theoretical discussion of the concept of social welfare, a critical analysis of the traditional doctrine of welfare economics embodied in the Two Fundamental Theorems, and a presentation of social cost-benefit analysis, the book introduces readers to an applied framework. This includes the empirical estimation of shadow prices of goods, the social cost of labour and capital, and the assessment of risk. The book also examines real-life experiences with cost-benefit analysis, including ex-post evaluation of major projects, economic rates of return in different sectors, and a case study on privatisation. These chapters draw on first-hand research gained by the author team from years of advisory work for the European Commission and other international and national institutions. This second edition presents updated data, more international examples, and more coverage of topics such as very long run discounting effects and climate change as an intergenerational effect. It also includes more practical examples and end-of-chapter questions to aid student’s learning. Applied Welfare Economics is a valuable textbook for upper-level courses on welfare economics, cost-benefit analysis, public policy analysis and related areas.

Waste generation nowadays is rising in the world and it seems hard to prevent it. Municipal Solid Waste (MSW) has been a major problem worldwide, especially in the fast growing cities and towns in the developing countries. This study aims to estimate the cost benefit and mitigation of greenhouse gases (GHGs) by converting the on-campus food and green waste generated in Universiti Teknologi of Malaysia (UTM) campus to compost. This study calculated the costing which includes the transportation, operating and equipment costs if green and food waste were converted into compost. The analyses were made with the basis of the pilot scale operation in Phase I operation. Extrapolation was made to project the further four phases of composting with higher amount of waste to estimate the potential profit. The results obtained from this study indicated that composting has the potential to generate a significant profit of Malaysia Ringgit (MYR)1.6 M/y based on 2,700 t/y of food and green waste composted. At the same time, the total solid waste supposedly to be sent to the landfill can be reduced by at least 47 %. Moreover, this study revealed that the composting process is able to reduce the GHGs emission rate by 90 %, i.e. the GHGs produced by the composting process is shown to be only 10 % of the total GHGs produced by landfill dumping given the same amount of solid waste to be disposed at the landfill site.

Cost Benefit Analysis (CBA) is an important financial analytical tool which gives an insight to the viability and feasibility of a project. With the growing prominence of the smart grids, various smart grid pilot projects are supported by the Ministry of Power, India. These projects should be evaluated by performing the CBA. The profitability indicators used to evaluate a project is the Net Present Value (NPV), Internal Rate of Return (IRR), Benefits to Cost Ratio (B/C) and the Payback Period (PB). Advanced Metering Infrastructure (AMI) is the backbone of the smart grid and is the largest cost component of the total cost. This paper focuses on the deployment of AMI for two scenarios. In scenario A, smart meters are deployed for all the customers on 1000 feeders and in scenario B, only the customers whose monthly consumption is greater than 200 units are considered for the deployment. This is an extended case study of the India Smart Grid Forum (ISGF). The pecuniary value of the costs and the benefits are considered by consulting various utilities. Only the monetary values of the benefits and the costs are obtained from the base case. In this paper three sub-cases are created in each scenario by choosing different percentages of the loan being taken to check the worst-case feasibility of the project. CBA is performed for both the scenarios. Subsequently, financial analyses done for both the cases are reported and discussed. The results identify the threshold values of loan. The sensitivity analysis show that project is viable and profitable up to reduction of benefit by 20% with no changes in the cost.

The estimation of reliable measures of the valuation of travel time savings (VTTS) is one of the main topics in the area of travel behaviour research. Such estimates are a crucial input for policy decisions, for example in the context of cost benefit analysis. Two main ways exist of improving the reliability of VTTS estimates; using better data, and using better modelling approaches. The aim of using better data can be achieved primarily by improving the design of the surveys used in the collection. However, the stability and quality of estimates can also be improved upon by making use of larger samples and by using a more cross-sectional sample of the population, i.e. making the sample population more representative of the overall population. In terms of using better modelling approaches, there are again two possible avenues for improvements, namely those of model structure and model specification. The former refers to the actual mathematical structure of the econometric model, while the latter concerns the specification of the utility function used in that model. evidence from a large-scale VTTS study conducted in Switzerland, where the aim is precisely to improve the reliability of the VTTS estimates through improving the quality of the model inputs and the model specification. The quality of the data is improved through grouping together observations from five separate SP studies conducted over recent years, leading to a very large sample size of almost 60,000 observations. This not only improves the stability of the results through estimation on a larger sample size, but the aggregation of five datasets should arguably provide a better cross-section of the population. In terms of model specification, we make use of flexible non-linear specifications that allow for a continuous interaction between income and trip distance and the various marginal utility coefficients. This allows us to directly gauge the variations in the VTTS in relation to income and trip distance, and also proves very useful when extrapolating the results from the sample level to the population level. On completion of the study, the results of the analysis will be fully integrated into the new official Swiss guidance for cost-benefit analysis. Initial findings from the analysis show significant differences when compared to corresponding analyses making use of a more basic utility specification. As expected, the results obtained on the overall sample differ from those obtained on the individual samples, by giving a weighted average. For the covering abstract see ITRD E137145.

In chapter 4 the evaluative techniques of cost-effectivness analysis and cost-benefit analysis were outlined. Most studies claiming to use these techniques in health care have in practice involved cost-effectiveness analysis, that is investigating how to deliver health care, rather than cost-benefit analysis, in which the emphasis is more on whether and how much of different types of care to provide.

Purpose Present research focus on using solar energy as a renewable option for office buildings in different climatic conditions in Iran. To seeking a way to use clean solar energy and reduce current expense in buildings an investigation carried out. Nine office buildings in various climatic regions selected as case studies. Through a precise examination, buildings specifications, energy demand and climate information carried out. In the first step based on the buildings type and hot water demand, solar water heater systems designed for each case. In the second step, a cost-benefit analysis is done to detriment the economic aspects of implement aforementioned type of solar system. A cost-benefit analysis is done from saving energy and return time of investment point of view. Results indicate that solar water heater with low investment about US$500 and payback time between 2 and 5 years can be noticed as a desirable renewable option in case studies. Furthermore, analysis reveals that thermal load of building is more effective on fuel saving in building, while solar radiation intensity has more effective on the payback in solar water heater utilization. Design/methodology/approach In this study based on thermal load of nine building office and radiation of different part of Kermnashah province, the possibility of solar water system is investigated. Findings Analyses reveal that the thermal load of building is more effective on fuel saving, while solar radiation intensity has more effective on the payback in solar water heater utilization. The main originality goes back to consideration of different meteorological conditions in solar water heater selection.

Sustainable tourism is critical in driving economic growth, preserving the environment, and enhancing social well-being by minimizing negative impacts and maximizing long-term benefits. Cost-benefit analysis (CBA) is a vital tool for stakeholders and decision-makers to examine the feasibility and impacts of tourism projects by quantifying economic, environmental, and social factors. This study presents state-of-the-art practices in applying CBA to sustainable tourism and its use in assessing return on investment, employment, poverty reduction, biodiversity, and cultural heritage conservation. While CBA enhances decision-making, challenges remain in assessing non-market benefits and trade-offs between stakeholders. This paper synthesizes real-world applications and methodological advances and examines how CBA informs evidence-based sustainable tourism policy. Using Peja, Kosovo, as a case study, the paper identifies the need to integrate local economic, environmental, and cultural factors into QA frameworks to inform sustainable development.

To enforce the implementation of the Kyoto Protocol targets, a number of governmental/international institutions have launched emission trade schemes as an approach to specify CO(2) caps and to regulate the emission trade in recent years. These schemes have been basically applied for large industrial sectors, including energy producers and energy-intensive users. Among them, cement plants are included among the big greenhouse gas (GHG) emitters. The use of waste as secondary fuel in clinker kilns is currently an intensive practice worldwide. However, people living in the vicinity of cement plants, where alternative fuels are being used, are frequently concerned about the potential increase in health risks. In the present study, a cost-benefit analysis was applied after substituting classical fuel for sewage sludge as an alternative fuel in a clinker kiln in Catalonia, Spain. The economical benefits resulting in the reduction of CO(2) emissions were compared with the changes in human health risks due to exposure to polychlorinated dibenzo-p-dioxins and dibenzofurans (PCDD/Fs) and carcinogenic metals (As, Cd, Co, and Cr) before and after using sewage sludge to generate 20% of the thermal energy needed for pyro-processing. The exposure to PCDD/Fs and metals through air inhalation, soil ingestion and dermal absorption was calculated according to the environmental levels in soil. The carcinogenic risks were assessed, and the associated cost for the population was estimated by considering the DG Environment's recommended value for preventing a statistical fatality (VPF). In turn, the amount of CO(2) emitted was calculated, and the economical saving, according to the market prices, was evaluated. The use of sewage sludge as a substitute of conventional energy meant a probability cancer decrease of 4.60 for metals and a cancer risk increase of 0.04 for PCDD/Fs. Overall, a net reduction of 4.56 cancers for one million people can be estimated. The associated economical evaluation due to the decreasing cancer for 60,000 people, the current population living near the cement plant, would be of 0.56 million euros (US$ 0.83 million). In turn, a reduction of 144,000 tons of CO(2) emitted between 2003 and 2006 was estimated. Considering a cost of 20 euros per ton of CO(2), the global saving would be 2.88 million euros (US$ 4.26 million). After the partial substitution of the fuel, the current environmental exposure to metals and PCDD/Fs would even mean a potential decrease of health risks for the individuals living in the vicinity of the cement plant. The total benefit of using sewage sludge as an alternative fuel was calculated in 3.44 million euros (US$ 5.09 million). Environmental economics is becoming an interesting research field to convert environmental benefits (i.e., reduction of health risks, emission of pollutants, etc.) into economical value. The results show, that while the use of sewage sludge as secondary fuel is beneficial for the reduction in GHG emissions, no additional health risks for the population derived from PCDD/F and metal emissions are estimated. Cost-benefit analysis seems to be a suitable tool to estimate the environmental damage and benefit associated to industrial processes. Therefore, this should become a generalized practice, mainly for those more impacting sectors such as power industries. On the other hand, the extension of the study could vastly be enlarged by taking into account other potentially emitted GHGs, such as CH(4) and N(2)O, as well as other carcinogenic and non-carcinogenic micropollutants.

For a successful introduction of Intelligent Transport Systems (ITS) it is important to determine (socio-economic) impacts and societal costs and benefits of these systems beforehand, and to develop business models. Governments usually make investment decisions based on these aspects. In the field of ITS tools exist for the separate parts of this analysis, but an integrated tool that combines impact assessment, cost benefit analysis and business modelling is lacking. A crucial step in such an integrated tool is scaling up: translating small scale traffic effects to large scale societal benefits. Traffic effects are usually determined in an experiment, for example a Field Operational Test or micro simulation, for scenarios limited in time and geographical scale. A societal cost benefit analysis demands results on for example country or EU level, for a whole year. In practice little attention is paid to the methodology for scaling up. In the European project ITS Test Beds TNO has developed a practical methodology for scaling up, integrating the tools for micro simulation and cost benefit analysis using statistics. Another way of scaling up small scale traffic effects is using macro simulation. This paper describes the problems that play a role in scaling up, and works out the two mentioned scaling up methods. An illustration of scaling up with statistics is given with a case study on Speed Alert.

Research for development (R4D) funding is increasingly expected to demonstrate value for money (VfM). However, the dominance of positivist approaches to evaluating VfM, such as cost-benefit analysis, do not fully account for the complexity of R4D funds and risk undermining efforts to contribute to transformational development. This paper posits an alternative approach to evaluating VfM, using the UK’s Global Challenges Research Fund and the Newton Fund as case studies. Based on a constructivist approach to valuing outcomes, this approach applies a collaboratively developed rubric-based peer review to a sample of projects. This is more appropriate for the complexity of R4D interventions, particularly when considering uncertain and emergent outcomes over a long timeframe. This approach could be adapted to other complex interventions, demonstrating that our options are not merely “CBA or the highway” and there are indeed alternative routes to evaluating VfM.Supplementary InformationThe online version contains supplementary material available at 10.1057/s41287-022-00565-7.

Tacit knowledge plays an important role in decision-making. That is why, in this paper, we propose a group tacit knowledge-based multicriteria approach for decision processes. This approach is based on a practical case study in the field of second-hand vehicle purchase. This paper proposes ideas and research issues on how to tackle tacit knowledge in group decision processes with cost-benefit and multicriteria decision analysis. Because tacit knowledge cannot always be explained, we use the multicriteria decision analysis to fittingly explain tacit knowledge which can be explained. In order to respect the financial policy of the company that purchases/sells second-hand vehicles, we continue using the cost-benefit analysis already implemented. The goal is to help the buyer and the seller to compromise on the best price.

This chapter examines the costs and benefits of geographic information systems (GIS). It focuses on the research questions of what components to include in GIS cost-benefit (C-B) analysis, what distinguishes GIS C-B analysis from non-spatial C-B analysis, what methods to use, and how to invest in GIS systems in order to obtain net payoffs over time. It categorizes costs and benefits of GISs. It considers the topics of systems analysis sub-steps in cost-benefit analysis, the feasibility decision, stakeholders and externalities, and the importance of timing and timeliness in investing in GIS and assessing payoffs. It examines the C-B aspects of a well-known GIS case study of Sears Roebuck’s delivery system. The literature on the value of investment in IT and productivity paradox is analyzed for its relevance to GIS investment. The major findings are, first, that the costs and benefits of a GIS can be estimated through modifications of standard non-spatial IS methods. Second, the key factors that differentiate GIS cost-benefit analysis from that of non-spatial IS are more extensive analyses of the costs of data acquisition, need to pro-rate the GIS costs and benefits for tightly linked combinations of GIS and other systems and technologies, and need for improved techniques to estimate the costs and benefits of the GIS’s visualization features.

BackgroundCurrent Canadian evidence illustrating the health benefits and cost-effectiveness of caregiver-friendly workplace policies is needed if Canadian employers are to adopt and integrate caregiver-friendly workplace policies into their employment practices. The goal of this three-year, three study research project is to provide such evidence for the auto manufacturing and educational services sectors. The research questions being addressed are: What are the impacts for employers (economic) and workers (health) of caregiver-friendly workplace policy intervention(s) for full-time caregiver-employees? What are the impacts for employers, workers and society of the caregiver-friendly workplace policy intervention(s) in each participating workplace? What contextual factors impact the successful implementation of caregiver-friendly workplace policy intervention(s)?MethodsUsing a pre-post-test comparative case study design, Study A will determine the effectiveness of newly implemented caregiver-friendly workplace policy intervention(s) across two workplaces to determine impacts on caregiver-employee health. A quasi-experimental pre-post design will allow the caregiver-friendly workplace policy intervention(s) to be tested with respect to potential impacts on health, and specifically on caregiver employee mental, psychosocial, and physical health. Framed within a comparative case study design, Study B will utilize cost-benefit and cost-effectiveness analysis approaches to evaluate the economic impacts of the caregiver-friendly workplace policy intervention(s) for each of the two participating workplaces. Framed within a comparative case study design, Study C will undertake an implementation analysis of the caregiver-friendly workplace policy intervention(s) in each participating workplace in order to determine: the degree of support for the intervention(s) (reflected in the workplace culture); how sex and gender are implicated; co-workers’ responses to the chosen intervention(s), and; other nuances at play. It is hypothesized that the benefits of the caregiver-friendly workplace policy intervention(s) will include improvements in caregiver-employees’ mental, psychosocial and physical health, as well as evidence of cost-benefit and cost-effectiveness for the employer.DiscussionThe expected project results will provide the research evidence for extensive knowledge translation work, to be carried out in collaboration with our knowledge transition partners, to the employer/human resources and occupational health/safety target populations.Trial registrationISRCTN16187974 Registered August 25, 2016.