Cost-benefit analysis
General data
Course ID: | 2400-M1AKiK |
Erasmus code / ISCED: |
14.3
|
Course title: | Cost-benefit analysis |
Name in Polish: | Analiza kosztów i korzyści |
Organizational unit: | Faculty of Economic Sciences |
Course groups: |
(in Polish) Przedmioty kierunkowe do wyboru - studia II stopnia EP - grupa 2 (1*30h) (in Polish) Przedmioty kierunkowe do wyboru - studia II stopnia FR - grupa 3 (4*30h) |
ECTS credit allocation (and other scores): |
4.00
|
Language: | Polish |
Type of course: | obligatory courses |
Short description: |
This course is designed for students interested in the social welfare and economic efficiency of environmental projects and policies. The objective of the course is to provide an information concerning the rationale and the fundamental concepts of the social Cost-benefit analysis (CBA). Students will learn how to evaluate proposals by determining impacts as benefits and costs, valuing them in monetary terms and calculate the net benefits of a project relative to the status quo situation. Additionally, the course should help students in an appraisal of the validity and usefulness of different techniques employed in the economic valuation. |
Full description: |
During the course the following topics will be discussed: 1. Introduction to Cost-Benefit Analysis (CBA) a. Individual vs. Social Costs and Benefits b. The purpose and uses of CBA c. The demand and the cost of CBA for environmental projects 2. Conceptual Foundations of CBA a. Using CBA for Decision Making b. Fundamental Issues related to Willingness to Pay 3. Microeconomic Foundations of CBA a. Social surplus and allocative efficiency b. Alternative ways to calculated Net Social Benefits 4. Economic value of environment a. Use, non-use and option values b. Direct and indirect effects 5. Shadow prices a. General ways to derive shadow prices 6. Valuing environmental Impacts - revealed preferences methods a. Hedonic price Method b. Travel Cost Method 7. Valuing environmental Impacts - stated preferences methods a. Contingent valuation b. Choice modelling 8. Discounting benefits and costs a. Comparing projects with different time frames b. Inflation, real and nominal values c. The social discount rate 9. Risk and uncertainty a. Economic theory b. Risk and irreversibility c. Risk and the social discount rate 10. Accuracy of CBA a. Sensitivity analysis b. Sources of errors in CBA studies c. The distribution of net benefits over time d. Concerns about the role of CBA in the political processes 11. Related evaluation methods and accuracy a. Cost-Effectiveness Analysis b. Multi Criteria Analysis. |
Bibliography: |
1. Boardman, A;, Greenberg, D., Vining, A., Weimer, D., (2012). Cost-Benefit Analysis: Concepts and Practice, 4th edition, Pearson 2. EC (2014). Guide to Cost-Benefit Analysis of Investment Projects for Cohesion Policy 2014-2020, http://ec.europa.eu/regional_policy/en/information/publications/guides/2014/guide-to-cost-benefit-analysis-of-investment-projects-for-cohesion-policy-2014-2020 |
Learning outcomes: |
After completing the course, the student can apply CBA in practice. She/he is aware of the complexity of this process of this analysis. In addition, the student knows the bases of other economic techniques for the public projects assessment. SW01, SW02, SW03, SW04, SW05, SU01, SU02, SU03, SU04, SU05, SU06, SU07, SK01, SK02, SK03 |
Assessment methods and assessment criteria: |
The final grade consists of two elements: 40% points are for case studies, 60% points are for the final test. In order to pass the course, you need to get at least 50% in the final test and at least 50% of all points possible to get. |
Classes in period "Summer semester 2023/24" (in progress)
Time span: | 2024-02-19 - 2024-06-16 |
Navigate to timetable
MO KON
TU W TH FR |
Type of class: |
Seminar, 30 hours
|
|
Coordinators: | Anna Bartczak | |
Group instructors: | Anna Bartczak | |
Students list: | (inaccessible to you) | |
Examination: |
Course -
Grading
Seminar - Grading |
Copyright by University of Warsaw.