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Benefit Valuation in Different Sectors

In: Project Analysis in Developing Countries

Author

Listed:
  • Steve Curry

    (International Development Economist and Consultant)

  • John Weiss

    (University of Bradford)

Abstract

The earlier chapters have discussed the principles behind economic analysis of projects, and Chap. 7 has given a detailed discussion of estimating willingness to pay. Chapter 11 looks at valuation approaches for environmental effects, which are now highly relevant elements that need to be incorporated in a full analysis. This chapter looks at projects from sectors where the public sector is active in most economies. Benefits need to be estimated differently in each to allow for the varying types of project effects. The principle of valuation in terms of the incremental-non-incremental distinction remains relevant, although the application of these principles differs between sectors. Simplified examples are discussed from three sectors—transport, education, and health. Each sector is predominantly non-traded and for projects in these sectors, how benefits are treated is by far the most important issue in their economic analysis. The Appendices give three examples of practical applications of economic analysis in these sectors; at the same time, they illustrate practical shortcuts that are used frequently.

Suggested Citation

  • Steve Curry & John Weiss, 2023. "Benefit Valuation in Different Sectors," Springer Books, in: Project Analysis in Developing Countries, edition 3, chapter 0, pages 273-318, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-40014-8_10
    DOI: 10.1007/978-3-031-40014-8_10
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