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Protecting the Booroolong Frog in the Namoi Catchment: A Cost-Benefit Analysis

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  • Greyling, Tertius
  • Bennett, Jeffrey W.

Abstract

The Booroolong frog project in the Namoi Catchment represents an environmental investment to protect the species and around 10.7 kilometres of its habitat in the catchment. The project’s benefit-cost ratio (BCR) of 8.6 indicates that the benefits outweigh the costs by a significant margin. The measures introduced by landholders, at relatively low cost, should therefore result in a significant return on investment upon project completion in 10 years time. The benefits are estimated using a choice modelling study which was recently developed for the valuation of investment in natural resource management in the Namoi Catchment. As this is a largely ex ante cost-benefit analysis, the BCR is subject to uncertainty associated with assumptions which had to be made for some variables. However, sensitivity analysis indicates that the project benefits outweigh the costs by a significant margin even under conservative conditions.

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Bibliographic Info

Paper provided by Australian National University, Environmental Economics Research Hub in its series Research Reports with number 107851.

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Date of creation: Mar 2011
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Handle: RePEc:ags:eerhrr:107851

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Keywords: Cost-benefit analysis; Benefit-cost ratio; Choice modelling; Booroolong Frog; Namoi Catchment; Environmental Economics and Policy; Research Methods/ Statistical Methods;

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  1. Mazur, Kasia & Bennett, Jeffrey W., 2009. "A Choice Modelling Survey of Community Attitudes to Improvements in Environmental Quality in NSW Catchments," Research Reports 94813, Australian National University, Environmental Economics Research Hub.
  2. Nick Hanley, 2001. "Cost - benefit analysis and environmental policymaking," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 19(1), pages 103-118, February.
  3. Campbell,Harry F. & Brown,Richard P. C., 2003. "Benefit-Cost Analysis," Cambridge Books, Cambridge University Press, number 9780521528986.
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