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

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  • Tertius Greyling

    ()
    (Crawford School of Public Policy, The Australian National University)

  • Jeff Bennett

    ()
    (Crawford School of Public Policy, The Australian National University)

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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Paper provided by Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University in its series Environmental Economics Research Hub Research Reports with number 10101.

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Date of creation: Mar 2011
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Handle: RePEc:een:eenhrr:10101

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  1. 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.
  2. Campbell,Harry F. & Brown,Richard P. C., 2003. "Benefit-Cost Analysis," Cambridge Books, Cambridge University Press, number 9780521528986, April.
  3. Kasia Mazur & Jeff Bennett, 2009. "A Choice Modelling Survey of Community Attitudes to Improvements in Environmental Quality in NSW Catchments," Environmental Economics Research Hub Research Reports 0913, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
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