Cost-Benefit Analysis for Investment Decisions: Chapter 11 (Economic Prices for Non-Tradable Goods and Services)
AbstractNon-tradable items are those which are not traded internationally. They include items such as services where the demander and producer must be in the same location, and commodities which have low value relative to either their weight or volume. In such cases the transportation charges prevent producers from profitably exporting their goods. Typically, non-tradable goods include such items as electricity, water supply, all public services, hotel accommodation, real estate, construction, local transportation; goods with very high transportation costs such as gravel; and commodities produced to meet special customs or conditions of the country. The key element to be borne in mind when considering the tradable and non-tradable classification is where the price for the good (or service) in question is determined. If this determination takes place in the world market, the good should be considered tradable. If the setting of the price takes place by supply and demand in the local market, the good should be considered non-tradable. This chapter describes how the economic prices of non-tradable goods and services are estimated.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by JDI Executive Programs in its series Development Discussion Papers with number 2011-11.
Length: 39 pages
Date of creation: Aug 2011
Date of revision:
Uncertainty; Risk; Investment Appraisal;
Find related papers by JEL classification:
- H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-01 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dinwiddy,Caroline L. & Teal,Francis J., 1996.
"Principles of Cost-Benefit Analysis for Developing Countries,"
Cambridge University Press, number 9780521479165, April.
- Dinwiddy,Caroline L. & Teal,Francis J., 1996. "Principles of Cost-Benefit Analysis for Developing Countries," Cambridge Books, Cambridge University Press, number 9780521473583, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bahman Kashi).
If references are entirely missing, you can add them using this form.