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Stakeholders, Spatial Locations And Time Horizons In An Extended Social Cost-Benefit Analysis: A Case Of Pipalpankha Water Resource Project

Author

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  • P. RAM BABU

    (PricewaterhouseCoopers Ltd., Plot No. 242, Veer Savarkar Marg, Prabhadevi, Dadar (West), Mumbai — 400 024, India)

  • NALLATHIGA RAMAKRISHNA

    (Centre for Good Governance, Dr MCR HRD IAP Campus, Road No. 25, Jubilee Hills, Hyderabad — 500 033, India)

Abstract

Cost-Benefit Analysis (CBA) has been serving as an important tool for decision making with regard to the development projects involving large investments. The Social Cost-Benefit Analysis (SCBA) is an extension of the CBA to certain social impacts, which hitherto were not measured. As the impacts of development projects on ecology and environment assumed importance, measuring the corresponding costs and benefits also began to assume significance. With the advancement in economic valuation techniques over time, measurement could be done and the framework of SCBA has been extended to incorporate the same. Moreover, unlike the CBAs, which do not account for the distributional aspects, the SCBA can potentially account for these. This paper presents a case study of extending the SCBA framework to include social and environmental impacts of a large water resource development project in India. It emphasises the distribution of project benefits and costs over stakeholders, spatial locations and time horizons so as to demonstrate the utility of extended SCBA in project decision making. It is observed that both thenumerairemeasure i.e. cost-benefit ratio, as well as the distributional analysis present a favourable case for the project.

Suggested Citation

  • P. Ram Babu & Nallathiga Ramakrishna, 2009. "Stakeholders, Spatial Locations And Time Horizons In An Extended Social Cost-Benefit Analysis: A Case Of Pipalpankha Water Resource Project," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 11(02), pages 245-265.
    • Handle: RePEc:wsi:jeapmx:v:11:y:2009:i:02:n:s1464333209003336
    DOI: 10.1142/S1464333209003336
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    References listed on IDEAS

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    1. Munasinghe, M., 1993. "Environmental Economics and Sustainable Development," Papers 3, World Bank - The World Bank Environment Paper.
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