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Reconciliation Once and For All: Economic Impact Evaluation and Social Cost Benefit Analysis

Author

Listed:
  • Onil Banerjee

    (Inter-American Development Bank)

  • Martin Cicowiez

    (UNLP)

  • Adela Moreda

    (Inter-American Development Bank)

Abstract

This paper makes two contributions to the debate on the compatibility of social cost benefit analysis and economic impact analysis. First we argue that benefits estimated through economic impact analysis are amenable to subsequent analysis in a social cost benefit framework when household utility is used as the measure of welfare. Second, economic impact analysis and social cost benefit analysis of investment loans may be evaluated from the perspective of the multilateral lender and from that of the beneficiary government. While the first is straightforward to implement, this paper develops an approach to evaluating the investment from the perspective of the beneficiary government which internalizes the repayment of the loan within the economic impact model itself. We compare these two perspectives by undertaking an economic impact and social cost benefit analysis of a US$6.25 million tourism investment in Uruguay.

Suggested Citation

  • Onil Banerjee & Martin Cicowiez & Adela Moreda, 2017. "Reconciliation Once and For All: Economic Impact Evaluation and Social Cost Benefit Analysis," CEDLAS, Working Papers 0207, CEDLAS, Universidad Nacional de La Plata.
    • Handle: RePEc:dls:wpaper:0207
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    References listed on IDEAS

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    2. Onil Banerjee & Martin Cicowiez & Renato Vargas & Mark Horridge, 2019. "The SEEA-Based Integrated Economic-Environmental Modelling Framework: An Illustration with Guatemala’s Forest and Fuelwood Sector," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(2), pages 539-558, February.
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    5. Onil Banerjee & Martin Cicowiez & Renato Vargas & Mark Horridge, 2017. "An Application of the Integrated Economic-Environmental Modelling Framework to Guatemala's Forest and Fuelwood Sector," Centre of Policy Studies/IMPACT Centre Working Papers g-273, Victoria University, Centre of Policy Studies/IMPACT Centre.
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    16. Onil Banerjee & Martin Cicowiez & Renato Vargas & Mark Horridge, 2016. "The Integrated Economic-Environmental Modelling Framework: An Illustration with Guatemala's Forest and Fuelwood Sectors," IDB Publications (Working Papers) 97062, Inter-American Development Bank.
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    Cited by:

    1. Andrés Artal-Tur & José Miguel Navarro-Azorín & José María Ramos-Parreño, 2020. "Measuring the economic contribution of tourism to destinations within an input-output framework: some methodological issues," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 19(3), pages 243-265, September.

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    More about this item

    JEL classification:

    • Z3 - Other Special Topics - - Tourism Economics
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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