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Dynamic cost-benefit analysis of large projects: The role of capital cost

Author

Listed:
  • Li, Chuan-Zhong

    (Department of Economics)

  • Löfgren, Karl-Gustaf

    (Umeå University)

Abstract

This paper derives a dynamic cost-bene…t rule for evaluating large projects.We show that, in addition to the conventional income and consumer surplus measures, the rule also entails an extra term involving capital cost changes.

Suggested Citation

  • Li, Chuan-Zhong & Löfgren, Karl-Gustaf, 2010. "Dynamic cost-benefit analysis of large projects: The role of capital cost," Working Paper Series 2010:15, Uppsala University, Department of Economics.
    • Handle: RePEc:hhs:uunewp:2010_015
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    Cited by:

    1. Collins, Ross D. & Selin, Noelle E. & de Weck, Olivier L. & Clark, William C., 2017. "Using inclusive wealth for policy evaluation: Application to electricity infrastructure planning in oil-exporting countries," Ecological Economics, Elsevier, vol. 133(C), pages 23-34.

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    Keywords

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    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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