Public participation help CBA/MCA at various stages of analysis to minimize the role of subjective factors and arrive at figures which best reflect social valuation. It
The major shortcomings of MCA arise when some option would be better against one criterion but worse against another in the matrix. This is a
The technique of sensitivity analysis can deal with uncertainties when alternative assumptions about key variables are made and their effects on the project’s net effect
The IRR of a project is the rate at which the NPV is zero or the present value of costs and benefits are equal or
The Net Present value (NPV) is a sum of the present or discounted value of costs and benefits for each year. The NPV is a
The use of discount rate has become an integral part of CBA because a high discount rate tends to give a lower value to benefits
Hedonic pricing is a method to establish the monetary value of such items as noise, flood risk, air quality etc based on the assumption that
CVM is essentially a method which provides values (in terms of willing to pay (WTP) or willing to accept compensation (WTA)) of the concerned people
Floods produce several direct and indirect effects most of which remain unpriced by the market. Many of the benefits provided by natural resources such as
The direct benefits from flood management projects is determined by the annual average of flood damage minus the residual damage that may continue to take
Financial and economic analyses have similar features. Both estimate the net-benefits of a project investment based on the difference between the with-project and the without-project
Economic analysis is essential because the techniques of economics are geared to attempt a “balance” between two or more objectives, IFM needs adequate understanding