Outline of lecture

This course aims to provide the methods necessary to undertake project evaluation and cost benefit analysis for sustainable infrastructure. The methods comprise of microeconomics background, cost benefit analysis, valuing market and non-market goods, and other technical issues. Case studies of various infrastructures are also provided.

Purpose of lecture

This course aims to provide the methods necessary to undertake project evaluation and cost benefit analysis for sustainable infrastructure. The methods comprise of microeconomics background, cost benefit analysis, valuing market and non-market goods, and other technical issues. Case studies of various infrastructures are also provided.

Plan of lecture

1. Introduction to Project Evaluation
2. Basics of Microeconomic Theory
3. Foundations of Cost Benefit Analysis
4. Valuing Benefits and Costs in Primary Markets
5. Valuing Benefits and Costs in Secondary Markets
6. Discounting Benefit and Costs
7. Existence Value
8. Valuing Market Goods
9. Valuing Non-Market Goods: Revealed Preference
10.Valuing Non-Market Goods: Stated Preference
11.Cost Effective Analysis
12.Case Studies: Transport Infrastructures
13.Case Studies: Other Infrastructures

Textbook and reference

Boardman, A. E., Greenberg, D. H., Vining, A. R. and Weimer, D. L. (2006)
Cost Benefit Analysis: Concepts and Practice (3rd Edition), Prentice Hall College.

Pearce, D., Atkinson, G. and Mourato, S. (2006)
Cost-Benefit Analysis and the Environment: Recent Developments, OECD Publishing.

Varian, H.R. (2003)
Intermediate Microeconomics: A Modern Approach 6th Edition,
W.W.Norton and Company.

UNESCAP (2007)
Sustainable Infrastructure in Asia -Overview and Proceedings-.

Related and/or prerequisite courses

70029 Introduction to Economics for Engineers (Dr. Abe)

Evaluation

Presentation, Report, Midterm and Final Exam.