Infrastructures such as road are necessary for our daily life and economic growth, however environmental and other negative social cost must be minimized when investing in such infrastructures for a sustainable society. This course aims to provide the methods necessary to undertake project evaluation and cost benefit analysis based on a microeconomics background, in particular valuing non-market goods, and other technical issues. Case studies are also provided for understanding real world applications.
Students can understand the concept and methods of project evaluation comprehensively.
Project Evaluation, Cost Benefit Analysis, Benefit Estimation Method
|Intercultural skills||Communication skills||Specialist skills||Critical thinking skills||Practical and/or problem-solving skills|
Lectures and a few exercises are provided in the course and the final exam is also taken.
|Course schedule||Required learning|
|Class 1||Introduction to Project Evaluation||Economic Evaluation, Financial Evaluation|
|Class 2||Foundations of Cost Benefit Analysis||Cost Function, Social Benefit|
|Class 3||Valuing Benefit and Cost||Competitive Market, Monopoly|
|Class 4||Net Present Value||Social Discount Rate|
|Class 5||Valuing Impacts: Indirect Market Method(1)||Externality, Value of Time|
|Class 6||Valuing Impacts: Indirect Market Method(2)||Hedonic Pricing, Travel Cost Method|
|Class 7||Valuing Impacts: Stated Preference||Contingent Valuation Method|
Boardman, A. E., Greenberg, D. H., Vining, A. R. and Weimer, D. L. (2010) Cost Benefit Analysis: Concepts and Practice (4th Edition), Prentice Hall College.
Varian, H.R. (2010) Intermediate Microeconomics- A Modern Approach: 8th Edition, W.W.Norton and Company.
Exercise (30), Final Examination (70)