360 pages, illustrations
Cost-Benefit Analysis (CBA) is one of the most useful tools of applied economics for the social appraisal of public projects and government policies. Nick Hanley and Edward Barbier show how CBA can be applied to environmental policy choice and environmental resource management. They cover the conceptual underpinnings of CBA, practical methods for applying CBA, and a wide range of case study applications from Europe, North America and developing countries. Issues such as the value of ecosystem services and the special problems posed for CBA by environmental management are brought into close focus. Cost-Benefit Analysis and Environmental Policy-Making is aimed at students on inter-disciplinary courses as well as those studying environmental economics, welfare economics and public policy. It will also be of interest to people in the policy community, NGOs and consultancy sectors.
Part I: The Tools
2. The Theoretical Foundations of CBA
3. Stated Preference Approaches to Environmental Valuation
4. Revealed Preference Approaches (1): The Travel Cost Model
5. Revealed Preference Approaches (2): Hedonic Pricing
6. Valuing the Environment: Production Function Approaches
7. Discounting and the Discount Rate
8. CBA in Developing Countries: What's Different?
Part II: Case Studies
9. Valuing Ecosystem Services
10. Costs and Benefits of Water Quality Improvements
11. Valuing Habitat Protection
12. Cost-Benefit Analysis and Renewable Energy
13. The Strengths and Weaknesses of Environmental CBA
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