E-Book Overview
Throughout the text of this introduction to benefit cost analysis, emphasis is on applications, and a worked case study is progressively undertaken as an illustration of the analytical principles in operation. The first part covers basic theory and procedures. Part Two advances to material on internationally tradeable goods and projects that affect market prices, and part Three introduces special topics such as the treatment of risk and uncertainty, income distributional effects and the valuation of non-marketed goods.
E-Book Content
This page intentionally left blank Benefit-Cost Analysis Financial and Economic Appraisal using Spreadsheets This text offers the perfect introduction to social benefit-cost analysis. The book closely integrates the theory and practice of benefit-cost analysis using a spreadsheet framework. The spreadsheet model is constructed in a truly original way which contributes to transparency, provides a check on the accuracy of the analysis, and facilitates sensitivity, risk and alternative scenario assessment. A case study incorporating the various issues is progressively developed on a spreadsheet with the links between each stage thoroughly explained. The complete case study spreadsheet can serve as a template for the reader’s own appraisal of projects in the field. In addition to the worked examples in the text some exercises are appended at the end of each chapter. The book has several unique features: • the close integration of spreadsheet analysis with analytical principles; • the spreadsheet approach provides an invaluable cross-check on the accuracy of the appraisal; • the book is structured in a way that allows readers to choose the level of analysis which is relevant to their own purposes. The text is suitable for people with a basic understanding of elementary economics who wish to learn how to conduct a social benefit-cost analysis. Harry Campbell and Richard Brown are both in the School of Economics at The University of Queensland. They have extensive experience in teaching and applied benefit-cost analysis and have between them held academic positions at universities in North America, Europe, Africa and Australia. For: Jenny, Jamie and Astrid Kathy, Ben, James, Oliver and Alex Benefit-Cost Analysis Financial and Economic Appraisal using Spreadsheets Harry F. Campbell and Richard P. C. Brown The University of Queensland Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo Cambridge University Press The Edinburgh Building, Cambridge , United Kingdom Published in the United States of America by Cambridge University Press, New York www.cambridge.org Information on this title: www.cambridge.org/9780521821469 © Harry F. Campbell and Richard P. C. Brown 2003 This book is in copyright. Subject to statutory exception and to the provision of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press. First published in print format 2003 - - - - - - eBook (EBL) - - - eBook (EBL) - - - - - - hardback - - - hardback - - - - - - paperback - - - paperback Cambridge University Press has no responsibility for the persistence or accuracy of s for external or third-party internet websites referred to in this book, and does not guarantee that any content on such websites is, or will remain, accurate or appropriate. Contents List of figures List of tables vi ix Preface xi 1 Benefit-Cost Analysis: Introduction and Overview 2 Investment Appraisal: Principles 18 3 Investment Appraisal: Decision-