Consider a project to build a secondary school. Prepare a report that sets and discusses the main components of a CBA of this chosen project and write as if it is being prepared for a senior civil servant, who may be interested in undertaking a full Cost Benefit Analysis for the project. At this point, the senior civil servant wants to know what the scope of the appraisal of the project would contain, and how it would be undertaken, including the details of the valuation of eventual non-market items. The report should provide details of the techniques of cost-benefit analysis and should specifically describe and detail the items (costs and benefits) being considered in the analysis. Note: not required to conduct an actual CBA or do any calculations. Structure 1. The chosen project - should be appropriate study for a social cost-benefit study 2. Set out the Cost-Benefit Analysis method being used in general terms, including the choice of the discount rate. 3. Sketch out and list the costs and benefits for the selected project which will be considered in a full CBA. 4. Discuss how non-market items used in the analysis could be valued. 5. Identify eventual circumstances in which shadow prices of marketed items should be used. 6. Discuss the role of uncertainty in the specific analysis of the chosen project. Useful information can be found at ‘The Green Book: appraisal and evaluation in central government’
Consider a project to build a secondary school.
Prepare a report that sets and discusses the main components of a CBA of this chosen project and write as if it is being prepared for a senior civil servant, who may be interested in undertaking a full Cost Benefit Analysis for the project. At this point, the senior civil servant wants to know what the scope of the appraisal of the project would contain, and how it would be undertaken, including the details of the valuation of eventual non-market items. The report should provide details of the techniques of cost-benefit analysis and should specifically describe and detail the items (costs and benefits) being considered in the analysis.
Note: not required to conduct an actual CBA or do any calculations.
Structure 1. The chosen project - should be appropriate study for a social cost-benefit study
2. Set out the Cost-Benefit Analysis method being used in general terms, including the choice of the discount rate.
3. Sketch out and list the costs and benefits for the selected project which will be considered in a full CBA.
4. Discuss how non-market items used in the analysis could be valued.
5. Identify eventual circumstances in which shadow prices of marketed items should be used.
6. Discuss the role of uncertainty in the specific analysis of the chosen project.
Useful information can be found at ‘The Green Book: appraisal and evaluation in central government’
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