A Note on How to Undertake a Cost-Benefit Analysis in Monetary and Environmental Units
9 Pages Posted: 6 Apr 2010 Last revised: 18 May 2013
Date Written: April 1, 2010
In this note we discuss two alternative ways of undertaking a social cost-benefit analysis. One approach is the conventional one where benefits and costs are expressed in monetary units. The other approachuses an environmental asset as the payment vehicle. The properties of the two approaches are discussed and the measurement problems are stressed.
Keywords: Cost-benefit analysis, externalities, choice of numeraire, habitat equivalence analysis, resource equivalency methods
JEL Classification: D61, H43, Q51, Q57
Suggested Citation: Suggested Citation