Protecting the Booroolong Frog in the Namoi Catchment: A Cost-Benefit Analysis

Crawford School Research Paper

Environmental Economics Research Hub Research Paper No. 101

20 Pages Posted: 10 Aug 2011  

Jeff Bennett

Crawford School of Public Policy

Tertius Greyling

Australian National University (ANU) - Crawford School of Public Policy

Date Written: March 1, 2011

Abstract

The Booroolong frog project in the Namoi Catchment represents an environmental investment to protect the species and around 10.7 kilometres of its habitat in the catchment. The project’s benefit-cost ratio (BCR) of 8.6 indicates that the benefits outweigh the costs by a significant margin. The measures introduced by landholders, at relatively low cost, should therefore result in a significant return on investment upon project completion in 10 years time. The benefits are estimated using a choice modelling study which was recently developed for the valuation of investment in natural resource management in the Namoi Catchment. As this is a largely ex ante cost-benefit analysis, the BCR is subject to uncertainty associated with assumptions which had to be made for some variables. However, sensitivity analysis indicates that the project benefits outweigh the costs by a significant margin even under conservative conditions.

Keywords: Cost-Benefit Analysis, Benefit-Cost Ratio, Choice Modelling, Booroolong Frog, Namoi Catchment

Suggested Citation

Bennett, Jeff and Greyling, Tertius, Protecting the Booroolong Frog in the Namoi Catchment: A Cost-Benefit Analysis (March 1, 2011). Crawford School Research Paper . Available at SSRN: https://ssrn.com/abstract=1907481 or http://dx.doi.org/10.2139/ssrn.1907481

Jeff W Bennett (Contact Author)

Crawford School of Public Policy ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

Tertius Greyling

Australian National University (ANU) - Crawford School of Public Policy ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

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