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Sustainability, Social Discount Rates and the Selection of Project Procurement Method

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  • Athena Roumboutsos

Abstract

The notion of sustainability has lead to the evaluation of public projects in terms of wider socio-economic and environmental benefits. The Cost Benefit Analysis and its respective, Social Discount Rate (SDR), is of crucial importance, especially when the advantages of private financing are to be demonstrated in comparison with the alternative traditional procurement of works and services. The SDR seen as a measure of a country’s value of future costs and benefits is related to the notion of promoted sustainability. The impact of smaller and declining SDRs on project selection is investigated, and a conceptual formulation concerning the selection of the project procurement method is presented. The modelled formulation will assist central and local governments in assessing projects and the potential benefit of private financing. Copyright International Atlantic Economic Society 2010

Suggested Citation

  • Athena Roumboutsos, 2010. "Sustainability, Social Discount Rates and the Selection of Project Procurement Method," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(2), pages 165-174, May.
    • Handle: RePEc:kap:iaecre:v:16:y:2010:i:2:p:165-174:10.1007/s11294-009-9250-7
    DOI: 10.1007/s11294-009-9250-7
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    Cited by:

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    2. Francisco Alcon & Julia Martin-Ortega & Francisco Pedrero & Juan Alarcon & M. Miguel, 2013. "Incorporating Non-market Benefits of Reclaimed Water into Cost-Benefit Analysis: A Case Study of Irrigated Mandarin Crops in southern Spain," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(6), pages 1809-1820, April.
    3. Martin-Ortega, Julia & Perni, Angel & Jackson-Blake, Leah & Balana, Bedru B. & Mckee, Annie & Dunn, Sarah & Helliwell, Rachel & Psaltopoulos, Demetris & Skuras, Dimitris & Cooksley, Susan & Slee, Bill, 2015. "A transdisciplinary approach to the economic analysis of the European Water Framework Directive," Ecological Economics, Elsevier, vol. 116(C), pages 34-45.
    4. Penyalver, Domingo & Turró, Mateu & Zavala-Rojas, Diana, 2018. "Intergenerational perception of the utility of major transport projects," Research in Transportation Economics, Elsevier, vol. 70(C), pages 97-111.

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    More about this item

    Keywords

    Sustainability; PPP; Cost-benefit analysis; Social discount rate; L33; O10; P60;
    All these keywords.

    JEL classification:

    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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