IDEAS home Printed from https://ideas.repec.org/a/spr/jecstr/v10y2021i1d10.1186_s40008-021-00240-w.html
   My bibliography  Save this article

Impact and cost–benefit analysis: a unifying approach

Author

Listed:
  • Pasquale Lucio Scandizzo

    (Università Degli Studi Di Roma “Tor Vergata”)

Abstract

This paper presents a methodology to integrate cost–benefit analysis and SAM-CGE-based impact evaluation. While the two types of analysis have developed in parallel and without a clear connection, there is growing consensus that the two approaches should be integrated for complex investment projects, since their economic evaluation cannot rely solely on the partial equilibrium assumptions of cost–benefit (CB) analysis. Unlike CB analysis, impact evaluation looks at the economy as a complete system of interdependent components (industries, households, investors, government, importers, exporters). By integrating project accounting into a SAM-CGE framework, the methodology developed presents several properties that make it fit to the purpose of providing a reliable assessment of project contribution to the economy.

Suggested Citation

  • Pasquale Lucio Scandizzo, 2021. "Impact and cost–benefit analysis: a unifying approach," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-13, December.
    • Handle: RePEc:spr:jecstr:v:10:y:2021:i:1:d:10.1186_s40008-021-00240-w
    DOI: 10.1186/s40008-021-00240-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40008-021-00240-w
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40008-021-00240-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Darío Debowicz & Paul Dorosh & Hamza Haider & Sherman Robinson, 2013. "A Disaggregated and Macro-consistent Social Accounting Matrix for Pakistan," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 2(1), pages 1-25, December.
    2. Martin L. Weitzman, 1976. "On the Welfare Significance of National Product in a Dynamic Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(1), pages 156-162.
    3. Eisner, Robert, 1988. "Extended Accounts for National Income and Product," Journal of Economic Literature, American Economic Association, vol. 26(4), pages 1611-1684, December.
    4. Krisztián Koppány, 2017. "Estimating Growth Contributions by Structural Decomposition of Input-Output Tables," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 67(4), pages 605-642, December.
    5. Martin L. Weitzman, 1988. "Consumer's Surplus as an Exact Approximation When Prices Are Appropriately Deflated," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 103(3), pages 543-553.
    6. Scandizzo, Pasquale Lucio & Ferrarese, Cataldo, 2015. "Social accounting matrix: A new estimation methodology," Journal of Policy Modeling, Elsevier, vol. 37(1), pages 14-34.
    7. Onil Banerjee & Martin Cicowiez & Renato Vargas & Mark Horridge, 2019. "The SEEA-Based Integrated Economic-Environmental Modelling Framework: An Illustration with Guatemala’s Forest and Fuelwood Sector," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(2), pages 539-558, February.
    8. Federico Perali & Pasquale Lucio Scandizzo (ed.), 2018. "The New Generation of Computable General Equilibrium Models," Springer Books, Springer, number 978-3-319-58533-8, March.
    9. Richard Stone, 1951. "Simple Transaction Models, Information and Computing," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 19(2), pages 67-84.
    10. Hartwick, John M., 1990. "Natural resources, national accounting and economic depreciation," Journal of Public Economics, Elsevier, vol. 43(3), pages 291-304, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alejandro Caparrós & Pablo Campos & Gregorio Montero, 2003. "An Operative Framework for Total Hicksian Income Measurement: Application to a Multiple-Use Forest," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(2), pages 173-198, October.
    2. Lars Hultkrantz, 1992. "National account of timber and forest environmental resources in Sweden," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(3), pages 283-305, May.
    3. Toman, Michael & Pezzey, John C., 2002. "The Economics of Sustainability: A Review of Journal Articles," RFF Working Paper Series dp-02-03, Resources for the Future.
    4. Mardones, Cristian & del Rio, Ricardo, 2019. "Correction of Chilean GDP for natural capital depreciation and environmental degradation caused by copper mining," Resources Policy, Elsevier, vol. 60(C), pages 143-152.
    5. Kirk Hamilton, 2003. "Sustaining Economic Welfare: Estimating Changes in Total and Per Capita Wealth," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 5(3), pages 419-436, September.
    6. Dasgupta, Partha, 2000. "Valuation and Evaluation: Measuring the Quality of Life and Evaluating Public Policy," RFF Working Paper Series dp-00-24, Resources for the Future.
    7. Figueroa B., Eugenio & Orihuela R., Carlos & Calfucura T., Enrique, 2010. "Green accounting and sustainability of the Peruvian metal mining sector," Resources Policy, Elsevier, vol. 35(3), pages 156-167, September.
    8. Barbier , Edward B., 2020. "From Limits to Growth to Planetary Boundaries: The Evolution of Economic Views on Natural Resource Scarcity," 2020 Conference (64th), February 12-14, 2020, Perth, Western Australia 305259, Australian Agricultural and Resource Economics Society.
    9. Edward B. Barbier, 2017. "Natural Capital and Wealth in the 21st Century," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(3), pages 391-405, June.
    10. Knapp, Keith C., 2006. "Recursive Sustainability: Intertemporal Efficiency and Equity," 2006 Annual meeting, July 23-26, Long Beach, CA 21472, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Rubio, M. del Mar, 2004. "The capital gains from trade are not enough: evidence from the environmental accounts of Venezuela and Mexico," Journal of Environmental Economics and Management, Elsevier, vol. 48(3), pages 1175-1191, November.
    12. Charles R. Hulten & Paul Schreyer, 2010. "GDP, Technical Change, and the Measurement of Net Income: the Weitzman Model Revisited," NBER Working Papers 16010, National Bureau of Economic Research, Inc.
    13. Eugenio Figueroa B. & Enrique Calfucura T., 2002. "Depreciación del Capital Natural, Ingreso y Crecimiento Sostenible: Lecciones de la Experiencia Chilena," Working Papers Central Bank of Chile 138, Central Bank of Chile.
    14. Geir B. Asheim, 2003. "Green national accounting for welfare and sustainability:A Taxonomy Of Assumptions And Results," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(2), pages 113-130, May.
    15. Dasgupta, Partha, 2000. "Valuation and evaluation: measuring the quality of life and evaluating policy," LSE Research Online Documents on Economics 6657, London School of Economics and Political Science, LSE Library.
    16. Nick Hanley & Louis Dupuy & Eoin McLaughlin, 2015. "Genuine Savings And Sustainability," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 779-806, September.
    17. Tsur, Yacov & Zemel, Amos, 2006. "Welfare measurement under threats of environmental catastrophes," Journal of Environmental Economics and Management, Elsevier, vol. 52(1), pages 421-429, July.
    18. Andrés Gómez-Lobo E., 2001. "Sustainable development and natural resource accounting in a small open economy: a methodological clarification," Estudios de Economia, University of Chile, Department of Economics, vol. 28(2 Year 20), pages 203-216, December.
    19. Partha Dasgupta & Karl-Goran Maler, 1998. "Decentralization Schemes, Cost-Benefit-Analysis, and Net National Product as a Measure of Social Well-Being," STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers 12, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    20. Eugenio Figueroa, B. & Enrique Calfucura, T., 2003. "Growth and green income: evidence from mining in Chile," Resources Policy, Elsevier, vol. 29(3-4), pages 165-173.

    More about this item

    Keywords

    Social accounting matrix (SAM); Computable general equilibrium models (CGE); Project; Evaluation; Impact analysis; Cost; Benefit analysis;
    All these keywords.

    JEL classification:

    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jecstr:v:10:y:2021:i:1:d:10.1186_s40008-021-00240-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.