'Short Cut' Techniques to Incorporate Environmental Considerations into Project Appraisal: An Exploration Using Case Studies

Incorporating environmental and natural resource impacts into the benefit-cost analysis of projects in the developing world now relies on a solid body of theory and recommended techniques, but there remain concerns with how this is done in practice. One aspect arises when time and resource constraints make highly sophisticated analysis difficult or impossible. This paper discusses situations where analyses can be improved using relatively simple 'short cut' techniques that substitute for more formal analysis that cannot be undertaken realistically or provide an added perspective on project viability. Case studies are employed to illustrate the techniques, based upon the author's experience with appraisals at the World Bank, Food and Agriculture Organization (FAO) and the International Fund for Agricultural Development (IFAD). It is shown that short cut techniques can dramatically alter the outcome of an appraisal at relatively little cost. However, caution is advised since such techniques can be misused, so that the development of suitable protocols is desirable.