17 - Social or indirect costs of public utility works

Abstract

Civil engineering project appraisal is generally concerned with determining both the direct costs and the benefits of a proposed scheme to ascertain the alternatives that are most likely to produce the greatest public benefit for the lowest cost. An “economic value” could be assigned to environmental benefits or disbenefits, based on the cost that the public is prepared to pay to have them preserved or removed. However, in many cases, there is either insufficient data presently available or the techniques are too cumbersome and time consuming for them to be used routinely by either highway authorities or utility companies to assess the magnitude of social and environmental costs. Relatively simple techniques for estimating social costs are required. The social costs arising out of any public utility works are not borne by the promoting authority, but fall directly or indirectly onto the public at large. They may be actual cash losses or less tangible losses such as environmental damage or loss of personal amenity.