Abstract

This extends the methodology of Dasgupta, Marglin and Sen (1972) by introducing and formulating the social cost of financial resources and taking it into account with the other social costs. Applying the modified methodology, a social cost benefit analysis is developed for the Rion-Antirrion suspension bridge in Greece. The results indicate that the project has a negative net present value and should be rejected. Then the additional income generated to the region of Epirus is quantified by utilising input-output analysis, and the regional redistribution objective in the project's evaluation is taken into account. The net present value becomes positive when society attributes a ‘weight’ for regional income redistribution above a specific value.

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