Cost-benefit Analysis Framework Research Articles

Economic analysis of crop protection strategies: comparing the value of increased fungicide inputs and crop genetic improvement in managing Ascochyta blight in Australian chickpeas.

Genetic improvement of crop varieties requires significant investment. Therefore, varieties must be developed to suit a broad range of breeding targets, such as yield and suitability to rainfall zones, farm management practices and quality traits. In the case of breeding for disease resistance, breeders need to consider the value of genetic improvement relative to other disease management strategies and the dynamics of pathogen genetic and phenotypic diversity. This study uses a benefit-cost analysis framework to assess the economic value of fungicide management and crop genetic improvement in disease resistance for Australian chickpea varieties. When assessing the likelihood of growers switching to new crop varieties with improved genetic resistance to disease, the simulation results reveal that adopting these varieties yielded higher net benefit values compared to implementing current fungicide strategies across all rainfall zones. On average, the increase in net benefit varied between 2.6% and 3.5%. Conversely, when we examined the scenario involving modifying the current fungicide strategy, we observed that, on average, switching from the current fungicide management strategy to one which involved additional fungicides was beneficial in about 73% of the cases. Our analysis reveals the importance of factors such as commodity prices, production costs, disease-related variables and risk aversion in determining the economic benefits of adopting new crop protection strategies. Furthermore, the research reveals the need for accessible information and reliable data sources when evaluating the benefits of new agricultural technologies. This would assist growers in making informed and sustainable disease management decisions. © 2024 The Author(s). Pest Management Science published by John Wiley & Sons Ltd on behalf of Society of Chemical Industry.

Distributional Impacts of Tobacco Excise Taxes in Serbia.

Numerous studies worldwide have investigated the impact of tobacco tax increase on household welfare, focusing on concerns regarding potential tobacco taxation regressivity and its effects on the poorest, whereas their scope was limited to the working population. To explore the effects of tax changes on household budgets, accounting for the retired population as well, we employed the modified Extended Cost-Benefit Analysis (ECBA) framework, assuming a 43.6% specific tax increase that fits the EU Tobacco Tax Directive recommendation of minimum EUR 90 excise taxes per 1,000 cigarettes. Our analysis encompassed changes in: 1) tobacco expenditure (accounting for price elasticities by income groups: low-, middle-, and high-income), 2) medical costs linked to smoking-related diseases (utilizing relative risk of morbidity/mortality and smoking-attributable fractions), 3) years of working life (considering the years of working life lost among the working population), and 4) years of pension receipt (accounting for the years of retirement life lost due the premature death). Under an assumed specific excise increase leading to a 22.4% retail tobacco price rise, the net gains in disposable household budgets would be 0.01% for high-income, 1.3% for middle-income, and 2.9% for low-income households. A tax increase would yield a progressive effect on income distribution, benefiting the most economically disadvantaged population thereby contributing to a more equitable income distribution. To effectively reduce tobacco consumption, subsequent smoking-related medical costs, and associated productivity and pension losses, it is recommended that Serbia implement a minimum 43.6% increase in the specific tobacco excise tax.

Cashing in: cost-benefit analysis framework for digital hospitals

BackgroundFor many countries, especially those outside the USA without incentive payments, implementing and maintaining electronic medical records (EMR) is expensive and can be controversial given the large amounts of investment. Evaluating the value of EMR implementation is necessary to understand whether or not, such investment, especially when it comes from the public source, is an efficient allocation of healthcare resources. Nonetheless, most countries have struggled to measure the return on EMR investment due to the lack of appropriate evaluation frameworks.MethodsThis paper outlines the development of an evidence-based digital health cost-benefit analysis (eHealth-CBA) framework to calculate the total economic value of the EMR implementation over time. A net positive benefit indicates such investment represents improved efficiency, and a net negative is considered a wasteful use of public resources.ResultsWe developed a three-stage process that takes into account the complexity of the healthcare system and its stakeholders, the investment appraisal and evaluation practice, and the existing knowledge of EMR implementation. The three stages include (1) literature review, (2) stakeholder consultation, and (3) CBA framework development. The framework maps the impacts of the EMR to the quadruple aim of healthcare and clearly creates a method for value assessment.ConclusionsThe proposed framework is the first step toward developing a comprehensive evaluation framework for EMRs to inform health decision-makers about the economic value of digital investments rather than just the financial value.

Combined biomass network design: A new integrated approach based on ArcGIS

In light of contemporary energy and environmental objectives, a pivotal transformation of the energy system, encompassing biomass energy, is imperative. A notable challenge in biomass energy facility layout planning is the trade-off between high-efficiency production and the associated investment costs. To harmonize energy efficiency with economy viability, a hybrid layout with the simultaneous construction of centralized and decentralized biomass energy facilities has emerged as a crucial strategic solution. However, the delineation methods for these two layouts lack explicit data support. This study established a population density threshold (PDT) suitable for selecting the distributed layout and employed population density as the criterion for delineating the two layouts. Taking Fuxin City as an example, hybrid layout planning schemes were generated under different PDTs, and a cost and energy benefit analysis framework was developed for these schemes. The results indicated that the scheme with a PDT of 145 person/km2 exhibited the highest energy and economic comprehensive benefits. Compared to a single layout, the planning strategy proposed in this study could achieve nearly the same energy surplus level while saving an investment cost ranging from 2403.9 million CNY to 25,000.23 million CNY. The findings are applicable to other regions with similar conditions, and the analysis framework proposed in this study can be utilized in formulating biomass development strategies for other countries and regions.

A Cost-Benefit Analysis of Mandatory and Voluntary Corporate Disclosure

Disclosure is important for corporate financing and business activities, as explained by Signalling Theory and Principal-Agent Theory. Corporate disclosure can be divided into voluntary and mandatory. Driven by the pursuit of maximising economic benefits, companies are motivated to opt to disclose voluntarily, notwithstanding the self-interest of managers and the dilemma of free-riding reduces the incentives and role of such disclosures. This inherent limitation of voluntary disclosure mechanisms has catalysed the widespread adoption of mandatory disclosure requirements. However, a simplistic discussion of the advantages and disadvantages of voluntary versus mandatory falls short of providing a conclusion. To address this gap, this study incorporates a cost-benefit analysis framework from law and economics. The effectiveness of mandatory disclosure, conceptualized as a form of governmental intervention in economic activities, hinges on the balance between its implementation costs and the derived benefits. The value of mandatory disclosure is related to regulatory effectiveness, which in turn influences the costs borne by companies in meeting disclosure requirements and the challenges faced by investors in utilising disclosed information.

The Economics of Medication Safety: A Cost-Benefits Analysis Framework for Evaluating an Electronic Medication System.

Medication prescribing in paediatrics is complex and compounded by the need to provide age and weight related doses, and errors continue to be problematic. Electronic medication systems (EMS) can reduce errors through dosing calculators and computerised decision support. However, evidence on costs and benefits of these systems is limited, particularly in paediatric hospitals. This paper presents the development of a cost-benefit analysis (CBA) framework to assess the impact of an EMS implementation in a paediatric tertiary hospital. An innovative component of the framework is the incorporation of the impact of the effects of the EMS for both the health system as well as for patients and their wider family networks, allowing a net social benefit assessment. We describe the impact of non-clinical out-of-pocket costs of admission and use discrete choice experiments to measure both medication related harm and the importance of medication safety to families and members of the community.

Assessment of Cost Benefit Analysis of Implementing Sustainable Practices for Construction Organisational Performance in Abuja, Nigeria

There is growing need to improve the implementation of sustainable construction in Nigeria. The awareness of the costs and benefits of sustainable construction is a fundamental principle underlying the implementation. This study assessed the economic viability and societal impact of implementing sustainable development practices in the construction industry in Abuja, Nigeria. Through a comprehensive Cost Benefit Analysis (CBA) framework, the research investigated the long-term costs and benefits associated with sustainability practices in building construction. Data collection was done using mixed method approach. Corelational analysis was use to analyse data of existing datasets on economic indicators, environmental parameters, and social statistics. The study revealed a dichotomy in the construction professionals' stance toward sustainable development, with a high level of awareness but a disparity in actual implementation. The Relative Importance Index (RII) findings emphasize the importance of indoor ventilation, energy-efficient systems, and structured construction waste management. Findings from the research recommend deepening the awareness levels of the long term benefits associated with sustainable construction among relevant stakeholders. The research contributes to addressing the gap between booming construction activities in Abuja and sustainable construction practices, aiming to create a more environmentally friendly, economically viable, and socially responsible construction industry.

Effectiveness of 4D/5D Scheduling in Planning for Delay Reduction in Construction Projects

Construction projects globally are frequently plagued by chronic issues such as delays and cost overruns. This study examined the feasibility of incorporating 4D (3D + time) and 5D (3D + time + cost) scheduling methodologies in construction planning with the aim of enhancing project efficiency. This study conducted an examination of the advantages associated with increased visualisation, improved task sequencing, proactive delay detection, optimised resource allocation, and integrated cost control while utilising 4D/5D building information modelling (BIM). The implementation of 4D/5D techniques has resulted in reductions in delays ranging from 15% to 50%, as evidenced by global case studies. The present study employed a cost-benefit analysis framework to assess hypothetical projects, aiming to quantify possible savings in terms of time and money. The findings reveal a decrease of 190 days and 22.4 million PKR, respectively, in these two dimensions. The adoption of 4D/5D BIM resulted in a notable increase in stakeholder satisfaction, with ratings improving from 2.6 to 4.2 out of 5. The study's findings indicate that, despite encountering several challenges, the use of 4D/5D scheduling in the Pakistani construction sector yields notable improvements in efficiency and benefits for stakeholders. The recommendations encompass the development of standardised data, software with interoperability capabilities, training programs, and collaborative initiatives within the industry. These measures are crucial for the successful implementation of 4D/5D Building Information Modelling (BIM). Additional investigation might examine the long-term return on investment, the use of these techniques in infrastructure projects, and comparison assessments with traditional methods.

Unified life-cycle cost–benefit analysis framework and critical review for sustainable retrofit of Canada's existing buildings using mass timber

This paper investigates the possibilities and challenges of using mass timber as a sustainable alternative for retrofitting existing buildings in Canada. To create the knowledge foundation on which to devise a holistic framework tailored to the specific characteristics of Canada's built environment, a detailed analysis of the types, geographical distribution, structural, and energy features of the local building stock is first presented. Then, previous strategies for enhancing and upgrading existing buildings with engineered timber are reviewed, classified, and evaluated. Finally, to explore economic and environmental implications, a detailed assessment of available life-cycle cost–benefit analysis approaches is conducted alongside their adaptation to Canada's building context. The findings of this paper can inform policymakers, builders, and designers in developing more sustainable building retrofit practices, design, and regulations, in line with Canada's efforts toward net zero emissions.

In-Depth Appraisal of Bus Transport Services for Sustainability Performance: A Cost–Benefit Analysis Approach

Public transport is arguably considered the backbone of today’s urban mobility ecosystem and is generally regarded as an important element of the sustainable mobility paradigm. As systems, they comprise vast societal investment owing to the infrastructures and operations required to provide the designated service. As projects, public transport systems have financial, societal, and environmental impacts that ought to be assessed through the scope of sustainability. Through sustainability, future generations’ financial, societal, and environmental needs are not compromised to meet the present generation’s needs. Thus, sustainability assessments can assist decision makers in perceiving the impacts and implications of an existing or under-consideration system on society and deciding on corrective actions. For the case of public transport systems, such assessments can assist in evaluating the expenditure distribution of the system and suggest actions that could maximize welfare gains under financial, social, and environmental criteria. Within this scope, the current paper proposes a methodological framework for unraveling transport systems’ sustainability to reveal their spatiotemporal dependencies. The study proposes a cost–benefit analysis framework where a public transport system is segmented and assessed into three levels: stops, lines, and administrative areas. Stop and line levels incorporate essential characteristics allowing their independent evaluation. The assessment of administrative areas aggregates characteristics from previous levels, spatially distributing the public transport system’s evaluation. By incorporating additional sociodemographic data, the administrative area level’s assessment links the evaluated transport system to societal characteristics, enhancing the decision maker’s perspective. The framework is showcased with Nicosia’s public bus transport system.

On-Demand Autonomous Vehicles in Berlin: A Cost–Benefit Analysis

The technological development of autonomous vehicles (AVs) challenges their economic relevancy. Are AVs worth it? We adapted the cost–benefit analysis framework to the case of AV services. The appraisal methodology was applied to the introduction of an on-demand AV service in Berlin, simulated through MATSim, an agent-based model. The introduction of AVs in a dense urban environment would generate more pressure on the road network. This would cause private car users to experience longer travel times, resulting in a consumer surplus loss that would not offset the new AV users’ benefits. In one configuration, a stop-based routing service appeared to generate fewer externalities (e.g., congestion, emissions, accidents) and would be cheaper to operate than door-to-door routing. Another configuration assumed that private cars were banned. In that case, the consumer surplus significantly decreased, AV services were not able to absorb the entire demand, and the shares of other modes increased. However, the externalities were significantly reduced. Finally, in an urban environment where on-demand AVs were added to the available modes, the social impact was negative for all economic agents, with heterogeneity apparent on the impacts of the different externalities. This would benefit some travelers but would also involve additional congestion. In that case, a stop-based routing seemed preferable (but still negative) to a door-to-door one. Further works discussing the introduction of AVs into an urban environment should focus on line-based options such as automated bus services.

A Cost–Benefit Analysis Framework for Power System Resilience Enhancement Based on Optimization via Simulation Considering Climate Changes and Cascading Outages

Achieving a good level of resilience to extreme events caused by severe weather conditions is a major target for operators in modern power systems due to the increasing frequency and intensity of extreme weather phenomena. Moreover, regulatory authorities are pushing transmission and distribution operators to prepare resilience plans suitably supported by Cost–Benefit Analyses (CBAs). In this context, this paper proposes a CBA framework based on Optimization via Simulation (OvS) for the selection of the optimal portfolio of resilience enhancement measures. Starting from a comprehensive set of candidate grid hardening and operational measures, the optimal mix is identified by applying a novel two-step procedure based on an efficient application of the generalized pattern search heuristic technique. Risk indicators for the CBA are quantified, accounting for probabilistic models of climate changes. Moreover, the potential cascading outages due to multiple component failures provoked by extreme events are simulated on selected scenarios. The examples carried out on an IEEE test system show the effectiveness of the approach in identifying the best portfolio of resilience enhancement measures depending on climate change projections and costs of the measures, while the application to the model of a large portion of the Italian EHV transmission system demonstrates the practicability of the approach in real-world studies to support operators in different power system management phases, from planning to operation.

Cost-benefit analysis framework for utility-scale solar energy development: a life cycle approach

One of the policy options for sustainable urban and regional development is the development of renewable energy by developing utility-scale solar energy. The development of utility-scale solar energy contributes to the improvement of social welfare such as the production of electrical energy and the reduction of greenhouse gas emissions. On the other hand, the development of utility-scale solar energy can have a negative impact such as natural landscape change and solid waste. The cost-benefit analysis method can be used to analyze whether the development of utility-scale solar energy improves social welfare. Previous studies have not developed a cost-benefit analysis framework based on a comprehensive life cycle approach. This article closes this knowledge gap. This article aims to develop a comprehensive utility-scale solar energy cost-benefit analysis framework. This article critically reviews the previous literature on the topic of cost-benefit analysis of utility-scale solar energy. Finally, this article proposes an analytical framework and some further research agenda.

Are Aquavoltaics Investable? A Framework for Economic and Environmental Cost-Benefit Analysis

Aquaculture has long been a significant industry in Taiwan, contributing significantly to the country’s GDP through both exports and domestic consumption. However, certain aquaculture practices have faced criticism due to their heavy groundwater usage, resulting in environmental damage such as land subsidence in the southwestern region of Taiwan. In order to change the industry’s negative environmental image and achieve the ambitious targets set by the Taiwanese government, including 20 GW of solar photovoltaic power by 2025 and net-zero carbon emissions by 2050, the utilization of aquaculture lands, particularly aquaculture ponds, has emerged as a promising option for solar power development. As the government promotes the symbiosis of aquaculture and solar PV power to attain its renewable energy goals, various stakeholders have engaged in discussions surrounding this approach. Consequently, it is crucial to assess the costs and benefits of such integrated practices from both economic and environmental perspectives, as it will play a pivotal role in shaping the future of the industry. A comparative analysis reveals that an aquaculture–electricity symbiosis with a capacity of 227 MW can further reduce carbon emissions by approximately 150,393.6 tons of CO2e per year, along with reductions of 56.8 tons/year of SOx, 82.3 tons/year of NOx, 3.7 tons/year of PM2.5, and 4.6 tons/year of PM10. These environmental benefits are equivalent to approximately TWD 7626.43 million annually. (Note: CO2e refers to carbon dioxide equivalent, SOx refers to sulfur oxides, NOx refers to nitrogen oxides, PM2.5 refers to fine particulate matter, and PM10 refers to particulate matter with a diameter of 10 μm or less).

Comparative benefit-cost analysis for a resilient industrial power plant building with isolation system and energy dissipating devices

ABSTRACT While the use of innovative seismic control strategies has become widespread in industrial plants, assessment of benefits derived from these measures in a quantifiable form can significantly contribute to a more rational risk-informed decision-making of essential infrastructures. In this paper, a benefit–cost analysis is used to examine three retrofit design schemes of an actual thermal power plant building equipped with different seismic control systems, i.e. buckling-restrained brace (BRB), the hybrid shape memory alloy-buckling restrained brace (SMA-BRB), and the partial mass isolation of heavy industrial equipment. The original design scheme having concentrically braced frames as lateral resisting systems is considered as a benchmark model for comparison purposes. For each mitigation alternative, the benefits against seismic effects were quantified in terms of repair cost and recovery time. The results showed that the retrofit system using SMA-BRB leads to the best performance achieving average reduction in residual drift, peak story drift, resilience index, repair time, and average annual loss by 71%, 27%, 48%, 83%, and 89% compared to the original system, respectively. The proposed benefit–cost analysis framework for industrial power plant buildings can be considered as a practical approach of supporting decision-making for non-technical stakeholders and motivating practicing engineers.

The evolutionary mechanism of haze collaborative governance: novel evidence from a tripartite evolutionary game model and a case study in China

The topic of haze collaborative governance has become a hot policy issue attracting worldwide attention. However, existing studies do not pay enough attention to haze collaborative governance in the process of central environmental protection inspection (CEPI). This paper employs a tripartite evolutionary game model to explore the evolutionary mechanism of haze collaborative governance among China’s central and local governments and verifies its findings further through a case study of CEPI for air pollution in Beijing-Tianjin-Hebei and surrounding regions. The results show that haze collaborative governance is mainly affected by the performance evaluation system, policy implementation cost, clean government construction, industrial transfer trend, fiscal subsidy, environmental inspection cost, environmental accountability, and public participation. The implementation of CEPI is conducive to haze collaborative governance among central government and local governments. To promote the full implementation of air pollution control policies, the local governments need to optimize the performance evaluation system by considering economic development and environmental protection, reduce policy implementation costs by cost-sharing, and strengthen clean government construction by preventing rent-seeking corruption. In addition, the local governments need to strengthen the coordination of cross-regional industrial development and optimize fiscal subsidies to promote ecological compensation and transfer payments. For supervising the policy implementation of local governments thoroughly, the central government needs to reduce the environmental inspection cost using the evaluation framework of cost-benefit analysis, strengthen the haze governance accountability through normalizing supervision, and broaden the public’s external supervision channels. It is vital to take effective measures to carry out haze collaborative governance, providing a useful experience for developing countries.

Economic and financial aspects of drinking water supply: a project development guideline

Water is one of the most important elements of life, and there is no alternative for human beings. Faced with limited water and financial resources, public policymakers are trying to find new ways of providing society with an appropriate quality of water by attracting private investors. This paper attempts to answer the question of how water sector projects can be developed with private investments to deliver desired economic and social benefits to society. From this perspective, the paper sets the objective of designing a cost–benefit analysis framework that compares the possible deployment models and analyses the optimal solutions that achieve both optimal economic and financial outcomes and can be instrumental in decision making for water sector projects. As a result, the levels of the economic internal rate of return for public decision makers and financial internal rate of return for private investors are examined.

A Cost–Benefit Analysis Framework for City-Scale Seismic Retrofitting Scheme of Buildings

To improve urban seismic resilience, a reasonable seismic retrofitting scheme for buildings is required. Urban cities contain a large number of buildings, making it challenging to precisely assess the seismic retrofitting benefits of each one. This paper proposes a cost–benefit assessment framework that takes into account seismic risk, seismic damage, retrofit costs, economic losses, and cost–benefit analyses for the city-scale seismic retrofitting of buildings. The proposed framework adopts readily available building parameters, including the number of stories, construction year, total height, structural type, floor area, and response spectrum for structural design. It makes use of empirical seismic retrofitting models and a newly developed story-level seismic loss assessment method combining the physical mechanism and empirical loss ratios. For city-scale cost–benefit analysis, the framework can strike a good balance between data accessibility, computational workload, level of result details, and result accuracy. It can adapt nimbly to earthquake-induced indirect losses and budgetary constraints on retrofitting. The analysis of 98,618 buildings in Xi’an city, China, is carried out. The findings indicate that, when potential indirect economic loss ratios of buildings are neglected, the retrofitting benefits of unreinforced masonry and old buildings are the most significant.

Incorporating ecosystem services value into the optimal development of hydropower projects

Using an efficient cost-benefit analysis framework and optimization model is essential for the proper planning of hydropower projects. The implementation of hydropower has different effects on the environment, which undermine the delivery of ecosystem services. The change in ecosystem services is often not included in hydropower projects' economic analysis and planning. Understanding the quantity of ecosystem services and their associated economic value is an important step to protection of ecosystems and provides an opportunity to enter ecosystem services into economic relations. Thus, the main purpose of this study is to investigate how to incorporate ecosystem services into project optimization models and decision-making. So, an attempt is made to quantify these environmental effects to develop a comprehensive simulation-optimization model and achieve a more sustainable development of hydropower projects in the system. The costs and benefits from the environmental economy include hydropower advantages and loss of ecosystem services added to the objective function. The results show that considering the environmental affects the NPV and decision variables such as the normal water level and installed capacity. The economic value of negative environmental impacts was more than its advantages and caused about 27% and 14.5% decrease in NPV and energy generation of the HPP project.

Valuing Natural Ecosystems: The Case of National Park Kotychi-Strofilia in Peloponnese, Greece

Ecosystem services are among the environmental goods that are not directly included in the market mechanism, hindering their integration in the framework of cost-benefit analysis. To fill this gap, environmental valuation techniques can provide useful insights as regards the economic value of ecosystems, facilitating their integration in decision-making processes. The present work values an extremely sensitive and protected ecosystem in the Southern Peloponnese, namely the National Park of Waterfalls of Kotychi – Strofilia, which comprises one of the largest pine forests in Europe (Strofilia) and several important wetlands and lagoons (Kotychi). The Contingent Valuation Method (CVM) has been implemented for valuing the ecosystem services of the park in question and depicting how the results of the analysis can be used for decision making. The analysis was supported by a survey of the residents of the wider area, through the completion of an appropriately designed questionnaire, with a view to estimate the expenditures that are socially acceptable to be allocated for its restoration and protection. The results showed that the mean willingness to pay per household to protect the national park under consideration ranges between 5.5-9.5 EURs/semester for a period of 4 years, leading to a total value of the ecosystems in question of 14.7-25.5 million EURs.