Cost-benefit Analysis Approach Research Articles

Examining the cost-effectiveness of fire service prevention and youth engagement activities

Many fire services have expanded their fire prevention focus to include other community-based risks, such as water safety, road safety, and youth engagement. However, to date, little research focus has been directed to examining the economic and social value of these wider prevention activities and whether they represent a wise resource investment. Further work is also needed to establish the reliability of existing fire prevention economic models. The following study adopts a cost-benefit analysis approach to economically evaluate the range of prevention activities delivered by one fire service in England (Merseyside), which focus on accidental dwelling fires, road, water, and arson-related incidents, and promoting youth engagement. Data was accessed from open sources and a systematic search of existing economic models and fire service records. Cost-benefit ratios demonstrated that the economic value provided by prevention investment was five and 21 times the investment for accidental and deliberate fires. Social value provided by youth engagement activities ranged from two to 13 times the investment for the Beacon Project and Fire Cadets. Findings pose important implications for informing fire sector discussions regarding the resourcing of prevention to address community risks, and for improving data collection to robustly model the economic and social value of activities.

Direct Economic Short-Term Impact of Public Spending in Sporting Events: The Case of the Elite and Senior Badminton World Championships

Sporting events are drivers of urban life and have the potential to bring substantial short-term economic benefits to the host region by attracting visitor spending. This study has analyzed the impact generated by the 2021 Senior and Elite Badminton World Championships that took place in Huelva, Spain. The objectives are (i) determine the economic impact and determining factors; and (ii) the impact on the development of badminton in the region. For this purpose, the study used the Cost-Benefit Analysis approach to estimate the cashflows through a survey applied to both events. The results reflect a direct positive impact on the region’s economy, although the results are not as satisfactory at the sporting level. The article contributes to the few mid-range event studies on a minority sport in a city with a highly developed tourism sector.

Blockchain Technology in International Trade: A Catalyst for Efficiency and Revenue Generation

Background and Aim: The advent of blockchain technology has brought about a significant transformation in the realms of finance and international trade, primarily through the implementation of a decentralized ledger system for conducting transactions. The present study aims to assess the efficacy and economic advantages of employing blockchain technology in the context of international trade financing. Specifically, it focuses on the potential decrease in transaction time and cost savings that Chinese domestic banks may experience as a result of adopting this technology. Materials and Methods: This research employs a quantitative methodology to assess the efficacy of blockchain technology in the context of international trade, with a specific emphasis on banking professionals. The study utilizes a cost-benefit analysis approach to maximize advantages and minimize drawbacks. Results: The research revealed that the implementation of blockchain technology has the potential to improve operational efficiency and mitigate transaction risks. However, it is important to note that this comes at the expense of increased costs, rendering it unsuitable for widespread adoption due to its unfavorable net benefit. Conclusion: The findings of the study indicate that the use of blockchain technology leads to enhanced operational efficiency and decreased transactional risks. However, it is important to note that this implementation also entails elevated costs, rendering it impractical for widespread adoption due to its unfavorable net benefit. The report posits that the advantages of operational efficiency offered by blockchain technology are overshadowed by the accompanying expenses, thereby advocating for a prudent approach to its implementation in the realm of international trade. The recommendations encompass many strategies such as the implementation of trial projects, conducting thorough cost-benefit analyses, using hybrid techniques, ensuring ongoing monitoring, and maintaining strict adherence to legal regulations.

Towards the cost-effective design of stormwater infiltration trenches: a hybrid model integrating cost–benefit analysis and an analytical stochastic approach

This study proposes a hybrid analytical model integrating two cost–benefit analysis approaches and an analytical stochastic approach for the proper design of infiltration trenches.

Una historia trans sexenal de dispendio de recursos sociales: El Tren Interurbano México-Toluca

The general objective of this paper is to make an ex-post evaluation of the Mexico-Toluca Interurban Train project (TIMT) more than nine years after the beginning of its construction stage. The present study is based on the cost-benefit analysis approach, through which some analysis scenarios have been built and whose results are contrasted with the official project evaluations. The present research has focused on the analysis of the TIMT as a microcosm of the scarce efficiency of public investment in Mexico, resulting in a waste of social resources. According to the results of the study, the combination of delays and cost overruns (186% in nominal terms, 114% in real terms, and 90% in dollars) has configured a project (across two Federal Government Administrations) with negative social profitability, with losses valued at more than 550 million dollars, placing it in the most problematic quartile of train projects in the world.

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.

Compliance with and enforcement mechanism of labor law: cost-benefits analysis from employers’ perspective in Bangladesh

This manuscript offers a qualitative exploration aimed at proposing effective strategies for enhancing compliance with and enforcement of labor laws in Bangladesh by diminishing the incentives for non-compliance. The study relies on primary data obtained from statutes, legal decisions, and secondary data sourced from scholarly articles, books, and book chapters, among others. Employing a cost-benefit analysis approach from the employers’ perspective, the study contends that showcasing the superior costs associated with violating labor laws, in comparison to the benefits gained, will incentivize employers to prioritize compliance to safeguard their interests. To this end, the research puts forth eight distinct techniques or mechanisms to curtail the benefits derived from disregarding labor laws. These strategies are thoughtfully organized into two categories, namely “increasing the likelihood of self-enforcement” and “supporting by other actors.” The proposed techniques for enhancing compliance with and enforcement of labor laws in Bangladesh hold significant potential in benefiting key stakeholders, policymakers, and practitioners in the field. Furthermore, the study’s findings carry valuable implications for other developing countries in the South Asian region, given their similar socio-economic and cultural contexts.

Development of a lateral flow immunoassays-based method for the screening of ractopamine in foods and evaluation of the optimal strategy in combination of screening and confirmatory tests

Ractopamine has been authorized as a feed additive and permitted in animal husbandry. With the establishment of the regulation to limit the concentration of ractopamine, a rapid screening method for ractopamine is urgently needed. Additionally, how to combine the screening and confirmatory tests of ractopamine is also critical to maximizing the efficiency of testing. Here, we developed a lateral flow immunoassays-based method for the screening of ractopamine in foods and proposed a cost-benefit analysis approach to optimize cost allocation between screening and confirmatory tests. After verifying the analytical and clinical performance of the screening method, a mathematical model was established to calculate the screening and confirmatory test results with various parameter settings, such as cost allocation, false-negative tolerance, and total budget size. The developed immunoassay-based screening test could successfully distinguish gravy samples with ractopamine levels over and lower than maximum residue limits (MRL). The area under curve (AUC) value of receiver operating characteristic (ROC) curve is 0.99. For the cost-benefit analysis, mathematical simulation indicated that when the samples are allocated to screening and confirmatory tests at the optimized cost allocation, the number of confirmed positive samples can increase by 26 times compared to the scenarios entirely relying on confirmatory testing. While conventional wisdom considers that screening should be carried out at low false-negative rates, such as 0.1%, our results indicated that the cutoff value of a screening test with a 20% false-negative rate at MRL could capture the maximum number of confirmed positive samples at a limited budget. Our work indicated that the participation of the screening method in ractopamine analysis and optimized cost allocation between screening and confirmatory tests could enhance the efficiency in detecting the positive samples, which provides a rational basis for decision-making in food safety enforcement for public health.

An Optimization Technique for Ranch Management

Water is a scarce resource; it is a vital resource in the production of crops for livestock that will directly impact supply chain costs. Many costs occur in poorly deployed irrigation systems that don’t fully utilize land potential, thereby, not produce the proper yield of crops for livestock. An irrigation system can not only reduce initial set up and maintenance costs but reduces land waste while increasing yield of dry matter feed. This research presents a cost benefit analysis approach to determine the practicability of installing an irrigation system onto 54 acres of ranch land by employing the use of linear programming. Specifically, by examining factors that impact costs and production, a generalized model was developed to better understand how this system works on any ranch. These results indicate by optimizing land to its fullest capacity for dry matter, one can then maximize profits generated. This research found the profitability of employing an irrigation system is beneficial even at lower production yields when compared to land with no irrigation system.

The economic value of green roofs: A case study using different cost–benefit analysis approaches

Green roofs (GRs) contribute to urban greening and adaptation to climate change and belong to a small group of measures that can be implemented even in densely built-up areas. Although the implementation of GRs has increased significantly in recent years, their implementation potential has not, for various reasons, been fulfilled in many places. Investors often lack information about the real value and feasibility of GRs. In this context, an economic assessment of GRs can address a wide range of costs and benefits and provide a clear economic argument for urban planning and decision-making. Cost–benefit analysis (CBA) is typically used to raise awareness of the positive impacts of GRs, but there is no unified approach, and its application differs across countries. As a range of approaches has been used, studies’ results cannot easily be compared. The current study aims to provide comparable information on the economic value of three already implemented GR projects using two alternative CBA approaches, namely those used in Czechia and Portugal. The results indicate that the monetarily expressed GR benefits are four to six times greater than the costs depending on the case study. Thus, applying different approaches to the same case study, even when the same data are input, can yield a difference in results of 13–106 percent. The economic value of GRs is affected by specific CBA assumptions regarding the economic assessment of aesthetics and other benefits and costs of GRs. By using case studies in Czechia we thus show that different methodologies lead to different results, explain the contrasting results in the literature and prove the need to develop a standard economic assessment method for GRs.

The Dilemma of Balancing Public Health and Economic Concerns: Benefit and Cost Analysis on China’s COVID-19 Policy Under Monte Carlo Simulation

This study explores the dilemma of balancing public health and economic concerns during a pandemic through a cost-benefit analysis approach in public economics. To estimate the impact of public health policies during an epidemic, this research innovatively applies the Monte Carlo simulation algorithm, using both top-down and bottom-up methods to avoid double counting. The study focuses on zero-clearance public health policy, analyzing the value of lives saved and the economic output decline of the society as a whole during the pandemic as the benefit and cost of preserving lives, respectively. Additionally, the study examines the decreased infected population and medical expenses gained through reductions in mortality due to public health policies, estimating the costs and expenses associated with COVID-19 infection and unemployment using a bottom-to-up method. The study concludes with a discussion of the limitations in data comprehensiveness and authenticity, as well as the particularities of public health policies based on political attributes.

Cost–Benefit Analysis of Unconventional Arterial Intersection Designs: Cairo as a Case Study

Due to their innovative treatment, Unconventional Arterial Intersection Designs (UAIDs) have been developed to alleviate congestion at conventional signalized intersections, in an effort towards the sustainable development of crowded capitals. A methodological framework for economic assessment, however, has not been investigated properly for such designs, particularly under mixed traffic environments. This article aims to outline a methodological framework that can be followed for the socio-economic assessment of such designs. A cost–benefit analysis approach was developed to figure out the different determinants of costs and benefits of an overpass interchange (as a widespread treatment) and two selected UAIDs (as alternative measures). The two studied UAID schemes in this article are Continuous Flow Intersection (CFI) and Restricted Crossing U-Turn (RCUT). Seeking credible results, a set of three signalized intersections in downtown Cairo, Egypt was selected as a proof-of-concept for the developed method. PTV-VISSIM, a simulation-based platform, was utilized to estimate the benefits gained by road users. Our research objectives were to identify, evaluate, and compare the economic feasibility of the different alternatives. Compared to the overpass intersection, we found that the CFI and RCUT designs ensure higher economic efficiency, while mitigating congestion at conventional signalized intersections under heterogeneous traffic conditions.

Cost to society from infiltration and inflow to wastewater systems

Water from infiltration and inflow to wastewater systems is an extensive problem causing costs to society in various ways. Comprehensive methods for supporting decisions on how to efficiently mitigate the problems in a sustainable manner are, however, missing today. This paper presents a novel risk-based model to assess the cost to society from infiltration and inflow to wastewater systems by monetising effects related to treatment of wastewater, pumping, combined sewer overflows, and basement flooding. The present value is calculated for a specified time horizon and discount rate, using a cost-benefit analysis approach. To acknowledge the various uncertainties, a probabilistic approach is applied where probability distributions represent the input variables. The model is shown to be applicable by illustrating its use in a case study area in Gothenburg, Sweden. Main results from the case study show that most of the costs are related to investments at the wastewater treatment plant and restoration due to basement flooding events. Sensitivity analyses show that the result is highly dependent on factors such as the volume of infiltration and inflow water, the share of basement flooding, and the discount rate. Using expert elicitation to quantify input data is also illustrated and shown to be a valuable method. The presented model fills an important research knowledge gap and will facilitate a more sustainable and comprehensive handling of water from infiltration and inflow.

Economic and emission reduction benefits of the implementation of eVTOL aircraft with bi-directional flow as storage systems in islands and case study for Canary Islands

This research paper presents a novel approach for cost-benefit analysis for the bi-directional functionality of eVTOL (Electric Vertical Take-Off and Landing) aircraft charging. eVTOL aircrafts represents an emerging aviation market that seeks to revolutionize mobility, both intra-city and inter-city, through an air transportation system for passengers based on safety, efficiency and accessibility on demand. In this research, an optimization based on genetic algorithms has been used to find the number of eVTOL vehicles which makes vehicle-to-grid services profitable for each of the electrical systems considered. This research discusses the impact that vehicle-to-grid eVTOL aircraft would cause, changing the current demand curve peaks and the economic benefits for eVTOL end users, power plant companies and system operator. The results show that there is an increase in the penetration of renewable energy sources, causing a reduction of approximately 4.6% in global emissions. In addition, the benefits obtained by the stakeholders considered in the system is greater than zero. The methodology considered in this research offers a new perspective for electrical systems to predict the demand of eVTOL aircraft, in specific territories, such as in the presented case study in the Archipelago of Canary Islands.

Probabilistic cost-benefit analysis for mitigating hydrogeological risks in underground construction

Leakage of groundwater into underground facilities can subsequently cause groundwater drawdown, subsidence and subsidence damages to the built-up environment. In order to reduce the risk of damage, measures to mitigate the risks must often be implemented. The aim of this paper is to describe and demonstrate a probabilistic cost-benefit analysis approach to assess the economic profitability of investing in different risk mitigation alternatives. Since underground construction is always associated with uncertainties, the analysis uses probability distribution functions for uncertain parameters and Monte Carlo simulations to quantify probabilities of damage and implementation costs. The proposed approach is exemplified with a case study, the road tunnel project Bypass (Förbifart) Stockholm in eastern Sweden, for which four risk mitigation alternatives were evaluated. In conclusion, the approach helps to highlight the economic effects of different risk mitigation approaches and constitute a transparent support for decisions on implementation of risk mitigation. For the case study, the analysis indicates that the implementation costs of ∼ 7000 MSEK (700 million EUR) for risk mitigation needed to fulfil the legal requirements, from the Swedish Land- and Environmental court, in the form of ambitious sealing strategies are disproportionate relative to the benefits of ∼ 50 MSEK (5 million EUR) gained in the form of reduced damage risk for the built-up environment. In other words, billions SEK of taxpayers' money are spent on unnecessary expenses to fulfill legal requirements without societal benefits. The novelty of the paper constitutes the coupling of models and combination of established methods for management of hydrogeological risks.

Assessing the Benefit Produced by Marine Protected Areas: The Case of Porto Cesareo Marine Protected Area (Italy)

The article focuses on the integrated environmental accounting model called ‘eValue’, developed for protected areas and applied in the research programme coordinated by the Italian Ministry of the Environment and aimed at implementing an environmental accounting system for Italian Marine Protected Areas (MPAs). eValue adopts a cost-benefit analysis approach. Financial accounting based on costs and revenues is integrated with environmental accounting, which reflects environmental costs and environmental revenues, i.e., environmental benefits. The environ-mental costs assess the impacts related to human activities in the MPA expressed by calculating the carbon footprint and the environmental benefits of the marine ecosystem services calculated by applying monetary valuation techniques. The values thus estimated flow into the annual flow account, where the value produced (or consumed) by the MPA is estimated by difference. The eValue model was applied to the Porto Cesareo MPA (Italy). eValue showed that the annual benefit-cost ratio reaches a value of 3.4. Furthermore, the ratio of net benefit to public funding is 3.7, completely covering the number of public transfers and thus summarizing the MPA overall value for money.

Performance of biogas plant analysis and policy implications: Evidence from the commercial sources

This study investigates the potential of biogas as a commercially viable alternative energy source in Pakistan due to her large agricultural base. The production of biogas is a source of utilizing enriched livestock manure resulting in smell reduction, village sanitation, and environmental improvement. The cost-benefit analysis approach is adopted to explore the empirical findings. The analysis is carried out on four different commercial biogas plants with capacities ranging from 20 to 200 m3 that have been erected in various parts of Pakistan, the majority in Punjab province due to their agricultural and animal capacity. Total inflows are calculated which include installation, administrative, operation, and maintenance costs. Although benefits extracted are examined in terms of monetary value. Meanwhile, it is concluded through quantitative assessment that 8 out of 9 plants are giving good returns, which can cater to the energy needs. Furthermore, it can be suggested that commercial use of biogas is feasible and profitable with an acceptable rate of returns with proper operating and feeding of the plant is essential for success. Therefore, training should be provided to agriculture and livestock farmers so that they can perform better in the development of biogas plants.

Pelatihan Penyusunan Proposal dan Analisis Biaya-Manfaat dalam Mendukung Pariwisata Olahraga di Dusun Gunung Ambawang

One of the government's efforts to achieve tourism development goals is through the development of tourist villages. Deras is one of the villages designated as a strategic tourism area, which was officially designated as a tourist village on April 10, 2021. The purpose of this activity is to increase understanding of tourism object managers and Tourism Awareness Groups (Pokdarwis) in preparing proposals and assessing program implementation and development of new tourist objects through a cost-benefit analysis approach. The training, which was attended by 15 participants, was held on Saturday, August 7, 2021, at Taman Wisata Alam Indah Lestari, which is located at Gunung Ambawang Hamlet, Sungai Deras Village, Kec. Pakedai Bay. All participants enthusiastically participated in this activity and their understanding increased significantly after attending the training. The results of mentoring participants showed that as much as 80% of participants were able to develop activity proposals and conduct cost-benefit analysis for the opening of new tourist objects. It can be said that in general this training activity ran smoothly and was able to increase participants' understanding in preparing activity proposals and applying cost and benefit analysis techniques for opening new tourist attractions.

A Cost-Benefit Analysis of a Group Memory Intervention for Healthy Older Adults with Memory Concerns.

This study examines whether memory intervention programs can mitigate health care costs. Research suggests these programs translate to a decreased intention of older adults who are worried about age-normal memory changes to seek traditional outlets for medical/psychiatric help. We employed a cost-benefit analysis approach to analyze the effectiveness of a memory intervention program within Ontario. We leveraged estimates of decreased intentionality to seek physician care following a community-based memory intervention with physician billing profiles to calculate the potential cost savings to the province's health care system. The intervention studied was found to reduce provincial health care spending by $6,094 per program group. This amount exceeds $121.25 in direct costs per attendee associated with administering five program sessions. This analysis justifies further research on how community-based memory and aging programs can offer low-cost solutions to help individuals cope with subjective memory complaints and assist the health care system in prioritizing care for aging patients.