Methods Of Economic Appraisal Research Articles

Exploring Perspectives of the Validity, Legitimacy and Acceptability of Environmental Valuation using Q Methodology

The extension of market systems and economic appraisal methods to the natural world and allocation of scarce resources is highly controversial and viewed by some as unethical. This has resulted in questions about the appropriate role of valuation and appraisal methods in informing policy and decision-making. We address this issue by assessing the different points of view that exist in marine research, management and policy communities regarding the estimation of monetary values for marine ecosystems and services and their use in appraisal and policy settings. The principal perspectives emerging from a Q-sort survey of x respondents reveal a clear distinction between a group that is highly sceptical of the framing of human-environment relations in terms of ecosystem services and of the use of economic appraisal and valuation tools in this context, and two or three other groups that are broadly favourable towards that paradigm and its methods, but with slightly different reasons for supporting valuation in practice. Despite the distinguishing features, areas of consensus emerge, including a strong shared perspective that places avoiding damage to marine biodiversity and ecosystems as a fundamental obligation. Furthermore, it is shown that the sceptics do not entirely reject valuation out of hand, but rather express understandable concerns about applicability and appropriate uses that are to some extent recognised by the pro-valuation groups.

Expanding the repertoire of evaluation tools so that evaluation recommendations can assist nonprofits to enhance strategic planning and design of program operations

Data are the lifeblood of decision-making and provide a critical component into the complex mosaic from which decisions emerge. Evaluators and decision-makers should, therefore, continuously seek to explore the use of tools that can produce more meaningful, insightful, and useful data so that decision-making can be enhanced and improved. Traditional economic appraisal methods offer much and are very useful and relevant. Standard financial accounting reporting for tax purposes also provide insightful information on the organization’s financial health and that of its individual programs. However, neither offer insight into cost behavior—an important consideration for making program operations more efficient and for long-term strategic planning, forecasting, and design of program operations. Before COVID-19, programs were already challenged with competition for donor dollars and the pursuit for financial sustainability. The COVID-19 environment has considerably exacerbated these challenges. In this current environment, it is more important than ever for nonprofits to optimize limited financial resources to do more societal good. This paper will illustrate how selected concepts from cost and management accounting can be used by both independent program evaluators to improve their recommendations, as well as program administrators in-charge of nonprofits to enhance decision-making.

Evaluation methods and governance practices of new flexible passenger transport projects

The emergence of new flexible passenger transport services enabled by technological advancements can have substantial impacts on efficiency and sustainability of public transport systems. Socio-economic appraisal methods of transport investments have developed during last decades, and especially CBA is proven to provide robust method for ranking alternative large conventional transport investments such as rail and road projects. However, there is much more uncertainty with potential impacts of new flexible passenger transport serves such as the automated demand responsive transport services, which can be seen as disruptive technologies on the transport markets. For addressing this uncertainty, we studied governance practices for using CBA and other economic appraisal methods in public decision making in the European Union with a special focus on Germany. We identified and analysed the most uncertain and challenging impacts of the new flexible transport services, which require better consideration in current evaluation methods and practices. The results point out challenges and opportunities for reaching the gap between current appraisal practices and the latest knowledge on the potential impacts of new flexible passenger transport services.

Economic Appraisal of Land Resources at Electrochemical Purification of Oil-Contaminated Soils

The work highlights the effects of environmental pollution. The methods of economic appraisal of natural resources include the market, rental, cost-based methods, approach on the basis of the alternative cost and on the basis of the general economic value. It is proposed to apply the cost concept to assess the value of land contaminatedby oil and oil products. To assess the economic damage caused to land resources, the authors recommend using the alternative cost approach. Based on the estimated (possible) damage to agriculture and using the results of experimental data of electrochemical purification of oil-contaminated lands, the authors estimated the one-time costs and compared them with the results of calculations of the economic damage caused to land resources.

Improving the Effectiveness of Public Spending on Transport Infrastructure

The highways network is the backbone of every national transport system and plays a strategic role in a country’s economic development. With regards to the large investments, operational and maintenance costs that it requires, sound asset management and a thorough economic appraisal of investments are of high importance. Therefore, it is appropriate to analyse and possibly modify existing methods for evaluating the economic efficiency of road construction and asset management at the scientific level, with the support of the real practice experience. Our research concentrates on an evaluation of the current approach to the asset management of the transport infrastructure, methods of economic appraisal, their consecutive improvement, incorporation of the LCCA agenda and an evaluation of environmental and social aspects in the investment decision process. Consequently, it focuses on the possibilities for improving the effectivity of these aspects through the proposal of very concrete measures based on the results of our research and the experience of real practice management construction.

Improvement of economic effectiveness of road highway projects

With regards to the strategic role of transport in a country's economic development and the large investments that are required, a thorough economic appraisal of these investments is of high importance. Therefore, it is appropriate to analyze and possibly modify existing methods for evaluating the economic efficiency of road construction at the scientific level, with the support of the real practice experience. Our research concentrates on evaluation of current methods of economic appraisal, their consecutive improvement and on incorporation of the LCCA agenda into the investment decision process. Consequently, it focuses on the possibilities to improve the effectivity of both, an investment decision process and a realization phase through the proposal of very concrete measures based on results of our research and on experience of real practice construction.

Antihypertensive Drugs: A Perspective on Pharmaceutical Price Erosion and Its Impact on Cost-Effectiveness

ObjectiveWhen comparators' prices decrease due to market competition and loss of exclusivity, the incremental clinical effectiveness required for a new technology to be cost-effective is expected to increase; and/or the minimum price at which it will be funded will tend to decrease. This may be, however, either unattainable physiologically or financially unviable for drug development. The objective of this study is to provide an empirical basis for this discussion by estimating the potential for price decreases to impact on the cost-effectiveness of new therapies in hypertension. MethodsCost-effectiveness at launch was estimated for all antihypertensive drugs launched between 1998 and 2008 in the United Kingdom using hypothetical degrees of incremental clinical effectiveness within the methodologic framework applied by the UK National Institute for Health and Clinical Excellence. Incremental cost-effectiveness ratios were computed and compared with funding thresholds. In addition, the levels of incremental clinical effectiveness required to achieve specific cost-effectiveness thresholds at given prices were estimated. ResultsSignificant price decreases were observed for existing drugs. This was shown to markedly affect cost-effectiveness of technologies entering the market. The required incremental clinical effectiveness was in many cases greater than physiologically possible so, as a consequence, a number of products might not be available today if current methods of economic appraisal had been applied. ConclusionsWe conclude that the definition of cost-effectiveness thresholds is fundamental in promoting efficient innovation. Our findings demonstrate that comparator price attrition has the potential to put pressure in the pharmaceutical research model and presents a challenge to new therapies being accepted for funding.

Economic evaluation of structural and non-structural flood risk management measures: examples from the Mulde River

The concept of flood risk management, promoted by the EU Floods Directive, tries to mitigate flood risks not only by structural, hydraulic engineering measures, but also by non-structural measures, like, e.g., land-use planning, warning and evacuation systems. However, few methods currently exist for the economic evaluation of such non-structural measures and, hence, their comparison with structural measures. The objective of this paper is to demonstrate the potential benefits of employing a wider range of economic appraisal methods for flood projects, in particular, it provides examples and applications of methodologies which may be employed to evaluate non-structural measures and their transaction costs. In two case studies at the Mulde River, Germany, two non-structural measures, a resettlement option and a warning system, are evaluated and compared with structural alternatives with regard to their effectiveness, cost-effectiveness and efficiency. Furthermore, a simple approach is tested in order to show the transaction costs of these measures. Case study results show that the choice of evaluation criteria can have a major impact on the assessment results. In this regard, efficiency as an evaluation criterion can be considered as superior to cost-effectiveness and effectiveness as it is also able to consider sufficiently the impacts of non-structural measures. Furthermore, case study results indicate that transaction costs could play an important role, especially with non-structural measures associated with land-use changes. This could explain why currently these kinds of measures are rarely selected by decision makers.

Valuing climate change impacts on Sydney beaches to inform coastal management decisions

PurposeThe purpose of this paper is to demonstrate the critical need for economic information to inform the selection of coastal management options for the beaches of the Sydney region and to outline the project currently under way to address this information gap.Design/methodology/approachThe critical need for the current case study is framed through presenting a summary of the threats posed by current climate change projections, the legislative requirements for economic valuation of natural resources, and the role which economics can play in selection of appropriate coastal management options in response to climate change impacts.FindingsThe paper presents the valuation methods that were selected for use in the Sydney Beaches Valuation Project and outlines the rationale behind their selection.Originality/valueNo current, empirical estimates of the economic value of Sydney beaches are available, which means that managers must use estimates from studies which may not reflect the unique characteristics of either the Sydney beaches or the social context. The results of the study, in terms of both unit measures of economic value and lessons learned during the survey design process, will therefore be of great value to coastal managers in the Sydney region. An external link provides details of the mixed mode survey instrument, which can be used to inform the design of other similar studies. Given the critical role of economic appraisal methods in selection of coastal management alternatives, the survey structure is potentially of great use to coastal managers in similarly threatened coastal locations elsewhere.

Thinking about equity in health care

Public health care systems such as the British National Health Service typically profess two principal objectives: to improve the health of the whole population; and to reduce inequalities in health within it. Given scarce resources, these objectives are often in conflict. Much attention has justifiably been paid, by health economists, to addressing the former objective with methods of economic appraisal. My intention is to focus on the more difficult issue of the pursuit of 'equity' in health care, specifically the desire to reduce inequalities in health. This raises philosophical and policy questions about what makes some people more deserving of care than others, and whether or not society should adopt a forgiving stance towards those who have compromised their health status in some way, and offer access to treatment. Also, decision-makers may need to distinguish between the goal of raising the level of those worse-off and reducing inequality across society as a whole. Moreover, it is important to clarify what we wish to be made less unequal within the realm of health care provision. Tough decisions like these are based on value judgements and trading off one priority against another. In the interests of equity, such decisions need to be transparent and based on the preferences of society as a whole rather than covert and capricious. No manager needs reminding that resources are limited or that if more favourable treatment is accorded to some, inevitably less favourable treatment is accorded to others. Policy-making for a whole unit requires a nurse manager to offer a perspective on multidisciplinary matters and engage in wider public policy issues facing the team. As circumstances change, existing practice may be challenged as unfair, inefficient, or failing to account for important patient characteristics which make them different. Here, thinking clearly about equity is very important, and nurse managers are important as clarifiers of the thinking about what should be considered when making these difficult decisions.

Economic Appraisal of Power Development Projects in Developing Countries: A Preliminary Model of the Semi-Input-Output Framework

Electric power is one of the most important resources that supply not only the final demand of an economy but also the intermediate inputs to various industries. In many developing countries, power development is one of the major development objectives, and planning and appraising power projects constitute one major field of development assistance extended by international and bilateral donor agencies. It is easily envisaged that improved power supply in quantity and quality has significant impacts on the economy. Since industries use power as their primary input, the repercussions of improved power supply should vary depending on the industrial structures and linkages of the economy. However, the conventional methods of economic appraisal for power projects do not have the mechanism that could explicitly assess the repercussions that the different industrial structures and linkages would influence. Because it is important to identify economic costs and benefits based on the repercussions in developing countries, this paper proposes an alternative method of economic appraisal for power projects. The alternative method employs the semi-input-output (SIO) framework, which would be able to reflect the different industrial structures and linkages in the appraisal, and assess the indirect impacts explicitly.The semi-input-output model is known as a cost-benefit version of input-output model. The original purpose of the model was to assess comparative advantages of tradable sectors. However, because the power sector is a non-tradable sector, it is impossible to directly apply the SIO framework to the power sector. This paper, therefore, first estimates the increase in total outputs during the construction and operation periods, and then applies the SIO framework to the estimated increase in total outputs. Thus, the indirect impacts of a power project could be explicity assessed.Finally, the results of economic appraisal of a hydropower development project on Sumatra Island in Indonesia will be reviewed, so that the advantages using the proposed model could be made clear. At the same time, some limitations that have to be improved to employ the SIO framework in a more practical situation will be pointed out for further studies.

Evaluación socioeconómica de la práctica clínica cardiológica

Health services are systems whose mission is to improve the health status of both individuals and society in general. In recent decades, these systems have faced challenges such as their increasing complexity, limited resources, rapid innovation and diffusion of medical technologies, pressures on demand from society and professionals, and the lack of knowledge of the effects of these factors on costs and society's health. In addition, health care expenditures have grown twice as fast as wealth in industrialized countries during the last 25 years. These problems have prompted cost containment as a key issue in health policy and, at the same time, have promoted the development of socioeconomic evaluation as a scientific activity in the frame of health services research. Socioeconomic evaluation tries to determine if the sacrifice made by society, which devotes part of its limited resources to health care, maximizes the outcomes for population. This article describes basic concepts and methods of economic appraisal in health services which are illustrated with examples of clinical practice in cardiology. Common methods of evaluation are described; the relation between the clinical outcome of a procedure and its associated costs is emphasized in explaining the types of efficiency analysis (cost-efficacy, cost-effectiveness, cost-utility, and cost-benefit); and finally a guide for socioeconomic evaluation is provided.

A brief description of the methods of economic appraisal and the valuation of health states

The interest of nurses in methods of economic evaluation appears limited to cost-effectiveness analysis, with an apparent unawareness of other methods of economic appraisal and the types of efficiency they consider. The main methods of economic appraisal are discussed, and linked to different kinds of efficiency. Methods for the valuation of health states, an important accompaniment to the methods of economic appraisal, are briefly described along with some of the practical difficulties. If skilled nursing care--alone or with other disciplines--changes health status then the measurement and valuation of such states may be used to inform resource allocation decisions involving nursing. It could be argued that the main impact of nursing is on quality of life, and if so this suggests cost utility analysis, and not cost-effectiveness analysis, as the natural level of appraisal for nursing. The use of these methods in research, and participation in their future development, are both suggested as valid targets for nurses to aim for.

Status Quo of Economic Appraisal Methods for Rivers in Japan and Their Future Prospect

Status Quo of Economic Appraisal Methods for Rivers in Japan and Their Future Prospect