Extended Cost Benefit Analysis Research Articles

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.

The influence illegal fishing surveillance policies on marine fisheries business

Illegal fishing that occurs in Indonesian waters has the potential to harm the marine fisheries business. The government seeks to overcome losses due to illegal fishing through policies and surveillance programs through increasing the fleet of surveillance vessels, increasing operations by sea and air and utilizing information technology. Surveillance of illegal fishing is a public policy, in order to measure the impact and benefits of the policy, economic valuation is needed as a basis for stating that the policy is feasible and provides benefits presented in a value. This study aims to analyze the direct and indirect impact of illegal fishing Surveillance policies on the marine fisheries business. The research method uses producer surplus and analysis uses Extended Cost Benefit Analysis (ECBA). The results showed that the policy of increasing Surveillance provides positive benefits of Rp.1.8 trillion/year, so the policy is feasible. The policy has the potential to save economic and social losses, when the supervision conditions before the policy of increasing Surveillance of social and economic impacts obtained amounted to Rp.466.9 billion / year and after the policy increased Surveillance to Rp. 2.3 trillion / year. The policy of increasing supervision greatly affects the fisheries business at sea, namely the needs and supply of fish for raw materials for the fishery industry are met, increasing the productivity of catches, absorption of labor as fishermen on ships, sufficient fuel stocks and for the government, state revenues from PNBP and fisheries taxes increase.

Economic Valuation of Moratorium and Transhipment Policy to Tuna Fisheries Business, Study Case in Bitung, North Sulawesi

The policy of moratorium on ex-welding vessels, according to Ministerial Regulation No. 56/2014, has an impact on tuna fishery conditions. Behind this policy is due to the heavy losses from the fisheries sector caused by the operation of these ex-foreign ships. This study evaluated the impact of policy by production surplus measurement techniques. The survey was conducted on capture fisheries companies, fish processing companies, and traditional processing groups. Data were analyzed by economic valuation using the extended cost-benefit analysis (ECBA) approach. The study results showed that as long as this policy is implemented, it will cause a decrease in the benefits of 9 tuna fisheries business actors by Rp1.23 trillion per year. Economic and social impacts of Rp 2.63 trillion per year, consisting of economic impacts of Rp1.35 trillion per year and social impacts of Rp1.28 trillion per year, which caused 19,972 people to lose their job. Keywords: cost cost benefit analysis, economic impact, social iImpact, valuation

Extended cost–benefit analysis of tobacco taxation in Brazil

BackgroundBrazil has experienced a persistent and substantial reduction in the prevalence of smoking in the population since 2006 due to increased taxes on tobacco and other tobacco control policies. Despite...

Extend Cost Benefit Analysis of Bauxite Mining and Processing in the Central Highlands of Vietnam

The study focuses on assessing the effectiveness of bauxite mining and processing in the Central Highlands through the example of Tan Rai (Lam Dong) and Nhan Co (Dak Nong) bauxite-alumina complexes by the method of extended cost benefit analysis. External costs have been localized to be taken into account, including opportunity costs, environmental costs, corporate social responsibility costs and contingency costs for environmental incidents. The results showed that if calculating the environmental costs, the Tan Rai complex does not bring effectiveness for society with a negative NPV value (VND -5,167,422 million), IRR (6.27%) is lower than the discount (10%); Nhan Co complex is effective with positive NPV (VND 145,862 million), IRR (10.1%) is higher than the discount (10%), but the operation of this complex is risky when analyzing the sensitivity of the indicators. A ton of alumina will require an average from VND 0.7 to 0.9 million of environmental costs. In a year, two bauxite-alumina complexes in the Central Highlands create stable jobs for thousands of workers, contributing from VND 1,200 to 1,400 billion of taxes and fees for the State, equivalent to between VND 1.0 and 1.2 million per ton of alumina. From the lessons learned from Tan Rai and Nhan Co complexes, the future bauxite mining and processing projects need to be implemented on schedule and operate at 100% of the designed capacity right from the first year to achieve optimal efficiency. In the future, it is necessary to develop and evaluate the effectiveness of closed, full and chain options to improve the operational efficiency of bauxite projects, aiming to thoroughly solve the environmental issues by improving technological processes, implementing land restoration after mining, applying cleaner production solutions.

Historical analysis of rationalizing South West coastal polders of Bangladesh

After more than a decade of meeting the designated objective of increasing productivity in agriculture, the South West coastal polders of Bangladesh have ended up as different man-made disasters. The failure of the polders to deliver the intended outcome is basically attributed to the lack of understanding of their hydro-morphological characteristics, inadequacy in their operation and maintenance, and failure to take into account their social relationship and culture roles. Changes in socioeconomic settings have also forced changes in the designated functions of the polders, but now the emerging context of climate change has become a major issue in rationalizing the coastal polders. In this context, this study is an attempt to review the historical and ongoing process of rationalization of the South West coastal polders, revealing that it is essential to take an integrated view of the hydrologic cycle and the interactions of human interventions. Finally, this paper recommends that an extended cost–benefit analysis with a multi-objective focus or a multi-criteria analysis, if monetizing is not possible, should be an option in rationalizing this multi-functional infrastructure. Proper macro-planning would require development of an institution capable of dealing with a task which is multi-dimensional and multi-disciplinary in nature.

EXTENDED COST BENEFIT ANALYSIS OF A BIOGAS GENERATION PLANT

Solid waste is a growing problem in Sri Lanka in the absence of proper managementmeasures. Development and implementation of a National strategy for municipal solidwaste management is essential in order to reduce environmental, social and the economicproblems associated with the present disposal practices. Such strategies however, need tobe subjected to proper economic analysis in order to arrive at informed decisions. Thispaper presents an extended cost benefit analysis of a biogas generation plant that usesmunicipal solid waste as the raw material.To dispose vegetable market garbage available in Wattala, Kandana and Ja-ela areas a640 Mt capacity biogas/ bio fertilizer project has been housed at Muthurajawela (alongHamilton canal, Elakanda), by the National Engineering Research & DevelopmentCenter of Sri Lanka (NERDC) which uses Dry Batch Anaerobic Digester Technology.Among the other biological treatment options, anaerobic digestion is the most costeffective, due to the high-energy recovery linked to the process and its limitedenvironmental impacts.Economic analysis has been carried out to identify environmental costs and benefitsassociated with the above project. Several environmental valuation methods have beenapplied to value the identified costs and benefits. The main benefit of reduction ofmunicipal solid waste has been estimated by contingent valuation method using samplesfrom Wattala-Mabola, Ja-ela, and Peliyagoda local authority areas. Another benefit is thereduction of green house has emission due to the reduction of open dumping. Greenhouse gas (methane) emission from solid waste was estimated through Sholl Canionmodel and valued using avoided global damage cost approach. Benefits of biogas asenergy and organic fertilizers and employment benefits were estimated by market basedapproachesThe project is viable from economy and environment point of view with net present valueof Rs 142 million for a 20-year period with 10% discount rate. This analysis provides ajustification for undertaking solid waste management strategies in a technologically,environmentally and economically viable manner

EXTENDED COST BENEFIT ANALYSIS OF SAMANALAWEWA HYDRO ELECTRIC PROJECT

The Samanalawewa Hydro Electric Project and its water commanding area is the subject ofthis study. This project is a single purpose hydropower project, which harnesses the watersof the Walawe Ganga by damming the river at the confluence of the Belihul Oya andWalawe Ganga at an elevation of 400m Mean Sea Level. The reservoir covers an extent of897 ha at normal high water level and its catchment covers an area of 341.7 km".As this was a single purpose project, much attention was not paid to other aspects such assupplying irrigation water for down stream and other environmental impacts. Thereforethis study sought to estimate the economic loss due to the reduction of land area and paddyyield at selected down stream areas. In addition, it aims to estimate the economic value oflost carbon sequestration function of the Samanalawewa reservoir submerged area and toincorporate the above values in an extended Cost/Benefit analysis for the Samanalawewaproject.Primary and secondary data were used for this study, which involved a farm householdsurvey. This research disclosed that the scarcity of water due to the dam has resulted in11.64% of yield reduction (equivalent to 36<;44.38 bushels or Rs. 10.5 million) and 24.89%of land become uncultivated (equivalent to 444.27 acres or RS.II. 7 million) annually. Theglobal warming damage costs due to .he lost carbon sequestration function of thesubmerged area is estimated to be Rs. 0.22 million annually. The estimated economic valueof surplus water in terms of foregone powe. generation from the leak at paddy harvestingperiods (April, September and October) is Rs. 95.33 million.The extended cost benefit Analysis showed that EIRR equals 6 %, NPY equals Rs. (-)1980.23 million, and BC Ratio equals 0 47. The implications of these results on futurepower-sector project planning are also discussed.

An Economic Value of the Natural Seaweed Resources

The availability of sea weed at the coastal area was used by the community as a commodity that could be used to earn money. Beside income for the community, sea weed also have ecological benefit that its value could be moneterized. Economic resources valuation is an approach to value the resources, including sea weed. The befenit values of natural sea weed consist of use value that could be estimated by the technique of effect on production (EOP), otherwise non use value could be estimated by the technique of contingent valuation method (CVM). The objective of this paper is valuing economic resources of the natural sea weed at the Ujung Kulon coastal using an approach of resource economic valuation.The result of this study show that the use value of the natural sea weed at the Ujung Kulon coastal is Rp.66.685.861,22 per year or Rp.19.053.103,21 per hectare per year. The non use value can be calculated Rp.263.086.105,98 per year or Rp.75.167.458,85 per hectare per year. Knowing net present value and net cost-benefit ratio could be used extended cost benefit analysis. The result show that using the scenario of 25 year and discount rate 6 percent, NPV of this resources is Rp.86.392.873,63 per hectare per year and Net BCR is 84,99.

Sustainability Analysis of Coffee Farming in Protected Forestof West Lampung Based on Enviromental Economic Value

Study on sustainability of multistrata coffee systems is important related to community forest program. This research aims to study: (1) sustainability of coffee farming in protected forest of West Lampung (2) willingness to pay the external cost and its determinant factors. The study was conducted in Sumberjaya, West Lampung Regency from Juni to October 2009. The study used random sampling method with 50 protected forest farmers were interviewed. Extended Cost Benefit Analysis (ECBA) was used to address the purpose (1) while analysis of ordinal logistic regression was to address the purpose (2) Financial analysis showed that coffee farming in protected forest is feasible with NPV of IDR 17,719,505/ha, BCR 1.86 and IRR 24.96%. Coffee with complex multipurpose shade (MPTS, multipurpose tree species) generated highest NPV. Based on ECBA, sustainability depended on externality cost (environmental and social cost). Coffee farming was not sustainable (shown by negative NPV) when externality cost was more than US $536/ha. When externality cost was 458 USD ha-1 year-1 (minimum value) NPV is Rp1.648.633/ha, BCR 1,04 and IRR 26,88. Complex multipurpose shade coffee was the most sustainable among the systems. To sustain the environment, farmers willing to pay external cost in average of Rp475,660/year for soil conservation, planting more shade trees, environmental tax, and reforestation. Based on ordinal logistic regression, farm size, land productivity, household income, household size, and knowledge of forest benefits, positively influencid WTP. Policy of community forest (HKm permit) that require a minimum of 400 trees/ha could improve sustainability of coffee farming.Key words: Coffee farming, sustainable, protection forest, economic value