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Unit of study_

AREC3007: Benefit-Cost Analysis

Foundational concepts in welfare economics, such as economic efficiency, criteria for assessing social welfare improvements, and economic surplus measures, are analysed in detail and applied to project evaluation and policy assessment. Procedures of conducting a benefit-cost analysis are presented, and tools of non-market valuation for public goods and environmental assets are covered in detail. These techniques include both stated and revealed preference techniques, including contingent valuation, choice modeling, hedonic pricing and travel cost methods.

Code AREC3007
Academic unit Economics
Credit points 6
Prerequisites:
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ECOS2001 or ECOS2901 or AREC2005 or AREC2003
Corequisites:
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None
Prohibitions:
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(AREC2004 or RSEC4131)

At the completion of this unit, you should be able to:

  • LO1. demonstrate an understanding of the theoretical underpinnings of benefit-­cost analysis
  • LO2. demonstrate development of skills and experience for undertaking practical benefit­-cost analysis studies
  • LO3. demonstrate an understanding of the interpretation of benefit-­cost analysis studies
  • LO4. demonstrate an understanding of the main techniques used in non-­market valuation
  • LO5. communicate complex technical information clearly and convincingly
  • LO6. evaluate the strengths and weaknesses of the benefit-­cost analysis methodology, including ethical implications.

Unit outlines

Unit outlines will be available 1 week before the first day of teaching for the relevant session.