Scribd Logo
Upload

Welcome to Scribd!

  • Presentation On: Social Cost Benefit Analysis

    Uploaded by

    Hunny Mankotia
    14 views6 pages
    The document discusses social cost benefit analysis (SCBA) and compares two approaches. The main focus of SCBA is to determine the economic benefits of a project, its impact on savings and income distribution in society, and how it contributes to goals like self-sufficiency and employment. There are two main approaches: the UNIDO approach which uses domestic currency and measures benefits in stages, and the L-M approach which uses international prices and measures uncommitted social income at once to fulfill SCBA objectives.

    Original Description:

    Original Title

    SCBA

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses social cost benefit analysis (SCBA) and compares two approaches. The main focus of SCBA is to determine the economic benefits of a project, its impact on savings and income distribution in society, and how it contributes to goals like self-sufficiency and employment. There are two main approaches: the UNIDO approach which uses domestic currency and measures benefits in stages, and the L-M approach which uses international prices and measures uncommitted social income at once to fulfill SCBA objectives.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    14 views6 pages

    Presentation On: Social Cost Benefit Analysis

    Uploaded by

    Hunny Mankotia
    The document discusses social cost benefit analysis (SCBA) and compares two approaches. The main focus of SCBA is to determine the economic benefits of a project, its impact on savings and income distribution in society, and how it contributes to goals like self-sufficiency and employment. There are two main approaches: the UNIDO approach which uses domestic currency and measures benefits in stages, and the L-M approach which uses international prices and measures uncommitted social income at once to fulfill SCBA objectives.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    Presentation On Social Cost Benefit Analysis

    Concept & Approaches


    Click to edit Master subtitle style

    3/10/12

    Commercial Cost Benefit Analysis (CBA


    Benefit > Cost is desirable here. So it is nothing but a profitability analysis. But what will be the costs and/or the benefits that a society maBenefit > Cost is desirable hery have to bear and/or get from the proposed project are not considered here.

    3/10/12

    SCBA
    The main focus of Social Cost Benefit Analysis is to determine: 1. Economic benefits of the project in terms of shadow prices; 2 The impact of the project on the level of savings and investments in the society; 3. The impact of the project on the distribution of income in the society; 4. The contribution of the project towards the fulfillment of certain merit wants (self- sufficiency, employment etc).

    3/10/12

    Factors Affetcing ScBa


    Market Imperfections Externalities Taxes & Subsidies Concern for Savings Concern for Redistribution Merit Wants

    3/10/12

    Approaches

    There are two principal approaches for Social Cost Benefit Analysis. A. UNIDO Approach, and B. L-M Approach.

    A. UNIDO Approach:
    This approach is mainly based on the publication of UNIDO ( (United Nation Industrial Development Organization) named Guide to Practical Project Appraisal in 1978.

    B. L-M Approach:
    I.M.D Little & J.A.Mirlees have developed this approach for 3/10/12

    Dissimilarities between Two Approaches


    UNIDO Approach

    Domestic currency is used as Numeraire Consumption is the measurement base SCBA objectives are met through stage by stage L-M Approach International Price is used as Numeraire Uncommitted Social Income is the measurement base At one place all SCBA objectives are fulfilled

    3/10/12

    You might also like