Thermoeconomics

George Tsatsaronis, Frank Cziesla, in Encyclopedia of Physical Science and Technology

(Third Edition), 2003
II.D Sensitivity Analysis
An economic analysis generally involves more uncertainties than a thermodynamic analysis.
In the above discussion, it has been assumed that each variable in the economic analysis is
known with certainty. However, many values used in the calculation are uncertain. A
sensitivity analysis determines by how much a reasonable range of uncertainty assumed for
each uncertain variable affects the final decision. Sensitivity studies are recommended to
investigate the effect of major assumptions about values referring to future years (e.g., cost of
money, inflation rate, and escalation rate of fuels) on the results of an economic analysis.
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Volume 2
Reddy V. Ratna, in Encyclopedia of Environmental Health (Second Edition), 2019
Introduction
Economic analysis of human health dates back to the advent of life insurance programs. Such
analyses were based on general health risks, life expectance, and so on, and vary across
communities/countries. Economic analysis of health impacts has expanded beyond life
expectancy with the increasing prominence of environmental economics during the recent
decades. Ecosystems or environment supports the biological needs of humans, namely, food,
water, and air. Health and quality of ecosystems influence human health and well-being.
Degradation of water, air, and land resources and climate change could cause severe adverse
health impacts on human health. The ecosystem- or environment-related health impacts could
be grouped broadly under direct and indirect impacts. Direct impacts include floods, water
scarcity, and pollution, and indirect impacts include health consequences of pollution,
degradation of resources, livelihood loss, and displacement.
Human health is one of the most important factors influencing policy measures, and thus
economic development in any economy. A healthy workforce is very much essential to the
development of an economy. A healthy workforce requires a healthy environment, that is,
clean air, water, recreation, and wilderness. Most important and immediate consequences of
environmental degradation in the developing world take the form of damage to human health.
Health impacts due to environmental changes are considered very important and have
become integral to the assessment of development projects. Economic analysis of
environmental health impacts has become critical for social cost–benefit analysis (CBA) as
well. Economic analysis of these impacts would provide avenues for investments for
mitigating the adverse impacts. CBA of projects that mitigate adverse impacts can be worked
out for policy purposes. This article focuses mainly on the health impacts caused due to
environmental changes or ecosystem impairment and economic assessment of these costs.