Sustainability and cost - benefit analysis
In this paper I address the issue of incorporating environmental sustainability in project appraisal. I extend the results of Barbier,Markandya, and Pearce on 'operationalizing' a concept of sustainability into appraisal methods for practical decisionmaking. I generalize their results in t...
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| Format: | article |
| Language: | eng |
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2010
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| Online Access: | http://hdl.handle.net/10174/2294 |
| Country: | Portugal |
| Oai: | oai:dspace.uevora.pt:10174/2294 |
| Summary: | In this paper I address the issue of incorporating environmental sustainability in project appraisal. I extend the results of Barbier,Markandya, and Pearce on 'operationalizing' a concept of sustainability into appraisal methods for practical decisionmaking. I generalize their results in two directions. First, I abandon their implicit assumption that benefits and costs of a given project in a given period depend only on the level of activity of the project in the same period. Second, I address the issue of which portfolio of projects to choose. My results show how to modify the net present value criterion for choosing a set of projects in the presence of a sustainability constraint. |
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