教程说明案例教案17cost benefit analysis.pptxVIP

Cost-Benefit Analysis;;Cost-Benefit Analysis (CBA);Cost-Benefit Analysis (CBA);Cost-Benefit Analysis (CBA);Cost-Benefit Analysis (CBA);Cost-Benefit Analysis (CBA);Cost-Benefit Analysis (CBA);Shadow Prices;Social costs ; Definition of social cost – driving to work;Marginal social cost (MSC);Diagram showing marginal social costs;Social Benefit – cycling to work ;If we cycle to work, the private benefits include: Lower cost of cycling rather than driving Health benefits of cycling Ability to avoid congestion, and quicker journey to the worker. But, the social benefit of cycling may also include external benefits, such as: Lower congestion for other road users Lower pollution levels from a decision to cycle rather than drive Better health may lead to lower health care costs. ;Marginal Social Benefit (MSB) (consumption);Diagram of Marginal Social Benefit;Self-assessment task 6.4 (page 138) 1a) A private benefit resulting from producing the Nano is the easiness of parking, more than one can go in one space A possible external benefit is that air pollution may be reduced if the Nano replaces more polluting cars. b) One of the private costs involved in producing the Nano is the wages paid to the workers. A possible external cost is the extra congestion that will occur if the Nano adds to the number of cars on the road. 2 To decide whether the production of the Nano is a case of market failure or not, it would be necessary to assess whether marginal social cost equals marginal social benefit. There may be both external costs and external benefits but they may offset each other. There is, however, also the question of equity. Although the Nano will make it possible for more people to purchase a car, a significant number will still not be able to afford it. ;Self-assessment task 1 Costs: private costs of building and operating new rapid transit system including material costs, labour costs and fuel. External costs may include damage to wildlife habitats and some nois