Cost-Benefit Analysis

Intermediate microeconomics, such as YET-203 Mikroteorian jatkokurssi: Yrityksen teoria. Theory of the firm) or ECOK-211 TA3B Mikrotaloustiede or equivalent AND YET-204 Mikroteorian jatkokurssi: Kuluttajan teoria (Consumer theory) or ECOK-210 TA3a Mikrotaloustiede I or equivalent. Students with microeconomics knowledge at introductory level (such as YET-002 Microeconomics principles or equivalent) can also enroll in the course. However, they should be prepared to spend extra time independently, to learning the underlying microeconomic principles and tools at the beginning of the course.

to understand the microeconomic theory behind CBA

to learn the basic principles of benefit-transfer and

how to assess the value of outcomes of projects affecting market prices

to be able to distinguish between impacts in the primary markets and the secondary markets and understand when the impacts in the secondary markets should be included in the CBA.

to understand the impact of the choice of the discount rate on the net present value of a project, illustrate and critically assess the different theories regarding the choice of the discount rate, and calculate the net present value of a project.

to understand how uncertainty is incorporated into cost-benefit analysis in both theory and practice and perform expected value analysis and Monte-Carlo sensitivity analysis.

to understand how health effects and distributional issues can be incorporated into cost-benefit analysis and perform a simple distributionally weighted cost-benefit analysis.

to understand, illustrate and critically appraise the philosophical and ethical underpinnings of CBA and  critically assess CBA-studies and distinguish a well-conducted CBA from a poor one

Exam.

Grading: 0-5. Exam (100%).

Online learning. Short videos on topics, lectures and lecture slides, tests based on material. Mandatory assignments.

AGERE students. The course is also available to students from degree programmes other than Agricultural, Environmental and Resource Economics (AGERE).

4. period

1. or 2. year

Theories and methods

10 years

Master´s /EQF level 7