Project evaluations and decision processes
Working paper
Published version
View/ Open
Date
1995-02Metadata
Show full item recordCollections
- Discussion Papers [1000]
Abstract
Cost-benefit analysis have been attacked by many critics because of its implicit ethical assumptions. The normative content of the method is at odds with the common attitude that economists should analyze how to reach given goals, while determination of the goals should be left to the politicians. This paper presents a descriptive model of decision makers' behavior, demonstrating that rational, benevolent politicians will only in special cases accept the evaluation of projects resulting from a cost-benefit analysis. An alternative approach to project evaluation, which allows individual decision makers to rank projects in accordance with their own ethical views, is presented. In this framework, estimates of willingness to pay are generally not required. On the other hand, information about groups that are significantly affected by the project, as well as physical unit information on changes in the supply of public goods, is crucial.
Publisher
Statistisk sentralbyråSeries
Discussion papers;137Related items
Showing items related by title, author, creator and subject.
-
The impacts of alternative policy instruments on environmental performance. A firm level study of temporary and persistent effects
Bye, Brita; Klemetsen, Marit Elisabeth (Discussion papers;788, Working paper, 2014-10)We study the effects of various environmental regulations on environmental performance measured as emission intensity. Moreover, we aim to test whether any such effects are persistent or only temporary. Conventional theory ... -
The welfare effects of carbon policies: grandfathered quotas versus differentiated taxes
Bye, Brita; Nyborg, Karine (Discussion Papers;No. 261, Working paper, 1999)Recently, it has been demonstrated that pre-existing distortionary taxes can substantially increase the costs of market-based instruments which do not raise revenue, such as non-auctioned emissions quotas. Revenue-raising ... -
Labour market rigidities and environmental tax reforms : welfare effects of different regimes
Bye, Brita (Discussion Papers;No. 242, Working paper, 1998)The working of the labour market is important for the total welfare effects of tax reforms. This paper analyses, by using a computable general equilibrium model for the Norwegian economy, how different assumptions about ...