ENGG 209 Lecture Notes - Social Discount Rate
23 Nov 2012
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Document Summary
Framework of bca, identify the users bene ts/disbene ts, primary bene ts are direct. Ii) secondary bene ts are indirect: quantify bene ts, identify and quantify sponsors costs, capital costs. Iii) some costs affect through revenues: determine the equivalent bene ts and costs at same base periods sing an appropriate discount rate (social discount rate - sdr, project without private counterparts. Project should re ect long term government borrowing rate. Sdr should re ect rate that could have been earned in the private sector: accept the project if equivalent bene ts > equivalent costs, example: northwest lrt. Under construction in early 1980s: calgary has very concentrated core and very low density population, peaking problem in downtown streets, potential solutions, structural: build and spend money. Ii) institutional: ex times, decentralizing activity, car free zones, multi- passenger vehicle lanes, toll roads, do nothing: identi cation and quanti cation of bene ts and costs, bene ts (all values in 1982 $)
