EC5202 - Cost Benefit Analysis

This subject examines the use of cost-benefit analysis in evaluating the efficiency of projects. Cost-benefit analysis can be applied to evaluate both physical projects (for example a new mine, new water infrastructure or new railway systems) and non-physical projects (for example changes in the health or educational system). As such, the subject provides relevant skills to a broad range of students well outside the economics domain. The subject pays particular attention to the role of Indigenous people and communities in projects, and external (particularly environmental) costs and benefits. At the conclusion of the subject, students will be able to conduct a cost-benefit analysis at a professional level.

Learning Outcomes

• synthesise the theoretical welfare-economics background of cost-benefit analysis;
• conduct using an Excel spreadsheet a cost-benefit analysis of a real-life project and critically evaluate the findings;
• demonstrate advanced and integrated knowledge of the difficulties of attempting to include non-market values (e.g. environmental values) and / or the views of Indigenous People in standard western-science cost-benefit analysis frameworks.

Subject Assessment

• Written > Test/Quiz 1 - (10%) - Individual
• Written > Client report 1 - (40%) - Individual
• Oral > Interview - (50%) - Group.

Note: Minor variations might occur due to the continuous Subject quality improvement process, and in case of minor variation(s) in assessment details, the Subject Outline represents the latest official information.