BX3033 - Cost Benefit Analysis

This subject examines the use of cost-benefit analysis in evaluating the efficiency of projects. Examples of such applications are the construction of new mines or new water infrastructure or new railway systems. The technique is also applicable to non-physical projects such as changes in the health system. In line with current realities, particular attention is paid to the role of Indigenous People and communities in projects, and external (particularly environmental) costs and benefits. The subject is taught in a practical way with the intention that by the end of the subject, students will be able to conduct a cost-benefit analysis at a professional level. While the subject is available to all JCU students, it is assumed that those who choose to enrol will have a sound understanding of introductory economic principles.

Learning Outcomes

• conduct a cost-benefit analysis (CBA) and use other project evaluation techniques at a professional level;
• explain the environmental considerations in the evaluation of projects, discussing the difficulties of attempting to include non-market values such as these in the cost-benefit analysis framework;
• demonstrate knowledge of the theoretical background of cost-benefit analysis (welfare economics);
• use an Excel spreadsheet to conduct the analysis when undertaking a cost-benefit analysis;
• explain the role of indigenous people and issues in projects, discussing the difficulties likely to be encountered if attempting to incorporate their views within a western-science cost- benefit analysis framework.

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.