• Title/Summary/Keyword: Benefit/Cost Analysis

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Multi-functional Benefits & Costs Analysis of Tide Land Reclamation Project and Development Guidelines in the Future (간척사업(干拓事業)의 다기능적(多機能的) 편익(便益)-비용분석(費用分析)과 발전방향(發展方向))

  • Lim, Jae Hwan
    • Korean Journal of Agricultural Science
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    • v.32 no.2
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    • pp.107-126
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    • 2005
  • The most limited production resource in Korea is land. During the period from 1995 to 2002, annual farm land area of 17,600ha have been converted to urban and industrial land. The self-sufficiency rate of rice, Korean staple food, is expected to be decreased from 97.5% in 2003 to 60-70% in 2020. Under such conditions, this study is aimed at first identifying multi-functional benefits of the reclamation projects such as agricultural production, industrial water supply, urban land supply, transportation effects, sightseeing effects and environmental values with and without the projects. To carry out the objectives, three existing tideland reclamation projects such as Daeho, Kumgang and Yongsangang irrigation project stage II were evaluated and Saemangeum tideland reclamation project which was jointly revaluated by environmental NGO and Govn't appointed specialists in 2000 was reviewed. According to this study results, tide land reclamation projects were showed financially and economically feasible and environmentally sustainable. The joint cost like estuary dam should be allocated based on the multi-functional benefits of the projects. To allocate the joint cost, legal and institutional improvement should adapt the joint cost allocation method as the specific cost-remaining benefit method. Korea has more than 402,000 ha of tidal flat of which 76,396ha have been reclaimed in 2003. To meet food security and to cope with shortage of land, phil-environmental reclamation projects should be continuously implemented and necessary tidal flats for protecting environmental ecosystem should be remained according to the detail survey results of reclaimable resources.

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Estimation of Water Quality Improvement Benefit Using Replacement Cost Approach (대체비용법을 이용한 하천 수질개선편익 산정)

  • Yeo, Kyu-Dong;Yi, Choong-Sung;Kim, Gil-Ho;Shim, Myung-Pil
    • Journal of Korea Water Resources Association
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    • v.42 no.4
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    • pp.343-353
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    • 2009
  • The objective of this study is to evaluate the effect of the water quality improvement by water discharge through dams and to provide a benefit estimation methodology, taking domestic situation into consideration, by the replacement cost approach analyzed with a sewage treatment plant instead of an alternative dam. To this end, facility that alternates a dam must have same functions of the discharged water from the dam and the two facilities must be able to be compared objectively. To estimate the benefit, estimation methodology of alternative facility's cost is established and criteria of cost.benefit analysis that are duration period and ratio of large scale repairing expense was presented. As a case study, the water quality improvement benefit of Song-Li-Won dam was evaluated, which is planned to be built on Nae-Sung stream in Nak-Dong River system. The results of applying this methodology to Song-Li-Won dam are 644,006 million won of the annual average discharge and 1,351,526 million won of maximum discharge. The usage of the framework in this study is expected for estimation of water quality improvement benefit in case water quality improvement project is performed.

Economic Analysis of the Fuel Forests Established by I.B.R.D. Saemaeul Project Loan (I.B.R.D. 새마을사업차관(事業借款)에 의한 연료림조성(燃料林造成)의 경제분석(經濟分析)에 관한 연구(硏究))

  • Song, Byong Min;Park, Tai Sik
    • Journal of Korean Society of Forest Science
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    • v.59 no.1
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    • pp.9-14
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    • 1983
  • The study was performed to decide the returns or investment efficiency of the fuel forest established project and to examine its economic value as compared the benefit with the cost occurring from that established by I.B.R.D loan. The data got from the surveying plot and other things connected with the project were applied to the measures of benefit-cost ratio and internal rate of return (IRR). The following are the results from the economic analysis of the fuel forest created by the loan per hectare 1) In case of converting the fuelwood value from the fuel forest into briquet price, the benefit-cost ratio is 1.18 at the 6 percent discount rate and the IRR is appraised to 12.2 percent 2) In the sensitivity analysis estimated by the rising rate of rural wages 27% the yearly mean, the B/C ratio is 1.07 at the 6 percent discount rate and the IRR 9.2 percent. 3) In the sensitivity analysis estimated by the rising rate of briquet price, 26% the yearly mean, the B/C ratio is 1.34 at the 6 percent discount rate and the IRR is appraised high to 15.7 percent 4) In the event of including indirect effects to the direct in the project, the economic effect could be increased just a little more.

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Economic Analysis on Desalination Technology for Saline Agricultural Land on the Basis of Crop Production (염류집적 농경지 제염기술에 대한 경제성분석 - 작물생산량을 기준으로)

  • Kim, Do-Hyung;Choi, Jeong-Hee;Kim, Lee-Yul;Nam, Chang-Mo;Baek, Ki-Tae
    • Journal of Soil and Groundwater Environment
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    • v.17 no.5
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    • pp.40-48
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    • 2012
  • In this study, economic analysis of five desalination technologies for saline agricultural land was carried out. The analysis was comprehensively evaluated by calculating changes in crop production and benefit/cost (B/C) ratio. The analysis of crop production was in the order of tomato > cucumber > a (musk) melon > watermelon > cabbage, and economical efficiency for desalination technology was in the order of soil exchange > soil addition > electrokinetics > under-drainage > subsoil reversal. In cost benefit analysis, B/C ratio was in the order of under-drainage > soil exchange > electrokinetics > soil addition > subsoil reversal, and all desalination technologies used in this study have the ratio higher than 1, which means economical efficiency was high. Based on the net production considering B/C ratio, the general economic analysis was exactly order from that of crop production analysis. As a result, economical efficiency of soil exchange was highest, and economical efficiency of soil addition and electrokinetic was relatively higher than others.

Cost-Benefit Analysis Method for Ageing Equipment of Chemical Plants Using Risk Assessment (위험성평가를 이용한 노후설비에 대한 비용 편익분석 방법)

  • Jung, Soomin;Jung, Changmo;Kang, Seok-Min;Chae, Seungbeen;Kang, Seung-Gyun;Ko, Jae Wook
    • Journal of the Korean Institute of Gas
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    • v.24 no.4
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    • pp.84-92
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    • 2020
  • Most facilities in chemical plants operate in environments that are outside the range of temperature and pressure that can be encountered on a daily basis, and are vulnerable to aging due to these stresses and environmental conditions. The facilities exposed to these conditions are not only likely to fail due to cumulative damage, but also lead to accidents if maintenance and replacement are not performed.Recommendation guidelines called risk-based inspection are widely used around the world-wide. However, limits exist for facilities that have already elapsed for a certain. As a result of the survey on the aging of Ulsan industrial complex in Korea, which carries out proper inspection, many of the facilities have been used for 20 years. Also, most of the facilities where the accident occurred have been in operation for more than 20 years. Therefore, this study suggested criteria for classifying devices that have exceeded a certain period of use as obsolete facilities. In addition, quantitative risk assessment was conducted. The safety investment method using the cost-benefit analysis method was proposed in order to calculate the loss cost and reduce the risk by expressing the risks of the corresponding aged facility as an Economic index. By utilizing the method of cost-benefit analysis of old facilities using the quantitative risk assessment presented in this study, it can be expected to improve the performance and life of old facilities, improve production efficiency and reliability of the system of facilities, change the recognition of safety management costs, increase employee stability, and reduce loss costs.

Risk-Based Damage Cost Estimation on Mortality Due to Environmental Problems (환경 오염으로 인한 인체 위해도에 입각한 사망 손실 비용 추정에 관한 연구)

  • Kim, Ye-Shin;Lee, Yong-Jin;Park, Hoa-Sung;Shin, Dong-Chun
    • Journal of Preventive Medicine and Public Health
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    • v.36 no.3
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    • pp.230-238
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    • 2003
  • Objectives : To estimate the value of statistical life (VSL) and health damage cost on theoretical mortality estimates due to environmental pollution. Methods : We assessed the health risk on three environmental problems and eight sub-problems. Willingness to pay (WTP) was elucidated from a questionnaire survey with dichotomous contingent valuation method and VSL (which is the division of WTP by the change of risk reduction) calculated from WTP. Damage costs were estimated by multiplying VSL by the theoretical mortality estimates. Results : VSLs from death caused by air pollution, indoor air pollution and drinking water contamination were about 0.3, 0.5 and 0.3 billion won, respectively. Damage costs of particulate matters ($PM_{10}$) and radon were higher in the sub-problems and were above 100 billion won. Because damage cost depends on theoretical mortality estimate and WTP, its uncertainty is reduced in the estimating process. Conclusion : Health damage cost or risk benefit should be considered as one scientific criterion for decision making in environmental policy.