• Title/Summary/Keyword: cost-benefit analysis(CBA)

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Perception in IT Investment Cost/Benefit Analysis (정보화 비용/이익 분석요인에 대한 인식도 연구)

  • Lee, Seog-Jun
    • Asia pacific journal of information systems
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    • v.13 no.2
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    • pp.67-85
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    • 2003
  • This study was conducted to analyze Korean companie's perception in IT investment cost-benefit analysis(CBA), and to see if various user group's perception is different. Literature was reviewed to classify and define variables in IT CBA, and questionnaire was distributed to CEOs, CIOs, IT managers, and general managers in Korean companies. Respondent's priority ranking in IT CBA was shown to be tangible benefit, direct cost/intangible benefit, and indirect cost/risk. Data analysis showed that Korean companie's actual practice in CBA was generally aligned with their perception. User group's(Executives vs. mangers, and IT managers vs. general managers) perception was not shown to be statistically different. Survey result also showed that IT CBA was not well practiced in the companies although respondents perceive the analysis very important. These findings suggest that more education and practical experience is needed for Korean companies to perform IT CBA.

COST BENEFIT ANALYSIS OF HIGHWAY SYSTEMS

  • Darren Thompson;Don Chen;Nick Walker;Neil Mastin
    • International conference on construction engineering and project management
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    • 2013.01a
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    • pp.494-496
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    • 2013
  • Cost-Benefit Analysis (CBA) is a systematic optimization process that allows users to compare different alternatives and to determine if a project is a solid investment. Many state DOTs have included CBA in their pavement management systems (PMSs) to help allocate state funds for maintenance, rehabilitation, resurfacing, and reconstruction of pavements. In a typical CBA, each pavement type has an assigned weight factor which represents the level of importance of this pavement type. To conduct an accurate CBA, it is essential to select appropriate weight factors. Arbitrarily assigning weights factors to pavements can lead to biased and inaccurate funding allocation decisions. The purpose for this paper is to outline a method to develop an ideal set of weight factors that can be utilized to conduct more accurate CBA. To this end, a matrix of all possible weight factors sets was developed. CBA was conducted for each set of weight factors to obtain a population of possible optimization solutions. Then a regression analysis was performed to establish the relationship between benefit and weight factors. Finally, a multi-objective genetic algorithm was applied to select the optimal set of weight factors. The findings from this study can be used by state DOTs to strategically manage their roadway systems in a cost effective manner.

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A Study on Value of a Statistical Life and Cost-benefit Analysis about Hydrogen Bus Rollovers Safety Regulation (수소버스 전복 안전기준 도입에 따른 통계적 인명가치 및 비용편익효과 연구)

  • Lim, Seo Hyun;Jang, Jeong Ah;Hong, Sung Jin
    • Journal of Auto-vehicle Safety Association
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    • v.13 no.3
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    • pp.47-53
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    • 2021
  • This study is a study to estimate the VSL (Value of a Statistical Life) and CBA (Cost-benefit analysis) of the rollover safety standard for hydrogen buses, VSL is an economic value concept used to quantify the benefits of avoiding death. CBA shows the effect of cost-benefit, and if B/C is greater than 1, there is a social effect. In order to estimate the VSL and CBA, the hydrogen bus introduction scenario was assumed to be optimistic (20,000 vehicles in 2030), neutral (15,000 vehicles in 2030), and pessimistic (10,000 vehicles in 2030), and the effect of reducing human casualties was estimated. As a result, except for the pessimistic market situation of introducing hydrogen buses (10,000 vehicles in 2030) and the VSL reduction ratio of 10%, all policies were judged to have high cost-benefit effects. These results indicate that the introduction of the rollover safety standard for hydrogen buses is a socially effective policy.

A Study on Analysis of Effectiveness of Incentive by Green Building Certification Criteria (친환경 건축물 인센티브 제도의 실효성 분석에 관한 기초연구)

  • Kwon, Kyong-Soo;Lee, Suk-Won;Kim, Ju-Hyung;Kim, Jae-Jun
    • Proceedings of the Korean Institute of Building Construction Conference
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    • 2012.11a
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    • pp.119-120
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    • 2012
  • The government has offered incentives to encourage private companies that are to meet the Green Building Certification Criteria. Despite offering these incentives, the Green Building Certification Criteria record share of newly-built building in 2010 is 0.35%, very low. Effectiveness of Green Building Incentive applied by the Green Building Certification Criteria is questioned. So we attempts to analysis about effectiveness of Green Building by using Cost-Benefit Analysis. But if we want to use CBA, we need to draw cost, benefit factors that compose the incentive. So in this study, for applying CBA, we analysis cost, benefit factors.

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Multi-Generation Diffusion Model for Economic Assessment of New Technology (신기술의 경제성 평가를 위한 다세대 확산모형 연구)

  • Sohn, So-Young;Ahn, Byung-Joo
    • Journal of Korean Institute of Industrial Engineers
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    • v.27 no.4
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    • pp.337-344
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    • 2001
  • As cost invested in developing the specified technology is increasing, investors are paying more attention to cost to benefit analysis (CBA). One of the basic elements of CBA for new technological development is the diffusion pattern of demand of such technology. Many studies of technology evaluation have adopted a single generation model to simulate the diffusion pattern of demand. This approach, however, considers the diffusion of the new technology itself, not taking into account a newer generation that can replace the one just invented. In this paper, we show how a multi-generation technology diffusion model can be applied for more accurate CBA for information technology. Monte Carlo simulation is performed to find influential factors on the CBA of a Cybernetic Building System.

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Cost-Benefit Analysis for Safety Management Cost using Quantitative Risk Analysis (정량적 위험성 평가에 의한 안전관리 투자의 비용-편익분석)

  • 장서일;조지훈;김태옥
    • Journal of the Korea Safety Management & Science
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    • v.4 no.4
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    • pp.15-26
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    • 2002
  • The quantitative evaluation method of the safety management cost was suggested to prevent a gas accident as a major industrial accident. In a gas governor station, process risk assessments such as the fault tree analysis(FTA) and the consequence analysis were performed. Based on process risk assessments, potential accident costs were estimated and the cost-benefit analysis(CBA) was performed. From the cost-benefit analysis for five classification items of safety management cost, the order of the cost/benefit ratio was estimated.

Cost benefit analysis of introducing domestic food waste disposers on waste and sewage management systems (가정 내 주방용 디스포저 도입에 따른 사회적 비용편익 분석)

  • Ahn, Jong-Ho
    • Journal of Korean Society of Water and Wastewater
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    • v.26 no.4
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    • pp.513-520
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    • 2012
  • The use of food waste disposers (FWDs) can be an emerging option to manage organic food wastes in municipal sewage system. The cost-benefit analysis (CBA) of introducing domestic FDWs is conducted to access the allowable disposer market price and the economic impact on food waste management from conventional solid waste management system. If the convenience value of 10,000 won/month is taken into consideration based on survey results, the introduction of FDWs can lead to net economic benefits, allowing the capital cost of disposer up to 1,000,000 won/unit. Without the consideration of convenience value, the introduction of FWDs becomes profitable if the capital cost of disposer is less than 50,000 won/unit. In case that the value of convenience is more than 7,000 won/month, the reduction of food waste management cost is not valid for the introduction of FWDs to be non-profitable. However, if environmental externalities are considered, the proposed system could become breakeven with the cost of food waste management decreases by 54 % (60,000 won per ton).

Cost-Benefit Analysis for Determination of the Time to Implement In-line Inspection(ILI) on High Pressure Urban Gas Pipelines (도시가스 고압배관의 내부검사(ILI) 이행시기 결정을 위한 비용-편익 분석)

  • Ryou, Young-Don;Kim, Young-Seob;Lee, Su-Kyung
    • Journal of the Korean Institute of Gas
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    • v.15 no.1
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    • pp.15-21
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    • 2011
  • Cost-benefit analysis (CBA) has been performed in order to decide whether the ILI (in-line inspection) suggested as risk mitigation measure (RMM) from quantitative risk assessment is reasonably practicable. As a result of CBA, we could find out the reasonable intervals of implementation of ILI. In order to assess the benefit, value of preventing a fatality (VPF), which measures value of human life, has been used. The adequate VPF figure of high pressure urban gas pipelines for CBA used in this paper is two billion won. As a result of 2 case studies, we found that the most reasonable intervals of ILI suggested as RMM were 13 years or 15 years.

Design and Application of an Analysis-frame Linking EIA and CBA (환경영향평가와 비용편익분석의 연계를 위한 분석 틀 설계 및 적용)

  • Ahn, So-Eun;Kim, Ji-Young
    • Journal of Environmental Impact Assessment
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    • v.20 no.4
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    • pp.565-574
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    • 2011
  • This paper aims to design a policy-assessment tool liking the Environmental Impact Assessment(EIA) and the Cost Benefit Analysis (CBA). As a step towards the incorporation of environmental and economic considerations, the approach used herein takes the form of integrating quantitative information on environmental benefits and costs associated with implementing the project into the existing framework of the EIA. Our case study is an project appraisal of a solar energy plant. It is confirmed that the technique is operational, however, there are certain limitations for a complete assessment. The difficulty mainly originated from the omission of important information from each step of the valuation process. Alternatively stated, some environmental services are not identified, nor quantified, and nor monetized in the process. More case studies are warranted in the future along with elaboration in methodology of techniques. In addition, the construction of a database on environmental values will be required to accumulate reliable and systematized data. These are the necessary conditions to improving quality in application of techniques as well as providing comprehensive and balanced information to decision makers.

Health Economics Evaluation of a Gastric Cancer Early Detection and Treatment Program in China

  • Li, Dan;Yuan, Yuan;Sun, Li-Ping;Fang, Xue;Zhou, Bao-Sen
    • Asian Pacific Journal of Cancer Prevention
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    • v.15 no.13
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    • pp.5133-5136
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    • 2014
  • Objective: To use health economics methodology to assess the screening program on gastric cancer in Zhuanghe, China, so as to provide the basis for health decision on expanding the program of early detection and treatment. Materials and Methods: The expense of an early detection and treatment program for gastric cancer in patients found by screening, and also costs of traditional treatment in a hospital of Zhuanghe were assessed. Three major techniques of medical economics, namely cost-effective analysis (CEA), cost-benefit analysis (CBA) and cost-utility analysis (CUA), were used to assess the screening program. Results: Results from CEA showed that investing every 25, 235 Yuan on screening program in Zhuanghe area, one gastric cancer patient could be saved. Data from CUA showed that it was cost 1, 370 Yuan per QALY saved. Results from CBA showed that: the total cost was 1,945,206 Yuan with a benefit as 8,669,709 Yuan and an CBR of 4.46. Conclusions: The early detection and treatment program of gastric cancer appears economic and society-beneficial. We suggest that it should be carry out in more high risk areas for gastric cancer.