Question

Social Cost-Benefit Analysis (SCBA) is an assessment method used to determine the economic prudence of a project, programme, or policy to all relevant members of society”. Critically examine this statement. [50 marks]

Answer 1

Answer:
The SCBA is a decision support mechanism that measures and weighs different impacts of a project or policy. It compares venture costs (capital and working costs) with a wide extent of (social) impacts, e.g. travel time reserve funds, travel costs, climate, security, and the environment. It also impacts on property values and economic impacts can be examined.

The social cost direct benefit analysis calculated all three form of effects which are mentioned below:

• Direct Effect : Direct impacts are the costs and benefits that can be specifically connected to the owners/users of the venture properties (e.g., the clients and the proprietor of a building, recreational region, wind energy park etc.)
• Indirect Effect : Roundabout impacts are the costs and benefits that are passed on to the makers and shoppers exterior the market with which the extent is included
• External Effect : External impacts are the costs and benefits that cannot be passed on to any existing markets since they relate to issues just like the environment , security (activity, outside security) and nature.

Few of the result of SCBA are mentioned below:

• The result of making social cost-benefit analysis is that it makes a difference the commerce directors to require approach choices on the premise of the calculated dangers included on the off chance that the extent is executed.
• Externalities(harmful or advantageous effect of the venture) related to the extent can be surveyed after the social effect of the extent has been analyzed.
• It can predict Introduction of the vulnerabilities and dangers in advance.

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