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Protecting the Booroolong Frog in the Namoi Catchment: A Cost-Benefit Analysis

Tertius Greyling and Jeffrey William Bennett

No 107851, Research Reports from Australian National University, Environmental Economics Research Hub

Abstract: The Booroolong frog project in the Namoi Catchment represents an environmental investment to protect the species and around 10.7 kilometres of its habitat in the catchment. The project’s benefit-cost ratio (BCR) of 8.6 indicates that the benefits outweigh the costs by a significant margin. The measures introduced by landholders, at relatively low cost, should therefore result in a significant return on investment upon project completion in 10 years time. The benefits are estimated using a choice modelling study which was recently developed for the valuation of investment in natural resource management in the Namoi Catchment. As this is a largely ex ante cost-benefit analysis, the BCR is subject to uncertainty associated with assumptions which had to be made for some variables. However, sensitivity analysis indicates that the project benefits outweigh the costs by a significant margin even under conservative conditions.

Keywords: Cost-benefit analysis; Benefit-cost ratio; Choice modelling; Booroolong Frog; Namoi Catchment; Environmental Economics and Policy; Research Methods/ Statistical Methods (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env and nep-ppm
Date: 2011-03
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Working Paper: Protecting the Booroolong Frog in the Namoi Catchment: A Cost-Benefit Analysis (2011) Downloads
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