Applying A Simulation Technique To Benefit-Cost Analysis of Gis: A Case Study of Daegu City, Korea

Kwang Ju Kim

International Review of Public Administration, 2004, vol. 9, issue 1, 89-95

Abstract: The purpose of this study is to apply a simulation technique to the benefit-cost analysis (BCA) of a geographical information system (GIS) and find some lessons from the results. For this purpose, the study selects Daegu City as a case. The third largest city in Korea, began to construct digital maps for GIS from the year 1988 and completed city-wide digital mapping for GIS in the year 2000. The study collects data from the year 1988 through 2000. Based on this data, the study simulates future costs and benefits in order to find the shortest payback period. According to a BCA simulation with 4% interest rate, accumulative net benefits become positive from the year 2011, which is 11 years after the completion of its GIS construction and 24 years after the beginning of digital mapping for GIS. Finally, the study discusses some pitfalls of BCA, such as unclear goal definition, weak assumption on the system sustainability and other intangible detriments.

Date: 2004
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DOI: 10.1080/12294659.2004.10805041

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