 Identifying the Direct and Indirect Economic Effects of Electric Power Development ProjectsToshiyuki Hayashi and Sid Saltzman Chapter 22 in Regional Science: Perspectives for the Future, 1997, pp 314-325 from Palgrave Macmillan Abstract: Abstract One of the primary methods for evaluating the economic effects of development projects in general, and electric power plants in particular, is cost-benefit analysis (CBA). This method typically compares the direct cost and benefit streams throughout a project’s life (that is, its economic effects) which, in the case of electric power plants, includes both its construction and its operation phases. Typically, the direct economic costs of a project are evaluated using the notion of opportunity costs which, conceptually, reflect the economic scarcity of the resources that will be used by the project. For electric power projects, the direct economic benefits can be ascertained by estimating the economic price of electricity which, conceptually, also reflects its economic scarcity. Economic scarcity is reflected in the concept of consumers’ surplus, which can be determined by estimating consumers’ willingness to pay for electricity.1 Keywords: Indirect Cost; Final Demand; Indirect Benefit; Electric Power Plant; Tradable Sector (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-25514-6_22 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-25514-6_22 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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