Cost Benefit Analysis

Aim

The students shall acquire knowledge about Cost-Benefitanalysis (CBA) and on a deeper level understand what a CBA includes and how it is performed.

• Understand and be able to describe important parts of the theory Cost Benefit is based on.
• Understand and be able to describe concepts used in CBA.
• Carry out a Cost Benefitanalysis in all steps.
• Read and understand a CBA and its results made for a relevant project in the society. Course content The welfare theoretical base includes concepts as consumer surplus, producer surplus, welfare and effectivity and are treated in the beginning of the course. The concepts of benefit and cost are discussed in detail. A large part of the course treat the different steps in CBA, including identifying, quantifying, valuation, discounting, sensitive analysis and presentation. An important part of the CBA is the step valuation, which will be discussed in detail. The use of CBA will be exemplified in different areas. Teaching and working methods Lectures, exercises and a project work. Examination UPG1Project2 creditsU, GTEN1Written examination4 creditsU, 3, 4, 5Grades for examination modules are decided in accordance with the assessment criteria presented at the start of the course. Grades Four-grade scale, LiU, U, 3, 4, 5 Other information About teaching and examination languageThe teaching language is presented in the Overview tab for each course. The examination language relates to the teaching language as follows: If teaching language is “Swedish”, the course as a whole could be given in Swedish, or partly in English. Examination language is Swedish, but parts of the examination can be in English.If teaching language is “English”, the course as a whole is taught in English. Examination language is English.If teaching language is “Swedish/English”, the course as a whole will be taught in English if students without prior knowledge of the Swedish language participate. Examination language is Swedish or English depending on teaching language.OtherThe course is conducted in such a way that there are equal opportunities with regard to sex, transgender identity or expression, ethnicity, religion or other belief, disability, sexual orientation and age.The planning and implementation of a course should correspond to the course syllabus. The course evaluation should therefore be conducted with the course syllabus as a starting point. The course is campus-based at the location specified for the course, unless otherwise stated under “Teaching and working methods”. Please note, in a campus-based course occasional remote sessions could be included. Department Institutionen för ekonomisk och industriell utveckling Course literature BooksMattsson, Bengt, (2006) Kostnads-nyttoanalys för nybörjare. Karlstad : Räddningsverket, 2006 ISBN: 9172532866

Content

The welfare theoretical base includes concepts as consumer surplus, producer surplus, welfare and effectivity and are treated in the beginning of the course. The concepts of benefit and cost are discussed in detail. A large part of the course treat the different steps in CBA, including identifying, quantifying, valuation, discounting, sensitive analysis and presentation. An important part of the CBA is the step valuation, which will be discussed in detail. The use of CBA will be exemplified in different areas.