3.2 In order to achieve the above objectives, it is necessary to impart training
on the following sub-units:Sl. No. Name of the Sub Unit
- Utility cost and benefits.
- Compensation theory
- Social Rate of Discount
- Externalities
- Instructions to faculty:
Make a presentation covering the following content areas:
v Objective functions in cost benefit analysis.
v Social preferences as objective functions.
v Preference and utility.
v Valuation of benefits.
v Valuation of costs.
v Compensation theory.
v Distribution of Income and ‘Equity’.
v Meaning and use of Social Rate of Discount.
v Defining externalities.
v Technological externalities.
v Externalities and future generations.
v Social time preference.4.1 Faculty may use the points given in visual aid 24 in order to make their
presentations.Visual Aid - 24: Cost – Benefit Analysis
Cost - benefit analysis
ó Why?
ó Social preferences
ó Utility and welfare
ó Compensation
ó Externalities
ó Social rate of discount
ó Valuation
ó Case Studies.