As indicated above it is highly recommended that your project or program is relevant to your discipline area.
The cost benefit report should, as far as possible, cover the key points from the core lecture and seminar topics. It should begin with a description of the project including objectives, existing situation and alternatives. The source of all the data used should be clearly indicated. The basis of any estimates or synthetic (made up) data should be explained (However you should place complex explanations in an Appendix). Cost benefit techniques such as non-market valuation, discounting, sensitivity analysis, distributional impacts, and decision rules should all be used and explained where appropriate.
Particular emphasis should be placed on justifying the costs and benefits that you include and explaining the valuation techniques used. The quantification of the value of the economic impact (cost or benefit) should be justified by explaining the method of valuation of that impact.
The Kingsford Smith Airport and the Tennant Creek Dam examples can be used as a good guide to the content and format of the report. The main criteria in marking the Report will be how well the student understands the cost benefit method. Rather than getting the “right” number from the analysis this requires use and explanation of the appropriate techniques for the context and purpose for which they are used. Your report should include explanations of why certain techniques were used including consideration of their strengths and weaknesses.
Grading and Feedback
| Define the Project Scope
1. Detailed description of the project using statistics and microeconomic diagrams. Maximum mark 6 |
| Exposition and Analysis of the Project
2. Identifies, explains & applies the causal relationships in the project & the assumptions on which they are based (use of microeconomic models). Maximum mark 8 |
| Application of CBA Theory and Concepts
3. Demonstrates an excellent understanding of CBA theory & concepts in application to the project Maximum mark 10 |
| Use of Appropriate Valuation Techniques
4. Identifies, explains & applies appropriate valuation techniques and displays appropriate data from a range of sources. Maximum mark 8 |
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Communicating the Report of the Decision Maker/s or Clients 5. Assesses the significance of the report’s analysis for the decision-maker. This might include discussion of risk and income distribution. Maximum mark 6 |
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Research Undertaken 6. Evidence of relevant & extensive research, e.g. Academic journal articles. Maximum mark 6 |
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Academic and Professional Standards 7. Report presentation (writing, layout, a standard author-date referencing system, diagrams, etc.). Maximum mark 6 |
