Applied welfare economics : cost-benefit analysis of projects and policies

Chapter 1: On Social Welfare Chapter 2: The two Fundamental Theorems re-examined Chapter 3: Shadow prices and the social planner Chapter 4: The social cost of goods Chapter 5: The social cost of labour Chapter 6: The social cost of capital Chapter 7: Welfare weights and distributional impacts Chapter 8: Risk assessment Chapter 9: International evaluation practices Chapter 10: Ex-post project evaluation Chapter 11: The use of cost-benefit analysis in regulatory policy

The book presents a consistent framework for applied welfare economics and is grounded in a comprehensive theory of cost-benefit analysis, specifically focused on offering a practical approach to policy and project evaluation. After opening with a theoretical discussion of the concept of social welfare, a critical analysis of the traditional doctrine of welfare economics embodied in the Two Fundamental Theorems, and a presentation of social cost-benefit analysis, the book introduces readers to an applied framework. This includes the empirical estimation of shadow prices of goods, the social cost of labour and capital, and the assessment of risk. The book also examines real-life experiences with cost-benefit analysis, including ex-post evaluation of major projects, economic rates of return in different sectors, and a case study on privatisation.This edition presents updated data, more international examples, and more coverage of topics such as very long run discounting effects and climate change as an intergenerational effect. It also includes more practical examples and end-of-chapter questions to aid student's learning.