| CODE | ECN2305 | ||||||||||||
| TITLE | Understanding Cost-Benefit Analysis for Spatial Planning | ||||||||||||
| UM LEVEL | 02 - Years 2, 3 in Modular Undergraduate Course | ||||||||||||
| MQF LEVEL | 5 | ||||||||||||
| ECTS CREDITS | 4 | ||||||||||||
| DEPARTMENT | Economics | ||||||||||||
| DESCRIPTION | This study-unit introduces students to the investment appraisal tool referred to as Cost Benefit Analysis. Based on the EC's guidelines in investment appraisal through CBAs, students will learn about the economic concepts underlying this tool, the main techniques used to value project impacts, and key questions to ask from a spatial planning point of view. The module will follow the contents of a typical CBA, applied to spatial planning, that is: - Project identification - start defining the general design and the logical framework of the project; - Feasibility and options analysis; - Financial analysis - calculation of the FRR and FNPV; - Economic analysis - calculating the social costs and benefits of a project and how they can influence the final result (ERR and ENPV); - Sensitivity and risk analysis - treatment of uncertainty in investment projects. Spatial planning case studies, as well as sector-specific examples, will be presented throughout the module, in order to apply the above contents to spatial planning. Study-Unit Aims: The aims of this study-unit are to: - Provide an overview of traditional financial project appraisal, and where CBA fits in within the context of spatial planning; - Describe the rationale underlying each of the specialist financial/ economic valuation techniques, giving examples of case studies related to spatial planning/ development; - Outline the methodology of each technique; - Identify the main strengths/weaknesses of each technique; - Review the investment decision rules employed in CBA; - Discuss sensitivity analysis in the context of CBA. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - Identify what a CBA involves; - Develop a clear understanding of the techniques in CBA and their methodology; - Apply the usefulness of CBAs in the context of spatial planning, through relevant case studies discussed throughout the study-unit. 2. Skills: By the end of the study-unit the student will be able to: - Interpret the results of a typical CBA; - Challenge the options identified, the methodologies used, assumptions applied and project selection results, in a CBA; - Undertake analysis (through a CBA) that assists spatial planners to determine the best course of action in terms of economic returns relative to the resources used, within the context of sustainable development and improving the quality of life. Main Text/s and any supplementary readings: Main Texts: - European Commission - Directorate-General for Regional and Urban Policy (2014), Guide to Cost-Benefit Analysis of Investment Projects. Available online from: https://ec.europa.eu/regional_policy/sources/docgener/studies/pdf/cba_guide.pdf Supplementary Readings: - European Commission - DG Regional Policy (2003) Guidelines for Successful Public 鈥� Private Partnership. - European Commission (2004) HEATCO: Developing Harmonised European Approaches for Transport Costing and Project Assessment, Deliverable 5. - European Commission (2006), Working Document No.4: Guidance on the methodology for carrying out cost-benefit analysis. Available online from: https://ec.europa.eu/regional_policy/en/information/publications/cocof-guidance-documents/2006/working-document-no4-guidance-on-the-methodology-for-carrying-out-cost-benefit-analysis - European Commission (2007) EVA-TREN: Improved decision-aid methods and tools to support evaluation of investment for transport and energy networks in Europe, Deliverable 2. |
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| STUDY-UNIT TYPE | Lecture | ||||||||||||
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| LECTURER/S | Christopher Meilak |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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