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BENEFITS AND COSTS ASSESSMENT OF PUBLIC PROJECTS

BENEFITS AND COSTS ASSESSMENT OF PUBLIC PROJECTS

Abstract

The article examines the tools for assessing the effectiveness of public sector projects, which successful implementation is the key to improve the society welfare and its development. The subject of research is the analysis of public project effectiveness, the goal is the identifying the features of using the Cost Benefit Analysis method during assessing and giving recommendations for its practical application (for example, Kyiv Boryspil Express). The objectives of the research are the assessment of the specific public project using this method, identifying and giving recommendations for overcoming its limitations. The methods of empirical and theoretical research are used to get there. It has been determined that the main specificity of cost benefit analysis of public projects is to determine and use special methods for identifying basic indicators for assessment: consumers and producers surpluses, irreversible and alternative costs, external effects, etc. It is proved that the correct definition of changes in the social surplus in an imperfectly competitive market and the total social benefits of the economic course requires an assessment of sunk costs. The greatest difficulty in their assessment is to determine the price elasticity of demand for project services. However, this is quite possible using one of the methods of surveying potential consumers, such as the referendum method. It is shown that an important component of the analysis of benefits and costs of public projects are externalities. The accepted way to determine the impact of the project on the environment is to use the method of related markets.

У статті розглянуто інструментарій оцінювання результативності проєктів суспільного сектору, успішна реалізація яких є запорукою підвищення добробуту суспільства та його розвитку. Предметом дослідження є аналіз ефективності суспільного проєкту, метою – виявлення особливостей використання методу аналізу вигід і витрат при оцінці та обґрунтування рекомендацій щодо його практичного застосування на прикладі Kyiv Boryspil Express. Завдання дослідження полягають в оцінці ефективності конкретного суспільного проєкту з використанням даного методу, виявленні та наданні рекомендацій щодо подолання його обмежень. Для реалізації цих завдань використано методи емпіричного і теоретичного дослідження. Визначено, що основна специфіка аналізу вигід і витрат суспільних проєктів полягає у необхідності визначення та використанні особливих прийомів ідентифікації базових показників оцінки вигід і витрат: виробників, незворотних та альтернативних витрат, зовнішніх ефектів тощо.

Keywords

external effects, irreversible costs, вигоди, суспільний проєкт, costs, benefits, public project, consumers’ surplus, зовнішні ефекти, незворотні витрати, надлишок споживачів, alternative costs, альтернативні витрати, витрати

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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