Resource information
One of the major difficulties in doing
cost-benefit analysis of a development project is to
estimate the total economic value of project benefits, which
are usually multi-dimensional and include goods and services
that are not traded in the market. Challenges also arise in
aggregating the values of different benefits, which may not
be mutually exclusive. This paper uses a contingent
valuation approach to estimate the economic value of a
non-motorized transport project in Pune, India, across
beneficiaries. The heads of households which are potentially
affected by the project are presented with a detailed
description of the project, and then are asked to vote on
whether such a project should be undertaken given different
specifications of costs to the households. The total value
of the project is then derived from the survey answers.
Econometric analysis indicates that the survey responses
provide generally reasonable valuation estimates.
