For students:

Cost-Benefit Analysis (5 cr)

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Code:
AGERE-002
Field:
Microeconomics
Target:
Master’s students
Organiser:
University of Helsinki - Environmental Economics
Instructor:
Anna-Kaisa Kosenius
Period:
Period 4
Format:
Lecture
Method:
Remote teaching
Remote:
Zoom link can be found in Moodle
Enrollment:
Sisu How to enroll?

In case of conflicting information consider the Sisu/Courses/Moodle pages the primary source of information.

Content

Microeconomic foundations of CBA (compensating variation, equivalent variation, Potential Pareto Improvements, Consumer surplus, Producer surplus and Government surplus), valuing changes in the primary markets and in the secondary markets, benefit transfer, valuing health effects, discounting, social discount rate, dealing with uncertainty, distributional aspects, climate change and CBA

Teaching

  • Completion method: remote teaching (online learning: short videos on topics, lectures and lecture slides, tests based on material, mandatory assignments)
  • Schedule: can be found in Course Page and Sisu
  • Study materials: can be found in Moodle
    • For some courses, it is enough to register in Sisu and you can access directly the Moodle area, please note, however, that it may take up to two hours after registration to enter the Moodle area.
    • Log in with your UH username to be able to use all the features of the course workspace
    • More tips for enrolling in Moodle can be found here

Please register for the course in the UH Sisu with your UH username. Further instructions can be found here.

University-specific instructions

Aalto University Students

  • Code: no equivalent code

  • Target groups: MSc (not suitable for PhD students)

  • Credit points: 5

  • Credit transfer: apply for inclusion in Sisu

Further information on credit transfer can be found here.

Hanken Students

  • Code: 26067

  • Target groups: MSc (not suitable for PhD students)

  • Credit points: 5

  • Credit transfer: apply for substitution in Sisu

Further instructions on credit transfer can be found here.

University of Helsinki Students

  • Code: AGERE-002 (AGERE students)

    • MSc students in economics can not include the course in ECOM-G400 module, but in ECOM-MUUT Other studies (optional course)

  • Target groups: AGERE MSc students (not suitable for PhD students)

  • Credit points: 5

FDPE Students Students

  • Not suitable for PhD students

Learning outcomes

  • to understand the microeconomic theory behind CBA
  • to learn the basic principles of benefit-transfer and
  • how to assess the value of outcomes of projects affecting market prices
  • to be able to distinguish between impacts in the primary markets and the secondary markets and understandwhen the impacts in the secondary markets should be included in the CBA.
  • to understand the impact of the choice of the discount rate on the net present value of a project, illustrate andcritically assess the different theories regarding the choice of the discount rate, and calculate the net present value of a project.
  • to understand how uncertainty is incorporated into cost-benefit analysis in both theory and practice and perform expected value analysis and Monte-Carlo sensitivity analysis.
  • to understand how health effects and distributional issues can be incorporated into cost-benefit analysis and perform a simple distributionally weighted cost-benefit analysis.
  • to understand, illustrate and critically appraise the philosophical and ethical underpinnings of CBA and critically assess CBA-studies and distinguish a well-conducted CBA from a poor one