HW 6 Flashcards
BCA
Compare and cost and benefits associated with a project decision 
PVNB
The present value future value net benefits paid received t years from today 
Partial equilibrium
Analysis of individual market or small number of related markets
General equilibrium
Analysis of all markets across economy and the linkages between them 
Engineering cost 
Technical estimate of cost of input requirements needed to implement control technology
Compliance cost
Increase in variable cost 
Non-market valuation 
People value the environment in the sense that they would be willing to give up something else of value to continue to enjoy them
Use value
What we normally consider value that arises from using a resource 
Non use value
Benefit occurring to individuals who does not use a resource has no plan or intention to use it in the future
Revealed preference
Method to estimate value of statistical life, based on situations in which people make trade off between money or time and risk of death
Stated preference 
Method to estimate both use and nonuse value 
Wage risk method
To estimate the value of reduce mortality, risk economists, estimate the effect of job risk on wages, controlling for skills of workers and other factors
Value of statistical life (VSL)
Used to estimate the benefits of reduce premature mortality, caused by government actions such as environmental regulations
Short term study
aka time series
Long-term study 
Study occurring over a relatively long period of time
