University of British Columbia
Economics 370: Cost-Benefit Analysis
Course Outline
Semester: Winter 2005
Instructor: Dr. Clive Chapple
Office: Buchanan Tower 923 (Mondays only)
Email: cchapple@interchange.ubc.ca
Phone Number: 604-822-4724
Lecture Location: Buchanan B320
Lecture time: Mondays, 6:00 to 9:00 pm
Office Hours:
Mondays, 4:30 to 5:30 pm (my office, by appointment)
Mondays, 9:00 to 9:30 pm (after class)
Course Description
This course examines the role, underlying principles, and practice of cost-benefit analysis as tool for project
evaluation. The course introduces a wide range of applications, both real and fictional. The course also examines
other methods of project evaluation, such as cost-effectiveness analysis and multi-goal analysis, and techniques
for valuing environmental impacts. A student who successfully completes this course should be able to make a
valuable contribution to a team preparing a cost-benefit study and should be able to critically evaluate existing
cost-benefit studies.
Course Text
The required text for the course is "Cost-Benefit Analysis: Concepts and Practice," by Anthony E. Boardman,
David H. Greenberg, Aidan R. Vining and David L Weimer, 2nd edition, Prentice Hall, 2001.
Evaluation
Grades for the course will be based on two assignments (worth 7.5% each), a midterm exam (worth 35%), and a
final exam (worth 50%). The assignments are to be done by students in groups of three (the same groups will
complete both assignments). Each group will submit only one solution for each assignment. Solutions must be
typewritten and the quality of the exposition should be high. Model solutions for each assignment will be posted
to the course web page shortly after the due date; therefore, late assignments will not be accepted.
15% Assignments
35% Mid-term Exam
50% Final Exam
100%
Important Dates
Week
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Date
Jan 3
Jan 10
Jan 17
Jan 24
Jan 31
Feb 7
Feb 14
Feb 21
Feb 28
Mar 7
Mar 14
Mar 21
Mar 28
Apr 4
Comment
Holiday – no class
Regular lecture
Regular lecture
Regular lecture
Regular lecture
Regular lecture
Mid-term break – no class
Mid-term exam and lecture
Regular lecture
Regular lecture
Regular lecture
Regular lecture
Holiday – no class
Regular lecture
1
Outline of Topics
1. Introduction to cost-benefit analysis
2. Conceptual foundations of cost-benefit analysis
3. Estimating costs and benefits when markets exist
4. Net present value and related decision criteria
5. The public sector discount rate
6. Dealing with risk and uncertainty
7. Valuing environmental and other non-market goods
8. Multiple account analysis (if time permits)
Missed exams and assignments
You are required to take the exams and submit assignments at their scheduled times. If you fail to do so, you will
receive a grade of zero for the exam or assignment. Exceptions will be made only for medical reasons, for which
formal written documentation is required.
Students should avoid making travel plans until after the examination timetable has been finalized. Students who
want to finalize travel plans earlier should book flights after the end of the examination period (see the University
Calendar). There will be no special accommodation if travel plans conflict with the examination.
Missed lectures
If you miss a lecture, it is your responsibility to obtain the information presented from other students.
Course Web Site and Notes
Notes will be posted to the course website (which is accessible by logging on at https://www.elearning.ubc.ca)
before each lecture. The notes for each Monday evening class will be posted to the website by 6:00 p.m. the day
before (i.e., Sunday evening). I will try to post the notes earlier, but I make no promises. It is your responsibility
to download the notes and bring a printed copy to each class. I will not be bringing additional copies to class.
If I fail to post the notes by 6:00 p.m. on Sunday, however, I will bring copies to class.
I will communicate with you using the course website’s email system. It is your responsibility to periodically
check your email on the site to make sure you don’t miss any important announcements.
Grading
The course will be graded as follows:
Percentage
90-100
85-90
80-84
76-79
72-75
68-71
64-67
60-63
55-59
50-54
0-49
Letter Grade
A+
A
AB+
B
BC+
C
CD
F (Fail)
2