Cost-effectiveness analysis (CEA) is an evaluation technique in which an assessment of the construction costs of alternative options is carried out with respect to the population served. CEA compares the cost of interventions with their intended impacts. A specific CEA approach is proposed for the majority of Rural Transportation Infrastructures (RTI) where traffic is less than 50 motorized four-wheeled vehicles per day (for a basic access road) (Lebo & Schelling 2001).
CEA is calculated as follows.
The CEA of the four selected roads is given in Table 5-24.
Table 5 24 Cost Effectiveness Analysis
S. No. Name of the Rural Road Cost, NRs. Population Cost/Population Rank
1 Kalakate-Gadawa-Rajpur-Road 136,775,528.00 20475 6680.12 II
2 Bhaisahi-Simaltara-Hasipur- Shantipur Road (BP Marga) 127,155,555.00 16007 7943.75 III
3 Pawannagar- Purandhara Road 77,084,139.14 14300 5390.54 I
4 Bijauri-Manpur-Duruwa Road 78,149,374.27 5250 14885.60 IV
5.7 Application of
…show more content…
The latter is, therefore, critical in that it determines the level from which incremental benefits from the implementation of a project are derived.
Presently the road project is receiving inadequate maintenance and is deteriorating over time. For simplification of economic evaluation of the project, ’ Without Project ‘ situation is assumed to be the situation where quality of service provided by the road is maintained at its present level by sustaining the condition of the road surface at its current level. Any further deterioration is controlled by maintenance activities aimed at sustaining the present situation. The level of expenditure on maintenance activities in order to ensure the situation is defined as ‘holding maintenance’ cost. The holding maintenance cost is assumed to include routine and recurrent maintenance
There are several basic approaches that can be utilized when conducting economic evaluations for any new health care intervention; which can include medications that are designed for the treatment and prevention of disease and how to relate the effectiveness with the overall monetary value of the new treatment. The economic tools that can be employed to perform such an analysis can be broken down into four basic parts that consist of cost-minimization analysis (CMA), cost-effectiveness analysis (CEA), cost-benefit analysis (CBA) and cost-utility analysis (CUA). These four categories will contain the major financial analytical techniques employed when evaluating medical treatments and interventions along with other types termed cost-consequence
As a college student, you are required to make decisions all the time. These decisions differ in there level of seriousness and way it can affect you as an individual and how they may affect your academic performance. I came to college as an athlete, and my choice to be a college athlete meant my life would be different from traditional students. The rigor of my sport meant i would have weights every morning, and practice in the afternoons. It meant I would have to miss class to travel for games but that is what I signed up for.
Cost-effectiveness analysis (CEA) is a seemingly straightforward analytical tool that is used to assess complex public policy decisions, however CEA does not always account for all intangible benefits. Cost-effectiveness is used to help pinpoint neglected opportunities for improving health and then allotting scarce resources to obtain better health outcomes for society. Since Britain’s has limited resources to concentrate on public health issues that have varying outcomes with regards to survival and quality of life. Cost-Utility Analysis (CUA), part of the cost-effectiveness family is an appropriate technique to utilize when making such decisions because it allows different health outcomes to be transformed to a common unit, known as QALYs (quality-adjusted life year). Yet, societal benefits and costs are often not considered for CUA. Additionally, measuring QALYs is harder than measuring the monetary value of life through improvements in health, as is done with cost–benefit analysis. Cost-Benefit Analysis (CBA), also a part of the cost-effectiveness family is used to recognize value in terms of economic efficiency, in that it improves allocation of scarce resources. In addition, some individuals believe that life is invaluable and there are moral problems with assigning a value on human life.
Frequently claims are made that mass transit can provide various solutions for the economy, the environment, and the energy crisis, in addition to improving the overall quality of life (2). Mass transit provides the following solutions to various economic problems. Firstly, as a result of the recession we now face, unemployment is substantially higher t...
The Department of Transportation released a report analyzing three different surveys and studies taken in 2011 and 2012. They found that, at any giv...
A transportation network must be judged for its cost-effectiveness. The American Association of State Highway Officials (AASHO) in 1952 made its tenet, "that a profit should be returned on an investment applies as well to highway projects as to general business ventures."2 Cost-effectiveness includes safety, ease of use, and flexibility in the eyes of both the local government and individual users. Unfortunately, "little or no supporting evidence"3 exists and few studies compared the systems. Since no monetary value can be placed on human life, comparisons of safety are even fewer and less thorough. A simple account of accident records, however, is a good judge of safety. Studies of system costs, ont the other hand, are purely monetary and more frequent. From the operator's standpoint, costs break down to overhead and construction, maintenance of cars and lines, operation costs, and profits. From the users' standpoint the only cost is the fare.
Cost-benefit analysis is an economic approach decision making that compares the strengths and weaknesses of each choice in order to determine which option will provide the most amount of benefits and the least amount of costs. This method is often applied to decisions that concern the environment as an attempt to determine the value of the environment before following through with decisions to preserve or utilize the environment for resources. Although many economists believe that cost-benefit analysis is an efficient way to make most decisions, some philosophers suggest that certain things, including the environment, have innumerable values, therefore, cost-benefit analysis may not be a reliable method to make decisions regarding these things.
Finding ways to move goods from one point to another at a reasonable cost and within an acceptable time frame is a growing challenge for global businesses today. The costs and risks associated with transportation are increasing with the advent of globalization and low-cost-country sourcing. Even for companies with local operations only, they have to supply their products to various parts of a country which increases the costs and risks. Since the cost of gasoline has been on an upward trend, high level of efficiency in transportation is required to lower the costs involved and the risks associated with the costs. Costs concepts in transportation include economic, social and accounting costs. The risks and costs involved increases if the various modes of transport are used. There has been concern over many businesses failure to strategically think when they employ multimodal transportation services. Many businesses prefer the least expensive multimodal model instead of choosing the most effective; this trade-off is very expensive with hidden costs and risks increasing significantly (Molenaar, Anderson, Schexnayder, National Research Council (U.S.)., National Cooperative Highway Research Program., American Association of State Highway and Transportation Officials., & United States, 2010).
Introduction Cost-effectiveness analysis (CEA) is a form of economic analysis that compares the relative costs and outcomes/effects of two or more scenarios. The CEA is typically expressed as a ratio, where the denominator is a gain in health using a natural unit of measurement (years of life, cases of flu prevented, etc.). and the numerator is the cost associated with that health gain. Most clinical studies express gains in health in terms of disease-specific measures, such as number of heart attacks avoided or cases of influenza prevented. Although this is useful for particular treatments related to those health conditions, those measures do not allow for comparison across diseases.
Economic benefits for local and national economy as well as some less tangible benefits play a major role when investments are made on bicycle, pedestrian, and open space facilities. Some of the economic benefits from such infrastructures come from increased retail sales, conservation and creation of jobs, reduced health care costs, and real estate appreciation. The facilities discussed also ease road traffic and lead to a better preservation of roads. Investing in these facilities also improves the air quality, preserves carbon-based energy, and aids in creating more active communities. I will review five articles that will quantify each benefit and translate them into economic value.
... will create and increase work efficiency. When more projects are getting completed at faster rates and in the right way they company will be able to take on new tasks. Whenever a company can take on more tasks, of course, it will increase its revenue. As revenue increase everyone part of the institution will benefit.
The development of every nation hinges on the effectiveness of their transportation systems. Movement of goods, services and people to and from locations is made possible by transportation systems. The importance of effective transportation systems cannot be over-emphasized. Many countries face transportation problems and my country Ghana is no exception. A trip of about 30 minutes usually takes about an hour or more due to traffic jams. This is seriously impacting productivity and has become a topical issue in the country. The situation is the same in Uganda where I currently work. To this end, Transportation Engineers are needed to design roads/ highways that will stand the test of time, plan effective traffic management systems to reduce
One of these option that should be considered in each and every analysis, and also often to the choice, never use alternative ways. The chance of the one cost of making a unit choice over another should also be considered. There are some times also the non-economic factors to be considered, like color, style, public image, etc.; such are the factors and are termed assigned ways, Finance and as well as generated profit are numerously considered, for each and every alternative, for an analysis period that is one of the either of a fixed number of years or the estimated life of the project. The salvage value is forgotten so many times, but is actually important, and is either the net cost or revenue for discounting the parameters the project. Some of the important changes, depreciation, the resource depletion, taxes actually credits, accounting, cost estimations, or capital financing. All of these topics are primary skills and knowledge areas in the field of cost engineering. Since when engineering is a major part of the manufacturing sector of the economy, engineering industrial economics is an important part of industrial or business economics. Major of the topics in the engineering industrial economics are:
The importance of project management cannot be overstated. For starters it is important that project management provides a flexibility and structure. Project management creates flexible and well-structured business organizations by combining two organization needs perfectly. The organizational needs are determined by making the organization adaptable due to constant changes in the business, secondly organization is extremely important for creating structure. What is most important is that
Economies thrive on the ability of mobility. Mobility allows people to go to work, attend school and travel far and wide by using some form of transportation. It allows people and ideas to mix more freely. Over time, mobility has taken many forms, from the backs of animals, to carriages and now the automobile. Since the invention of the automobile, we have been able to decrease transportation costs, travel vast distances and decrease travel times. We are able to facilitate relationships, foster trade between places and find better jobs. However, due to the inaccurate pricing of the roads, driving cars has turned from an innovation to pure frustration. The problem is traffic congestion; the increased usage of cars has created slower speeds and longer travel times due to greater demand for the road than the road has to offer. Roughly 3.4 million Americans endure extreme commutes, in which the trip to work and back eats up at least three hours of each day (Balaker, Staley 2006). Congestion slows life down by causing massive delays, eating away at valuable time and productivity. This has become a major issue because people are stuck in traffic when they do not need to be and conditions will only continue to get worse without government intervention. Many solutions have been offered and discussed but few have been implemented. This paper will serve to outline the economic theory behind traffic congestion, alternative policy options there are for dealing with traffic congestion and ultimately what the best strategy is to solve this problem. The solution I propose is to price the highways accurately to achieve the optimum number of vehicles on the road.