chapter 3 Flashcards
1
Q
preservation v development
A
preservation: all damages prevented
development: jobs, infrastructure, goods for consumers, wealth for owners
2
Q
opp cost for preservation
A
development and vice versa
3
Q
issues in benefit estimation
A
primary v secondary effects: actions trigger both primary and secondary actions
accounting stance: geographical scale at which benefits are measured, local or national
with and without principle: only account for direct result benefits
4
Q
major difference between private and social rates
A
risk premium: additional cost of capital required to compensate the owners of this capital when the expected and actual returns may differ
