Samhällsekonomisk utvärdering utav friluftsbaden i Klippans kommun
(2012) NEKN01 20121Department of Economics
- Abstract
- A cost-benefit analysis is performed following inevitable renovation requirements for the public outdoor swimming facilities situated in Ljungbyhed and Östra Ljungby. The purpose of the thesis is to evaluate whether or not it is economically acceptable to perform the necessary investments to keep the facilities operating.
The benefits are estimated using observed data regarding the number of visitors and prices for the two facilities over the last five years. Values for both costs and benefits are retrieved from official records and various reports issued by the municipality. The consumer surplus is calculated using the aid of a secondary source, the work of Késsene and Butzen (1987), who estimated the price elasticity of demand for... (More) - A cost-benefit analysis is performed following inevitable renovation requirements for the public outdoor swimming facilities situated in Ljungbyhed and Östra Ljungby. The purpose of the thesis is to evaluate whether or not it is economically acceptable to perform the necessary investments to keep the facilities operating.
The benefits are estimated using observed data regarding the number of visitors and prices for the two facilities over the last five years. Values for both costs and benefits are retrieved from official records and various reports issued by the municipality. The consumer surplus is calculated using the aid of a secondary source, the work of Késsene and Butzen (1987), who estimated the price elasticity of demand for recreational swimming to -1.479. A sensitivity analysis is performed on critical variables concluding that any uncertainty regarding the selected variables is not likely to affect the result of the cost-benefit analysis.
The final result indicates that both facilities are inefficient solutions with significantly negative net present values. Following the above the most efficient solution is to consider shutting down both facilities. The net present value of shutting down each facility is significantly larger than for making necessary investments, it is, however, important to point out that the net present value for shutting down is also negative due to the associated costs. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/3053497
- author
- Welin, Karl-Olof LU
- supervisor
- organization
- course
- NEKN01 20121
- year
- 2012
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Cost-benefit analys, samhällsekonomisk utvärdering, friluftsbad, konsumentöverskott
- language
- Swedish
- id
- 3053497
- date added to LUP
- 2012-09-27 11:27:27
- date last changed
- 2012-09-27 11:27:27
@misc{3053497,
abstract = {{A cost-benefit analysis is performed following inevitable renovation requirements for the public outdoor swimming facilities situated in Ljungbyhed and Östra Ljungby. The purpose of the thesis is to evaluate whether or not it is economically acceptable to perform the necessary investments to keep the facilities operating.
The benefits are estimated using observed data regarding the number of visitors and prices for the two facilities over the last five years. Values for both costs and benefits are retrieved from official records and various reports issued by the municipality. The consumer surplus is calculated using the aid of a secondary source, the work of Késsene and Butzen (1987), who estimated the price elasticity of demand for recreational swimming to -1.479. A sensitivity analysis is performed on critical variables concluding that any uncertainty regarding the selected variables is not likely to affect the result of the cost-benefit analysis.
The final result indicates that both facilities are inefficient solutions with significantly negative net present values. Following the above the most efficient solution is to consider shutting down both facilities. The net present value of shutting down each facility is significantly larger than for making necessary investments, it is, however, important to point out that the net present value for shutting down is also negative due to the associated costs.}},
author = {{Welin, Karl-Olof}},
language = {{swe}},
note = {{Student Paper}},
title = {{Samhällsekonomisk utvärdering utav friluftsbaden i Klippans kommun}},
year = {{2012}},
}