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Samhällsekonomisk utvärdering utav friluftsbaden i Klippans kommun

Welin, Karl-Olof LU (2012) NEKN01 20121
Department 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)
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author
Welin, Karl-Olof LU
supervisor
organization
course
NEKN01 20121
year
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},
  keyword      = {Cost-benefit analys,samhällsekonomisk utvärdering,friluftsbad,konsumentöverskott},
  language     = {swe},
  note         = {Student Paper},
  title        = {Samhällsekonomisk utvärdering utav friluftsbaden i Klippans kommun},
  year         = {2012},
}