I'm teaching benefit-cost analysis this semester. The course is for upper level economics majors (ECO 4660) and non-economics graduate students (ECO 5660). I have 6 books on my shelf but none of them are satisfactory for a variety of reasons (mostly, the theory is too deep and the estimating benefits chapters are dated). So, I'm using the EPA's Guidelines for Preparing Economic Analyses supplemented with the Haab and Whitehead Encyclopedia. Here is the reading list (suggestions welcome!):
Topic |
EPA Guidelines (Required) |
Encyclopedia (Recommended) |
|
1 |
Introduction & |
Chapter 1, 2; |
Benefit–Cost Analysis, Executive Order 12291, Guidelines for Preparing Economic Analyses, Welfare |
2 |
Market Failure |
Chapter 3, Appendix A |
Externality, Public Goods |
3 |
Decision Rules & |
(Boardman et al. Chapter 7) |
Risk and Uncertainty |
4 |
Baseline |
Chapter 5 |
|
5 |
Discounting |
Chapter 6 |
Discounting |
6 |
Estimating Benefits |
Chapter 7 |
Averting Behavior, Benefit Transfer, Choice Experiments, Contingent Behavior, Contingent Valuation, Experimental Economics and Valuation, Hedonic Price Method, Meta-Analysis, Nonmarket Valuation, Passive Use Value, Travel Cost Method, Value of Statistical Life |
7 |
Estimating Costs |
Chapter 8 |
Pollution Abatement Costs |
8 |
Economic Impacts |
Chapter 9, Appendix C |
Green Jobs |
9 |
Distribution |
Chapter 10 |
Environmental Justice, Welfare and Equity |
10 |
Case Studies |