China
Africa
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Concluding remarks
Published in Doramas Jorge-Calderón, Aviation Investment, 2020
Appraisal resources could then perhaps be more productively deployed to assist the project conception decision making process. There, relatively simple analyses, focusing on key benefits and costs, where alternative project conceptions and designs can be modified at little analysis cost, can pay a critical role in informing an evolving project conception and planning discourse. This suggestion points towards the underlying rationale for conducting economic appraisals. Aviation uses large amounts of resources, and whereas it generates much value, it is not free from waste or from large potential losses. Managers, regulators and planners need to make informed choices regarding the conception of the project, including whether to carry out the project at all. When making such choices, viewing the project from a societal, economic perspective helps in identifying areas of risk and opportunity that escape a financial analysis. More generally, conducting an economic appraisal gives as comprehensive a view as can be gathered about the value of an investment, both to society and to the investor, whether from the public or private sector.
Concluding Remarks
Published in Doramas Jorge-Calderón, Aviation Investment, 2014
Appraisal resources could then perhaps be more productively deployed to assist the project conception decision making process. This suggestion points towards the underlying rationale for conducting economic appraisals. Aviation uses large amounts of resources, and whereas it generates much value, it is not free from waste or from large potential losses. Managers, regulators and planners need to make informed choices regarding the conception of the project, including also whether to carry it out at all. When making such choices, an economic evaluation of the investment identifies areas of risk and opportunity that escape a financial analysis. More generally, conducting an economic appraisal gives as comprehensive a view as can be gathered about the intrinsic viability of an investment, both to society and to the investor, whether from the public or private sector.
Bioethanol processing from wheat straw: investment appraisal of a full-scale UK biofuel refinery
Published in Biofuels, 2023
Geoffrey P. Hammond, Niall McCann
Economic appraisal evaluates the costs and benefits of any project, programme, or technology in terms of outlays and receipts accrued by a private entity (household, firm… etc.) as measured through market prices [54]. Financial appraisal is used by the private sector and omits so-called environmental ‘externalities’. In contrast, economic cost-benefit analysis (CBA) is applied to take a society-wide perspective, with a ‘whole systems’ view of the costs and benefits [55, 56]. It accounts for private and social, direct and indirect, tangible and intangible elements; regardless as to whom they accrue and whether or not they are accounted for in purely financial terms [54, 55]. A further distinction between financial appraisal and CBA is in the use of the discount rate to value benefits and costs occurring in the future [55, 56]. Financial appraisal uses the market rate of interest (net of inflation) as a lower bound, and therefore indicates the real return that would be earned on a private sector investment.