Economic-environmental Impact and Evaluation Model: a case study of Hydro-power /Water Supply/ Railway

Abstract

This work aims at measuring the marginal effect of a key variable such as a hydropower generation/ water supply or railway system upon a set of relevant policy variable such as Economic variables, Environmental Impact Analysis. Only the impacts of the social-economic subsystem (E) and geographic-demographic subsystem (G) upon the environmental subsystem (M) is assessed. Therefore, the environmental profile is the central pivot of the analysis. Cost- benefit analysis was criticized for several reasons such as neglect of the equity criteria, does not incorporate uncertainties etc. in the survey of environmental evaluation, it is evident that in the framework of neoclassical or cost benefit analysis the evaluation of environmental commodities has to be based on market prices. When market prices do not exist for environmental commodities artificial price e.g. shadow prices have to be calculated in order to ensure an operational result. Methodology involves an Integrated Structure of Economic-environmental survey which was investigated in greater detail. In conclusion several methods developed and employed so far cannot be regarded as satisfactory evaluation techniques in an operational environmental policy analysis, because intangible and incommensurable effects are very hard to in corporate in all these methods. The conclusion is justified that any attempt to transform an un-priced impact into a single dimension must fail, unless corrected with Bayesian decision model or Markov chains, which could take care of uncertainties, equity, risk, time effect, and poor data availability etc