Cost-benefit analysis of the exploitation of natural resources for master planning to the coastal zone of Quang Binh, Vietnam
Authors: Le Nam, Tran Nghi, Hoang Phan Hai Yen, Do Thi Ngoc Thuy, Trinh Hoai Thu, Tran Thi Thuy Huong, Nguyen Dinh Thai, Luong Thi Thanh Vinh, Nguyen Thi Hoai, Mai Phuong Ngoc
Adjunct Proceedings of the 35th Enviroinfor conference
: 1 : 43-54
Publishing year: 9/2021
Cost-benefit analysis (CBA) is a method of determining and comparing costs and benefits of a program, policy, or project to evaluate whether it will increase or decrease economic benefits to society. The purpose of the CBA is to (i) provide information about whether to invest in a project or not and (ii) provide a basis for comparing options for a project. Indicators used in the calculation include net present value (NPV), which is the value of net benefits over the years that have been converted to the monetary value of the base year and are based on the discount rate (r) and the activity time (t) of the project to convert the cash flows of benefits and costs back to the base year. Coastal resources in Quang Binh province comprise four main groups: (1) tourism resources, (2) fishery resources, (3) energy resources, and (4) glass sand resources. To determine which types of resources allow for exploitation in integrated planning and coastal economic sustainable development, it is necessary to conduct the cost-benefit analysis. Energy resources have not been exploited so far and have only been evaluated in terms of potential, so there are no data to calculate for these resources. This paper presents a cost-benefit analysis of three scenarios: (1) exploitation of the tourism resource, (2) exploitation of the fisheries resource, and (3) exploitation of glass sand. The results show that the analyses for the exploitation of tourism and aquatic resources have an NPV value > 0 while the exploitation of glass sand has an NPV value < 0. Therefore, two types of resources with NPV > 0 value are selected for inclusion in the exploitation planning for sustainable development.
cost-benefit, integrated planning, sustainable development