Case studies benefit estimation

This chapter is structured as follows. The next section describes available benefit estimation methods and the choice of estimation method for this case study. The third section is devoted to some issues related to the application of the selected methodology - the contingent valuation method (CVM) - in the Italian context. Design of the CVM study constitutes another section. The results and empirical methods of the study are then presented, followed by a discussion. 

As was explained in the hegirming of this chapter, the background to this study was partly that an analysis of socially efficient contamination levels could not be undertaken due to lack of information on benefits. This case study has now provided some benefit estimates. However, the conclusions drawn above imply that they have to be used with great care, since it is not entirely clear for what benefits they are valid. 

All interventions were compared to the situation in 2000 and costed to include full investment and annual running costs. The total annual costs of the two outlined here were estimated to be (a) US 11.3 billion, (b) US 136.5 billion. It is easy to lose an awareness of individuals in global calculations of this type, so it is helpfiil to consider the annual cost per person receiving interventions (a) US 5.4, (b) US 20.6. These are very modest sums in the context of the benefits to the individuals. There are, of course, many uncertainties in such calculations and detailed country case studies are required. However, it should be noted that the annual cost of the least expensive intervention is a tiny 0.7 % of world annual military expenditure. Even the annual cost of the most expensive intervention is only 8 % of world annual mihtary expenditure. That many deaths and much suffering could be relieved by the diversion of relatively small amounts of the budget for the preparation for war to the supply of essential resources to the poorest of the world s population is a major injustice that should be of widespread concern. ... 

---