Inderscience Publishers

A CBA model of a hydro project in Sri Lanka

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This study demonstrates an empirical application of a cost benefit analysis for hydro projects, which includes social and environmental as well as economic aspects. The model treats uncertain inputs by specifying them as probability distributions. A proposed hydro project in Sri Lanka is used as a case study. The study uses time variable discount rates related to economic growth and investigates the sensitivity of the net present value to the choice of a discount rate.

Keywords: cost benefit analysis, dam, hydropower, Sri Lanka, sustainable development, uncertainty

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