Economics · Cost-Benefit Analysis
Consider the following statements about Cost-Benefit Analysis (CBA) in environmental economics: I. CBA requires all costs and benefits to be expressed in monetary terms. II. A higher discount rate gives greater weight to future environmental damages. III. The Net Present Value (NPV) rule states a project should be accepted if NPV > 0. IV. Shadow pricing is used in CBA when market prices do not reflect true social value. Which of the above are CORRECT?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1I, II, III and IV
- 2I and II only
- 3II and III only
- 4I, III and IV only✓
Correct answer
I, III and IV only
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