Climate Resilience and Benefit–Cost Analysis: A Handbook for Airports (2019) / Chapter Skim
Currently Skimming:
Pages 113-118
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From page 113... ...
113 The federal government has published general guidelines for conducting benefit–cost and cost-effectiveness analyses for federal programs under Office of Management and Budget (OMB) Circular No.
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114 Climate Resilience and Benefit–Cost Analysis: A Handbook for Airports • Identifying and screening reasonable investment alternatives, • Determining the appropriate evaluation period, • Establishing reasonable level of effort, • Identifying, quantifying, and evaluating benefits and costs, • Comparing benefits and costs of alternatives, • Performing a sensitivity analysis, and • Making recommendations (FAA 1999b)
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From page 115... ...
FAA Guidance on Benefit–Cost Analysis 115 4. How should the scenario case be specified?
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116 Climate Resilience and Benefit–Cost Analysis: A Handbook for Airports Level of Effort The FAA explicitly recognizes that the appropriate level of effort for a BCA may depend on many factors, and it suggests that the effort should be tailored to factors such as magnitude and complexity of the project, number of practical alternatives, availability of data, and sensitivity of benefits and costs to assumptions. In addition, FAA guidance recognizes that practical considerations include the availability of time and budget; this is obviously a major concern for many smaller airports with limited resources.
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From page 117... ...
FAA Guidance on Benefit–Cost Analysis 117 • Airport cleanup/restitution costs; • Costs due to personal injury or death; and • Loss of local business activity. Some of these impact categories reflect social costs not incurred directly by the airport itself.
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118 Climate Resilience and Benefit–Cost Analysis: A Handbook for Airports two might diverge.39 In 2003, OMB issued additional guidance via Circular A-4 suggesting that for projects involving regulatory analysis, separate estimates should be presented using both 7% and 3% real discount rates (U.S. Office of Management and Budget 2003)
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