Course Content
Behavioral relationship of bio-mass
Population and its relationship with resource depletion
Interrelationship between different components of Nepalese farming system
Nutrients cycle
Natural and agricultural resource conservation strategies
Use of limited farm resources for economic management
Learn agricultural and environmental economics – B.Sc agriculture
About Lesson
  • When a project is implemented, people other than its owners, workforce or customers are benefited or disadvantaged by its operation.
  • The operation of the project results in a net gain or loss to society but not to those who undertake the project. This category of the benefit or cost is defined as an external effect or externality.

There are two main problems associated with the externalities in the cost benefit analysis. These include

(a) identifying the externality, particularly in the advance of the project operation;

(b) quantifying the value of externality for incorporation into the cost-benefit analysis.

(c) The later involves measuring the impact of the externality on people’s welfare in monetary term and determining its economic value so that it can be included in the economic cash flow of the project.

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