Doing Benefit-Cost Analysis for Water Projects: A Primer introduces the fundamental principles and practical steps for evaluating water investments using economic analysis. It explains how to identify, quantify, and compare the full range of project costs and benefits over time, including capital, operation, maintenance, and environmental impacts.
The primer emphasizes key concepts such as opportunity cost, discounting, and the use of economic (shadow) prices to reflect true resource values. It highlights the importance of including non-market benefits, such as improved health outcomes, time savings, and environmental improvements. Guidance is provided on handling uncertainty through sensitivity analysis and risk assessment.
Overall, the primer supports decision-makers in selecting water projects that maximize net social benefits, ensuring efficient allocation of resources while balancing financial viability, social equity, and long-term sustainability in water sector investments.
