ECONOMIC ASSESSMENT. Reference: ECONOMIC ASSESSMENT Exhibit B-1, p. 6; Order G-278-19, Appendix 1, p. 15 NPV Calculations and Scenario Analysis On page 15 of the Reasons for Decision, attached as Appendix 1 to Order G-278-19, the BCUC states: [T]he Panel is prepared to consider accepting the subject EPA renewals for periods shorter than 40 years to allow for the conclusion of BC Hydro’s next [Integrated Resource Plan (IRP)] proceeding, at which time there may be further clarity on BC Hydro’s long term energy needs and supply alternatives to meet demand. While accepting these EPA renewals as being in the public interest for even a shorter period than 40 years will likely result in some economic harm to ratepayers, the Panel considers this economic harm to be minimal.
ECONOMIC ASSESSMENT. This component of the project was carried out through a contract with Paterson Earth & Water Consulting. Details on how this work was carried out are in the contractor’s final report. Briefly, a literature review was carried out using relevant data and information from Canada and the United States to develop a comprehensive strategic management plan for the control and management of invasive mussels in Alberta’s irrigation infrastructure. The assessment also included a cost estimate for wide-spread control in southern Alberta. The development of the management plan was also facilitated by direct discussion with staff of several irrigation districts. The study addressed five key objectives:
ECONOMIC ASSESSMENT. An economic assessment will be made, based on the proposal by each bidder, according to the following formula: ó ó () = 70 • á ó + 30 Any proposal that falls 10% below the average of the proposals made will be considered disproportionate. In that case, a detailed report will be requested in order to see the justification for the quotation offered. The proposal will be rejected if it is considered to have been submitted without sufficient forethought, potentially jeopardising the quality of the service. Proposals deemed to have been submitted without sufficient forethought will not be considered when an economic score is allocated.
ECONOMIC ASSESSMENT. An economic assessment will be made, based on the proposal by each bidder, according to the following formula: 𝑃𝑢𝑛𝑡𝑢𝑎𝑐𝑖ó𝑛 𝐸𝑐𝑜𝑛ó𝑚𝑖𝑐𝑎 (𝑃𝐸) = 70 • 𝐵𝑎𝑗𝑎 𝑑𝑒 𝑙𝑎 𝑂𝑓𝑒𝑟𝑡𝑎 𝐵𝑎𝑗𝑎 𝑑𝑒 𝑙𝑎 𝑂𝑓𝑒𝑟𝑡𝑎 𝑚á𝑠 𝐸𝑐𝑜𝑛ó𝑚𝑖𝑐𝑎 + 30 Any proposal that falls 10% below the average of the proposals made will be considered disproportionate. In that case, a detailed report will be requested in order to see the justification for the quotation offered. The proposal will be rejected if it is considered to have been submitted without sufficient forethought, potentially jeopardising the quality of the service. Proposals deemed to have been submitted without sufficient forethought will not be considered when an economic score is allocated.
ECONOMIC ASSESSMENT review of local/regional economic trends affecting the area residential market. The assessment will focus on factors that have a direct bearing on the rental and ownership housing markets. This will include assessment of trends in labor force and employment as well as expectations regarding future labor force needs as an indicator of housing need.
ECONOMIC ASSESSMENT. The final report included nine key conclusions and eight recommendations, which are listed below. Further details and supporting information for the conclusions and recommendations are in Paterson Earth & Water Consulting (2018).
ECONOMIC ASSESSMENT. We follow the standard valuation procedure adopted in ExternE (1999), New-Ext (2004), Cafe (2005a, b), which consists in monetary values derived from stated preferences surveys, hence relying on preference-derived values rather than market-derived values. We agree with Cafe (2005b) that the use of a Value of a Statistical Life (VSL) to value acute mortality is certainly not relevant, considering “that a better estimate of the average loss of life expectancy amongst those affected by acute effects of air pollution is around 1 year” (Cafe, 2005b, p. 46). Consequently, a Value Of a Life Year (VOLY) is preferred to value the short-term effects of PM reduction on mortality (with the assumption that the gain in life expectancy associated with each related premature death is 1 year), and a VSL for long-term effects of air pollutants on mortality. Note that when long-term mortality effects are expressed in terms of number of years of life saved, a VOLY will be used for their assessment. We choose to rely on European studies when selecting the monetary values to be used (see Table 1). First, we favour the mortality valuation study undertaken for the EC DG Research- funded New-Ext (2004) project and used in Cafe (2005a, b) for two reasons: it estimates both VSL and VOLY values and it is representative of the European population. We choose the median VSL value (annual change 5:10,000 scenario) as low value and the mean VSL and VOLY (annual change 5:10,000 scenario) as high values. For the VOLY’s low value, we decided to take the recent results from the NEEDS program (Desaigues et al., 2010, based on 3 months’ life expectancy (LE) gain with protesters and outliers deleted) realized on ten European countries. Finally, the respective arithmetic means of high and low values provide the central VSL and VOLY values. Note the low – high range roughly represents a +/- 33% divergence from the resulting central VSL value (€ 1,655 million). Table 1 Monetary values chosen to assess mortality health effects (in € 2005) Chronic mortality Chronic and acute mortality Source VSL VOLY
ECONOMIC ASSESSMENT. Based on the ship and voyage models data, ConceptSHIP provides the means to determine some economic measures of merit of the investment. The relations between the freight value and the resulting net present value (NPV) and internal rate of return (IRR) can be explored, either as input or as target values, and estimates of the cash flow during the operational life of the ship can be also carried out.
