CBA and CEA: a Discussion Tosihiro Oka Fukui Prefectural University November 15, 2003 At Kobe University.

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CBA and CEA: a Discussion Tosihiro Oka Fukui Prefectural University November 15, 2003 At Kobe University

CPLYS’s for chemical risk control PolicyCPLYS (million yen)Source Ban of chlordane 45Oka et al, 1997 Mercury (caustic soda production)570Nakanishi et al, 1998 Mercury (dry batteries) 22Nakanishi, 1995 Benzene control230Kajihara et al, 1999 Dioxin (emergency) 7.9Kishimoto et al,2001 Dioxin (long-term)150Kishimoto et al,2001 NOx for automobiles 86Oka, 1996

Value of a life-year VSL= 100 million to 1 billion yen Life expectancy = 40 years →Value of a life-year=2.5 to 25 million yen

Limitations to CBA Equity –Distributive equality of risks and benefits –Intergenerational equity or sustainability Unreliability or uncertainty in benefit estimation

Appraisal of forest road construction projects Benefit/Cost ratio (A)/(B) Cost per area (\ million/ha) Forestry Agency Guidelines Method (A) Fukui City Committee Method (B) Western Echizen No.4 line Ago No.1 line Kamomedani line