Skip to main content

A Logical-Perequative Methodology to Define the Social Discount Rate for the Cost-Benefit Analysis Application

  • Conference paper
  • First Online:
Computational Science and Its Applications – ICCSA 2023 Workshops (ICCSA 2023)

Abstract

The need to define effective interventions for the urban sustainable development goals is always growing and recognized by the central governments. In the current economic situation, the adequate use of EU-funds for the investments to be carried out on the territory requires a targeted and valid implementation of the economic evaluations of the projects. In this framework, in the Cost- Benefit Analysis the Social Discount Rate (SDR) is ordinarily assessed by empirical approaches that neglect the main environmental, social and economic aspects of the nation in which the intervention will be realized. In this sense, in the present research an innovative logical-perequative methodology is proposed, able to take into account the specificities of the country through the detection of the main indicators related to the environmental, social and economic sustainability issues. The main advantage of the proposed methodology is the ability to determine the adequate corrective coefficient able to adjust the official SDR values, according to the real current sustainability levels of each country.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 79.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 99.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. United Nations: Agenda 2030 (2015). https://unric.org/it/agenda-2030. Accessed 12 Nov 2022

  2. Official journal of the European Union: consolidated version of the treaty on the functioning of the European Union, C 326, 26 October 2012. https://eur-lex.europa.eu/. Accessed 05 Jan 2023

  3. European parliament: economic, social and territorial cohesion. https://www.europarl.europa.eu/. Accessed 25 Jan 2023

  4. European commission: EU funding programmes. https://commission.europa.eu/. Accessed 08 Feb 2023

  5. European commission: communication from the commission to the European parliament, the council, the European economic and social committee and the committee of the regions, a union of equality: gender equality strategy 2020–2025 (2020). https://eur-lex.europa.eu/. Accessed 18 Jan 2023

  6. European commission: strategic engagement for gender equality 2016–2019 (2016). https://commission.europa.eu/. Accessed 20 Dec 2022. ISBN 978-92-79-53451-5

  7. National recovery and resilience plan (NRRP). www.mef.gov.it. Accessed 10 Jul 2022

  8. Next generation EU (NGEU) - Recovery fund. www.ec.europa.eu.it. Accessed 17 Jul 2022

  9. European commission, cohesion policy legislation 2014–2020. https://ec.europa.eu/. Accessed 04 Dec 2022

  10. European commission: european structural and investment funds 2014–2020: Official texts and commentaries (2015). https://ec.europa.eu/. Accessed 14 Nov 2022. ISBN (PDF): 978-92-79-39433-1

  11. European commission, New cohesion policy. https://ec.europa.eu/. Accessed 07 Dec 2022

  12. European commission, Directorate-general for regional and urban policy: guide to CostBenefit analysis of investment projects. Economic appraisal tool for cohesion policy 2014–2020 (2014)

    Google Scholar 

  13. Hwang, K.: Cost-benefit analysis: its usage and critiques. J. Public Aff. 16(1), 75–80 (2016)

    Article  Google Scholar 

  14. Priemus, H., Flyvbjerg, B., van Wee, B. (eds.): Decision-Making on Mega-Projects: CostBenefit Analysis, Planning and Innovation. Edward Elgar Publishing, Cheltenham (2008)

    Google Scholar 

  15. official journal of the European Union: regulation (EU) No. 1303/2013 of the European parliament and of the council of 17 December 2013 laying down common provisions on the European Regional development fund, the European social fund, the cohesion fund, the European agricultural fund for rural development and the European maritime and fisheries fund and laying down general provisions on the European regional development fund, the European social fund, the cohesion fund and the European maritime and fisheries fund and repealing council regulation (EC) No. 1083/2006. https://eur-lex.europa.eu/. Accessed 27 Nov 2022

  16. European commission: economic appraisal vademecum 2021–2027 - General Principles and sector applications (2021). https://jaspers.eib.org/LibraryNP/EC%20Reports/Economic%20Appraisal%20Vademecum%202021-2027%20-%20General%20Principles%20and%20Sector%20Applications.pdf

  17. Zhuang, J., Liang, Z., Lin, T., De Guzman, F.: Theory and practice in the choice of social discount rate for cost-benefit analysis: a survey. Working paper No. 94, Economics and research department, Asian development bank, May 2007. http://hdl.handle.net/10419/109296. Accessed 11 Dec 2022

  18. Tajani, F., Morano, P., Ntalianis, K.: Automated valuation models for real estate portfolios: a method for the value updates of the property assets. J. Property Invest. Finan. 36(4), 324–347 (2018)

    Google Scholar 

  19. Burgess, D.F., Zerbe, R.O.: Calculating the social opportunity cost discount rate. J. Benefit-Cost Anal. 2(3), 1–10 (2011)

    Article  Google Scholar 

  20. Ramsey, F.P.: A mathematical theory of saving. Econ. J. 38(152), 543–559 (1928)

    Article  Google Scholar 

  21. Boyko, C.T., et al.: Benchmarking sustainability in cities: The role of indicators and future scenarios. Global Environ. Change 22(1), 245–254 (2012)

    Google Scholar 

  22. Ibrahim, R., Abdelmonem, M.G., Mushatat, S.: The role of urban pattern indicators for sustainable urban forms in the developed countries: a pragmatic evaluation of two sustainable urban contexts. In: Proceedings of the 1st International Conference on Engineering And Innovative Technology (SU-ICEIT 2016), Engineering College at Salahaddin University, Erbil, Kurdistan, Iraq, 12–14 April 2016. CEIT, Erbil (2016)

    Google Scholar 

  23. Button, K.: City management and urban environmental indicators. Ecol. Econ. 40(2), 217–233 (2002)

    Article  Google Scholar 

  24. Can, A., Michel, S., De Coensel, B., Ribeiro, C., Botteldooren, D., Lavandier, C.: Comparison of noise indicators in an urban context. In: Inter-noise and Noise-con Congress and Conference Proceedings, vol. 253, no. 8, pp. 775–783. Institute of Noise Control Engineering (2016)

    Google Scholar 

  25. Abualhagag, A., Valánszki, I.: Mapping indicators of cultural ecosystem services: review and relevance to urban context. J. Landscape Ecol. 13(1), 4–24 (2020)

    Article  Google Scholar 

  26. Popovic, T., Barbosa-Póvoa, A., Kraslawski, A., Carvalho, A.: Quantitative indicators for social sustainability assessment of supply chains. J. Clean. Prod. 180, 748–768 (2018)

    Article  Google Scholar 

  27. Diaz-Chavez, R.: Indicators for socio-economic sustainability assessment. Socio-economic impacts of bioenergy production, pp. 17–37 (2014)

    Google Scholar 

  28. Castillo, J.G., Zhangallimbay, D.: The social discount rate in the evaluation of investment projects: an application for Ecuador, CEPAL Review No. 134 (2021). https://hdl.handle.net/11362/47523. Accessed 18 Oct 2022

  29. Saaty, T.L.: Decision making—the analytic hierarchy and network processes (AHP/ANP). J. Syst. Sci. Syst. Eng. 13, 1–35 (2004)

    Article  Google Scholar 

  30. Morano, P., Tajani, F., Di Liddo, F., Amoruso, P.: The public role for the effectiveness of the territorial enhancement initiatives: a case study on the redevelopment of a building in disuse in an Italian small town. Buildings 11(3), 87 (2021)

    Article  Google Scholar 

  31. Morano, P., Tajani, F., Anelli, D.: Urban planning variants: a model for the division of the activated “plusvalue” between public and private subjects. Valori e Valutazioni 28, 31–48 (2021)

    Google Scholar 

  32. Tajani, F., Anelli, D., Di Liddo, F., Morano, P.: An innovative methodology for the assessment of the social discount rate: an application to the European states for ensuring the goals of equitable growth. Smart and Sustainable Built Environment (2023). (In press)

    Google Scholar 

  33. Anelli, D., Tajani, F., Ranieri, R.: Urban resilience against natural disasters: mapping the risk with an innovative indicators-based assessment approach. J. Clean. Prod. 371, 133496 (2022)

    Article  Google Scholar 

  34. Locurcio, M., Tajani, F., Morano, P., Anelli, D., Manganelli, B.: Credit risk management of property investments through multi-criteria indicators. Risks 9(6), 106 (2021)

    Google Scholar 

  35. Spatari, G., Lorè, I., Viglianisi, A., Calabrò, F.: Economic feasibility of an integrated program for the enhancement of the byzantine heritage in the Aspromonte National Park. The case of Staiti. In: Calabrò, F., Della Spina, L., Piñeira Mantiñán, M.J. (eds.) New Metropolitan Perspectives. NMP 2022. LNNS, vol. 482, pp. 313–323. Springer, Cham (2022). https://doi.org/10.1007/978-3-031-06825-6_30

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Debora Anelli .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Di Liddo, F., Anelli, D., Morano, P., Tajani, F., Torre, C.M. (2023). A Logical-Perequative Methodology to Define the Social Discount Rate for the Cost-Benefit Analysis Application. In: Gervasi, O., et al. Computational Science and Its Applications – ICCSA 2023 Workshops. ICCSA 2023. Lecture Notes in Computer Science, vol 14109. Springer, Cham. https://doi.org/10.1007/978-3-031-37120-2_26

Download citation

  • DOI: https://doi.org/10.1007/978-3-031-37120-2_26

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-031-37119-6

  • Online ISBN: 978-3-031-37120-2

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics