Valuation of public projects by the method of cost-effectiveness analysis

Abstract

Scientists hold intense discussions which method to select for the valuation of publ projects in order to evaluate the total social benefits generated by a public project and to make the mo effective investment decision. The characteristics of public projects and the peculiarities and problems < their valuation revealed in the paper have an influence on the selection of public project valuatic methods. The paper presents a methodology for cost-effectiveness analysis adapted for the valuation t public projects, while the evaluation of investment alternatives for the selected public project makes possible to look at the problems of public project valuation from the practical approach. The research c the paper is aimed at revealing the advantages and limitations of the cost-effectiveness method used t valuate public projects in order to formulate a theoretical framework for improving public projec valuation methods or developing new valuation models.