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Benchmarking in water project analysis
Author(s) -
Griffin Ronald C.
Publication year - 2008
Publication title -
water resources research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.863
H-Index - 217
eISSN - 1944-7973
pISSN - 0043-1397
DOI - 10.1029/2008wr006868
Subject(s) - benchmarking , benchmark (surveying) , resource (disambiguation) , authorization , best practice , computer science , water sector , environmental economics , business , operations research , management science , engineering , economics , water supply , environmental engineering , management , computer security , marketing , geography , computer network , geodesy
The with/without principle of cost‐benefit analysis is examined for the possible bias that it brings to water resource planning. Theory and examples for this question are established. Because benchmarking against the demonstrably low without‐project hurdle can detract from economic welfare and can fail to promote efficient policy, improvement opportunities are investigated. In lieu of the traditional, without‐project benchmark, a second‐best‐based “difference‐making benchmark” is proposed. The project authorizations and modified review processes instituted by the U.S. Water Resources Development Act of 2007 may provide for renewed interest in these findings.