Open AccessCost Benefit Analysis of the Exploitation of Several Important Natural Resources in the Coastal Zone in Binh Thuan Province
Author(s) -
Xuyến Dương Thanh
Publication year - 2017
Publication title -
tạp chí khoa học đại học quốc gia hà nội: nghiên cứu giáo dục (vnu journal of science: education research)/tạp chí khoa học đại học quốc gia hà nội: các khoa học trái đất và môi trường (vnu journal of science: earth and environmental sciences)
Language(s) - English
Resource type - Journals
eISSN - 2615-9279
pISSN - 2588-1094
DOI - 10.25073/2588-1094/vnuees.4124
Subject(s) - net present value , business , natural resource , discounted cash flow , present value , profit (economics) , cash flow , environmental economics , cost–benefit analysis , tourism , net profit , environmental resource management , natural resource economics , economics , finance , geography , ecology , macroeconomics , archaeology , production (economics) , biology , microeconomics
The cost benefit analysis (CBA) is a method of identifying and comparing the costs and benefits of a program, policy, or project to evaluate a project that increases or decreases economic welfare of society. CBA has the role of providing information for: 1/ Decide whether to invest in the project; 2/ Provide a basis for comparing options for selecting a project. The indicator used for calculation include: - Net Present Value, Net Present Value (NPV) is the net present value of the net benefit over the years converted to the monetary value of the base year. According to the discount rate (r), and the lifetime of the project – called t (years) to convert the cash flow and cost base year. If NPV value> 0, the project will be done, take back profit. If the NPV <0, project should not be done because it will make environmental damage, human health in society is more than economic benefit that prevention. According to calculation, investing tourist projects, fisheries exploitation projects, and wind electricity construction have positive NPV. Given that the Titan mining project has sound of NPV, the damage will hurt the society more than the business benefits of selling the product.
The coastal resources of Binh Thuan Province are divided into five outstanding groups, of which four are: (1) Titan mineral resources; (2) tourism resources; (3) fishery resources; (4) Energy resources and (5) Sub-categories include resources such as forest resources, land resources and water resources. In order to assess the value of specific types of resources in Binh Thuan's coastal zone, it is possible to select three types of resources to calculate the cost of benefits in the exploitation process for socio-economic development, namely tourism resource exploitation, mineral resources exploitation and exploitation of aquatic resources. The results show that the exploitation of tourism resources and exploitation of aquatic resources has the NPV> 0 value, while exploiting NPV <0