Lecturer
Dr Nhan Phan
Course overview
- Study period
- Semester 2, 2024 (22/07/2024 - 18/11/2024)
- Study level
- Undergraduate
- Location
- St Lucia
- Attendance mode
- In Person
- Units
- 2
- Administrative campus
- St Lucia
- Coordinating unit
- Economics School
Cost-benefit analysis is essential in economics and public policy. This course develops the skills to systematically assess and evaluate costs and benefits of an intervention, project, or policy to ensure efficient allocation of scarce resources. Going beyond financial appraisals, this course utilises basic microeconomic theory to predict and monetise social and economic impacts caused by market failures. The course also covers ethical and social consequences of decision-making within a cost-benefit analysis framework.
Cost benefit analysis (CBA) underpins all implicit and explicit decision making. By undertaking this course students will develop the necessary skills and tools to evaluate the costs and benefits of decisions, projects or policies. More specifically, students will be able to: (1) determine if a project is justifiable by comparing the costs and the benefits, and (2) compare projects/policies to ensure optimal allocation of resources.
Throughout the duration of the course students will apply economic theories and concepts learnt from their prior studies in intermediate microeconomics to a CBA framework. It is assumed that students understand demand and supply, elasticities, market failures and public goods - all covered in the listed prerequisite course.
ECON2101 will cover specific considerations and applications of microeconomics such as the treatment of risk and uncertainty, externalities, and valuing non-market benefits and costs within a cost benefit analysis framework.
ECON2101 will also discuss the intersection of politics, ethics, and methods of cost benefit analysis in the context of environmental, medical, health and public policy evaluations.
The assessment design focuses onﾠstudentsﾠusing and applying knowledge and skills in real-life settings to develop their CBA technical skills. Students will be introduced to the use of spreadsheets (Excel) in undertaking a cost-benefit analysis of a project atﾠthe end of semester assessment.
Course requirements
Assumed background
Proficiency in basic Excel spreadsheeting is highly recommended. Students are encouraged to review the Excel training resources provided by the library services found at: Software and training resources - Library - University of Queensland (uq.edu.au).
Microsoft Excel is required for this course. Students can access a free version of Office 365 here:ﾠOffice 365 for personal use - my.UQ - University of Queensland
Students are also expected to be familiar with various writing styles including report writing. Please refer to the following information provided by the library servicesﾠshould you have difficulties identifying the appropriate format:ﾠAssignment types - my.UQ - University of Queensland
Before enrolling in this course, you are advised that it is important to complete the prerequisite course(s) listed in this course profile. No responsibility will be accepted by UQ School of Economics, the Faculty of Business, Economics and Law or The University of Queensland for poor student performance occurring in courses where the appropriate prerequisite(s) has/have not been completed, for any reason whatsoever.
Prerequisites
You'll need to complete the following courses before enrolling in this one:
ECON1010 or 1011 or 2011
Recommended companion or co-requisite courses
We recommend completing the following courses at the same time:
ECON2010 or ECON2410
Incompatible
You can't enrol in this course if you've already completed the following:
ECON3220, ECON7740
Course contact
School enquiries
Student Enquiries, School of Economics
All enquiries regarding student and academic administration (i.e. non-course content information, e.g., class allocation, timetables, extension to assessment due date, etc.) should be directed to enquiries@economics.uq.edu.au.
Enquiries relating specifically to course content should be directed to ECON2101@uq.edu.au.
Course staff
Course coordinator
Professor Rodney Strachan
Tutor
Mr Zane Haster
Mr Md Khairul Hidayatullah Hj Basir
Mr Joshua Grice
Timetable
The timetable for this course is available on the UQ Public Timetable.
Additional timetable information
Lectures will be delivered in person for Semester 2, 2024. Lectures will still be recorded. However, tutorials are not recorded for this course.
Students should refer to the timetable prior to the commencement of classes to ensure that they have the most up to date information.
Tutorial Preferencing:
Students are required to submit assessment either prior or during their allocated tutorial. All students must enrol in a tutorial to receive these marks.
Please refer to My Timetable (available via your my.UQ dashboard) for more information on the tutorial preferencing and allocation process. Tutorials commence in Teaching Week 2.
The timetable is published through the UQ Public Timetable found in the APPs section of myUQ.ﾠStudents should refer to the timetable prior to the commencement of classes to ensure that they have the most up to date information, as from time to time late room changes may occur.
Public Holidays:ﾠWedﾠ14 Augustﾠ- Royal Queensland Show (EKKA),ﾠMon 7ﾠOctoberﾠ- King's Birthday.
Mid-Semester Break:ﾠ23ﾠSeptemberﾠ- 27 September. Semester 2 classes recommence Monday 30 September.ﾠ
Aims and outcomes
This course is intended to equip students with the conceptual, analytical and critical thinking skills needed to undertake cost-benefit analysis for the evaluation projects/policies in real-world situations.
Learning outcomes
After successfully completing this course you should be able to:
LO1.
Construct and interpret a cost benefit analysis in a variety of real world situations.
LO2.
Apply non-market valuation methods to correct market failures, including those of a social and/or intangible nature.
LO3.
Evaluate risk and uncertainty in decision-making within a cost benefit analysis framework.
LO4.
Critically evaluate the ethical and social consequences of decision-making using cost benefit analysis.
Assessment
Assessment summary
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Tutorial/ Problem Set | Online Tutorial Exercises | 10% (Best 8 of 10) |
submitted during allocated tutorial time |
| Quiz | Online Quizzes | 30% (3 x 10%) |
16/08/2024 1:00 pm 13/09/2024 1:00 pm 18/10/2024 1:00 pm |
| Tutorial/ Problem Set | Short Assignment | 20% |
4/10/2024 1:00 pm
submitted online, 1pm Week 10 |
| Project | Group Case Study | 40% |
4/11/2024 1:00 pm
submitted online, 1pm |
Assessment details
Online Tutorial Exercises
- Mode
- Activity/ Performance
- Category
- Tutorial/ Problem Set
- Weight
- 10% (Best 8 of 10)
- Due date
submitted during allocated tutorial time
- Learning outcomes
- L01, L03, L04
Task description
Students will be required to submit solutions to computer-based exercises, case studies and short-answer questions as specified in Blackboard. Weekly tutorial sessions begin in week 2. Submission dates for tutorial exercises are indicated on the Blackboard website.
There will be 10 weekly tutorial session submissions for which you are expected to prepare and submit a set of fairly straight-forward Excel-based exercises in advance of each week's session. In each session a tutor will work through that week's exercise 'live' and, if time permits, cover a few other topics of relevance.
Students will receive up to 10% of the final mark through 'active participation' in these tutorial sessions. 'Active participation' requires students to submit their Excel exercises or word document via the link on the course website. Blank submissions do not receive marks.
This assessment task evaluates students' abilities, skills and knowledge without the aid of generative Artificial Intelligence (AI). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
Students can submit their attempt at the tutorial exercises prior or during to their enrolled tutorial.
Note: the submission is not marked based on correct content. Students who submit prior to their tutorial should check the solutions when the solutions are released on Blackboard
Deferral or extension
You cannot defer or apply for an extension for this assessment.
Note that only the best 8 of the 10 tutorial submissions will count towards your overall results. As the tutorial exercises form a series of continuous assessment, students are encouraged to submit all possible attempts throughout the semester.
Late submission
You will receive a mark of 0 if this assessment is submitted late.
No late submissions or extensions will be accepted. Submissions via email will not be accepted.
Late submissions after the deadline for each online tutorial submissions will not be accepted. A penalty of 100% for non-submission will be applied.
Online Quizzes
- Mode
- Written
- Category
- Quiz
- Weight
- 30% (3 x 10%)
- Due date
16/08/2024 1:00 pm
13/09/2024 1:00 pm
18/10/2024 1:00 pm
- Learning outcomes
- L01, L02, L03
Task description
Students are required to complete three (3) online quizzes covering both numerical and theoretical applications of CBA at regular intervals throughout the course. There will be three quizzes worth 10% each (total of 30% for the course).
· Each quiz can contain multiple choice, short answer or numerical questions.
· Students will have 120 minutes to complete each online quiz.
· The quizzes will be held on weeks 4, 8, and 12.
Access to Excel is required for the online quizzes. If you are not using a university computer, please ensure you add the UQ blackboard website and downloads to your "Trust Centre". Otherwise, you may have difficulties opening or downloading files.
Access to each quiz on Blackboard will be blocked once the timer expires or as the quiz closes.
This assessment task evaluates students' abilities, skills and knowledge without the aid of generative Artificial Intelligence (AI). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
To be submitted via Blackboard. See Blackboard for submission details.
Deferral or extension
You may be able to apply for an extension.
The online quizzes have a maximum extension of 3 days (including weekend days) to ensure timely feedback to other students. Extension applications must be received before the deadline, and you are required to email the course coordinator directly so they are aware of your application and can make arrangements for your extension within this timeframe. To apply for an extension, students must provide evidence (e.g., a medical certificate) that the late submission is beyond their control. The course coordinator will decide on the evidence presented whether a late submission will be accepted and whether penalty will be applied.
Late submission
You will receive a mark of 0 if this assessment is submitted late.
A penalty of 100% will be applied for non-submission unless an extension has been granted.
Short Assignment
- Mode
- Written
- Category
- Tutorial/ Problem Set
- Weight
- 20%
- Due date
4/10/2024 1:00 pm
submitted online, 1pm Week 10
- Learning outcomes
- L01, L02, L04
Task description
One short assignment worth a total of 20%. Students are required to answer several short questions, both computational and answers to short questions, based on the previous weeks' lectures. Marks per question will be indicated.
The assignment must be submitted electronically through the relevant Assessment section of the Course Blackboard site. All working must be provided in Excel and submitted via the Online Submission link. Students must submit their "Test" with their short responses and their Excel Spreadsheet with the fully worked answers and responses to text-based questions.
The assignment will be due in week 10.
This assessment task evaluates students' abilities, skills and knowledge without the aid of generative Artificial Intelligence (AI). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
Deferral or extension
You may be able to apply for an extension.
The maximum extension allowed is 14 days. Extensions are given in multiples of 24 hours.
Extensions are limited to 14 calendar days to ensure timely feedback to other students.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Group Case Study
- Mode
- Written
- Category
- Project
- Weight
- 40%
- Due date
4/11/2024 1:00 pm
submitted online, 1pm
- Learning outcomes
- L03, L04
Task description
Students are required to complete a take-home group case study assignment. Students will have two weeks to complete the assignment. The assignment will be released no later than 21st October.
The assignment will consist of a group task worth 30% (spreadsheet and report) and an individual reflection worth 10% for a total of 40% of your final grade. The case study can be done individually or as a group. Please note that this task is a significant amount of work for an individual, so groups are encouraged. Expected number of hours for this assessment is 20-25 hours of work. Students are expected to form their own groups using the sign-up sheet on Blackboard. If you do not sign up via the tool you are not in a group and must complete the assignment individually. A deadline for the creation of groups will be posted on Blackboard. No changes to groups can be made after this deadline.
The assignment must be submitted electronically through the Online Submission link in the Assessment section of the Course Blackboard site. Students are responsible for ensuring one student from the group submits the report and spreadsheet. Reflections must be submitted individually.
Further details to be announced in Blackboard.
Artificial Intelligence (AI) and Machine Translation (MT) provides emerging tools that may support students in completing this assessment task. Students may appropriately use AI and/or MT in completing this assessment task.. Students must clearly reference any use of AI or MT in each instance.
A failure to reference generative AI or MT use may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
Group Case Study Submission
- The group case study must be submitted electronically through the submission folder in the Assessment section of the course Blackboard site.
- For the groupwork section, only one submission is required. Please nominate ONE student to submit the assignment from your group. Ensure the details of all contributing students is at the top of the coversheet.
- For the individual reflection, each student must submit their own reflection.
- Students should keep a list of their team members' full names and contact details.
Deferral or extension
You may be able to apply for an extension.
The maximum extension allowed is 14 days. Extensions are given in multiples of 24 hours.
Extensions for students completing the case study as a group will impact the group submission. You must email the course co-ordinator in advance of the deadline should you apply for an extension on the case study. Students who apply for an extension must communicate with their group regarding their application. Students who apply for an extension may be asked to complete the assessment individually. Students who complete the case study individually follow the normal process. Limitations to the duration of the extension apply to ensure all grades can be finalised. While we indicate there is a maximum 14 days extension please be aware that if you (or your team member) are to graduate on time, your extension may be for a shorter duration to ensure your grade is processed.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Course grading
Full criteria for each grade is available in the Assessment Procedure.
| Grade | Cut off Percent | Description |
|---|---|---|
| 1 (Low Fail) | 0% - 29% |
Absence of evidence of achievement of course learning outcomes. |
| 2 (Fail) | 30% - 46% |
Minimal evidence of achievement of course learning outcomes. |
| 3 (Marginal Fail) | 47% - 49% |
Demonstrated evidence of developing achievement of course learning outcomes |
| 4 (Pass) | 50% - 64% |
Demonstrated evidence of functional achievement of course learning outcomes. |
| 5 (Credit) | 65% - 74% |
Demonstrated evidence of proficient achievement of course learning outcomes. |
| 6 (Distinction) | 75% - 84% |
Demonstrated evidence of advanced achievement of course learning outcomes. |
| 7 (High Distinction) | 85% - 100% |
Demonstrated evidence of exceptional achievement of course learning outcomes. |
Additional course grading information
A student's final overall end of semester percentage mark will be rounded to determine their final grade. For example, 64.5% rounds to 65%, while 64.4% rounds to 64%.
Supplementary assessment
Supplementary assessment is available for this course.
Additional assessment information
Plagiarism
The School of Economics is committed to reducing the incidence of plagiarism.ﾠFurther information on plagiarism and how to avoid an allegation of plagiarism is available in this course profile under Policies & Guidelines. Please refer to theﾠAcademic Integrity Module (AIM). It is strongly recommended that youﾠcomplete the AIMﾠif you have not already done so.
Referencing and Citing
APA is the required referencing style in this course.
Assignments must be substantially your own work. If you wish to report another author’s point of view you should do so in your own words, and properly cite the reference in accordance with the school style. Direct quotations should be used sparingly, form a small part of your work, and must be placed in quotation marks and duly referenced.
Any material taken from texts and other references, including electronic resources, CD‐ROMS, and the Internet, must be acknowledged using the accepted School style.
Students are encouraged to discuss issues that arise in this course together. However, the written work you submit must be entirely your own. Similarly, you must not help another student to cheat by lending assignments (present or past).
For more information on referencing styles, visit the library.
If you do not reference the materials used in your assignment correctly, you could be found guilty of academic misconduct.
Learning resources
You'll need the following resources to successfully complete the course. We've indicated below if you need a personal copy of the reading materials or your own item.
Library resources
Find the required and recommended resources for this course on the UQ Library website.
Own copy required
You'll need to have your own copy of the following reading resources. We've indicated below if you need a personal copy of the reading materials or your own item.
| Item | Description |
|---|---|
| Book |
Social cost benefit analysis and economic evaluation
by Bonner; Suzanne - 2022 Publisher: University of Queensland ISBN: 9781742723709 |
Additional learning resources information
This course leverages off the free open access textbook found here: Social Cost Benefit Analysis and Economic Evaluation (pressbooks.pub)
Learning activities
The learning activities for this course are outlined below. Learn more about the learning outcomes that apply to this course.
Filter activity type by
Please select
| Learning period | Activity type | Topic |
|---|---|---|
Week 1 (22 Jul - 28 Jul) |
Lecture |
Introduction to Social Cost Benefit Analysis Learning outcomes: L01 |
Multiple weeks From Week 2 To Week 13 |
Tutorial |
Tutorial Tutorials will run from week 2 - 13. During the tutorial students will utilise spreadsheets to conduct CBA, complete worked examples from the relevant textbooks and prepared case study exercises Learning outcomes: L01, L02, L03, L04 |
Week 2 (29 Jul - 04 Aug) |
Lecture |
Discounting and Decision Rules The basics of discounting - time preferences, calculating NPV, IRR and BCR, dealing with multiple time periods Learning outcomes: L02 |
Week 3 (05 Aug - 11 Aug) |
Lecture |
Discounting and Decision Rules (cont) Challenges of comparing NPV, IRR and BCRs including mid-year and beginning of year discounting, comparing projects different lives, other complications in CBA Learning outcomes: L01, L02 |
Week 4 (12 Aug - 18 Aug) |
Lecture |
Standing and Perspective in CBA Identifying whose benefits and costs matter, applying Market perspective and Investor perspective to CBA Learning outcomes: L01, L02 |
No student involvement (Breaks, information) |
14 Aug Ekka - Public Holiday (no tutorial) There will be no tutorial on Wednesday. Students in the Wednesday should attend any other tutorial. |
|
Week 5 (19 Aug - 25 Aug) |
Lecture |
Predicting and Monetising Social Impacts 1 Kaldor-Hicks criterion, using markets to evaluate direct impacts of policies, evaluating impacts using consumer and producer surplus. Learning outcomes: L01, L02, L03 |
Week 6 (26 Aug - 01 Sep) |
Lecture |
Predicting and Monetising Social Impacts 1 (cont) predicting and monetising, benefit value transfers, when to use shadow prices, types of errors Learning outcomes: L01, L02, L03 |
Week 7 (02 Sep - 08 Sep) |
Lecture |
Social Perspective in CBA Shadow prices from distorted markets, implementing social CBA, evaluation of aggregate social CBA for decision making Learning outcomes: L01, L02, L03 |
Week 8 (09 Sep - 15 Sep) |
Lecture |
Disaggregated Social Cost Benefit Analysis Evaluation of standing, Identification of distributional costs and benefits Learning outcomes: L01, L02, L03 |
Week 9 (16 Sep - 22 Sep) |
Lecture |
Ethical and Social Issues in CBA when policy and philosophy collide. Learning outcomes: L03, L04 |
Mid Sem break (23 Sep - 29 Sep) |
No student involvement (Breaks, information) |
Mid Semester Break Mid Semester Break from 23 September - 29th September. Classes resume on the 30th October |
Week 10 (30 Sep - 06 Oct) |
Lecture |
Dealing with Uncertainty and Sensitivity Analysis how big is a piece of string?, uncertainty and risk, expected value analysis, expected NPV, risk preferences, sensitivity analysis Learning outcomes: L03, L04 |
Week 11 (07 Oct - 13 Oct) |
Lecture |
Predicting and Monetising Social Impacts 2 Total economic value, non-market goods and services in CBA, non-market valuation methods and environmental impacts Learning outcomes: L01, L02, L03, L04 |
Week 12 (14 Oct - 20 Oct) |
Lecture |
Predicting and Monetising Social Impacts 2 (cont) Further case study applications/ Environmental effects and non-market valuation. Learning outcomes: L01, L02, L03, L04 |
Week 13 (21 Oct - 27 Oct) |
Lecture |
Guidelines to Preparing a CBA report Review key concepts and Q&A on case study Learning outcomes: L03, L04 |
Policies and procedures
University policies and procedures apply to all aspects of student life. As a UQ student, you must comply with University-wide and program-specific requirements, including the:
- Student Code of Conduct Policy
- Student Integrity and Misconduct Policy and Procedure
- Assessment Procedure
- Examinations Procedure
- Reasonable Adjustments - Students Policy and Procedure
Learn more about UQ policies on my.UQ and the Policy and Procedure Library.