Remediation costs, benefits
How much will it cost to do nothing or fix it, is it worth
it?
Cost-benefit analysis
The evaluation of channel seepage remediation options must include
consideration of the costs involved in installing and maintaining
works, and the benefits that are likely to be realised. The relationship
will depend on soil characteristics, channel geometry, prevailing
land use, and groundwater conditions at the evaluation site.
The Channel Seepage Decision Support Tool uses discounted cash flow
techniques to analyse the costs and benefits of employing a specific
technique
at an identified site. The economic implications involve cash flows
relating to the water business, adjacent landholders and the wider
community. The analysis should be performed on alternative techniques
for comparison purposes.
The cost-benefit analysis is limited to forecasts of cash flows that
are able to be monetised. The benefits of reduced impact upon the
environment cannot be incorporated without available economic data
that would support existence values. Multi-criteria analysis is suggested
where existence value information is not available. Basic reports
summarising cost estimates for a given channel geometry are provided.
The default information provided by cost-benefit analysis should
be reviewed by personnel with relevant experience prior to evaluation
of sites. In particular, the ‘base model input’ should
be reviewed before conducting site evaluation. This improves entry
of
site information
and evaluation
of remediation priorities.
The objective of economic evaluation is selection of sites and techniques
that maximises the overall net present value within the capital budget
available.
Download the Channel Seepage Decision Support Tool:
Cost_Calculator_V08_June2004.xls