Abstract
As discussed, life-cycle cost approach (LCCA) has evolved from a project appraisal tool to a more comprehensive method of incorporating sustainable development aspects in various sectors. LCCA could be conceived in the broader sustainable development framework. The framework consists of three interconnected sustainability dimensions, such as economic, environmental and social. Economic sustainability concept draws from the public finance framework using financial and economic assessment of investments.
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Notes
- 1.
We restricted to the methods appropriate for this section. We have not dealt with financial or economic appraisal methods such as Cost–Benefit Analysis (CBA), Cost-effectiveness Analysis (CEA), Multi-Criteria Analysis (MCA), Risk—Benefit Analysis (RBA), Decision Analysis (DA), etc.
- 2.
These are also known as surrogate market valuation approaches, when information about a marketed good is used to infer the value of a related non-market good.
- 3.
Conditional logit is used to deal with the data structure, which includes both groups of independent variables—source attributes vary across sources while household characteristics do not vary across sources.
- 4.
This is calculated in terms of the price times the quantity of water/fuel wood consumed per day. In other words, the values of water/fuel wood if purchased at market price (even if the household is not actually purchasing them in the market).
- 5.
Various other problems related to Travel Cost Method are not considered here.
- 6.
The concept of willingness to accept is less preferred as it is observed not to reflect the true picture—often found to be giving over estimates when compared to willingness to pay estimates.
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Reddy, V.R., Kurian, M., Ardakanian, R. (2015). Life-cycle Cost Approach (LCCA): Framework and Concepts. In: Life-cycle Cost Approach for Management of Environmental Resources. SpringerBriefs in Environmental Science. Springer, Cham. https://doi.org/10.1007/978-3-319-06287-7_2
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