Socio-economic survey and social cost benefit analysis

Socio-economic survey

A socio-economic survey collects data on the people and economy of the project area: population, households, income, occupation, education, health, land holding, infrastructure, gender and caste composition, and attitude to the project.

• Methods: questionnaire, interviews, focus groups, field observation, existing records.
• Uses: finds beneficiaries and affected people, estimates demand and benefits, plans resettlement and compensation, supports social cost benefit analysis and environmental assessment.

Ordinary (financial) cost benefit analysis

Considers only costs and returns to the owner at market prices, including loan interest and taxes. It asks whether the project is profitable for the investor.

Social cost benefit analysis (SCBA)

Considers all costs and benefits to society, using shadow (economic) prices, excluding transfer payments such as taxes and subsidies and including externalities (pollution, time saved, employment). It asks whether the project is good for the nation.

Decision rule: accept if $B/C > 1$ and $NPV > 0$.