M N, Murty and Dhavala, Kishore Kumar and Ghosh, Meenakshi and Singh, Rashmi (2006): Social Cost-Benefit Analysis of Delhi Metro.
This is the latest version of this item.
Download (774kB) | Preview
The growing demand for public transport in mega cities has serious effects on urban ecosystems, especially due to the increased atmospheric pollution and changes in land use patterns. An ecologically sustainable urban transport system could be obtained by an appropriate mix of alternative modes of transport resulting in the use of environmentally friendly fuels and land use patterns. The introduction of CNG in certain vehicles and switching of some portion of the transport demand to the metro rail have resulted in a significant reduction of atmospheric pollution in Delhi. The Delhi Metro provides multiple benefits: reduction in air pollution, time saving to passengers, reduction in accidents, reduction in traffic congestion and fuel savings. There are incremental benefits and costs to a number of economic agents: government, private transporters, passengers, general public and unskilled labour. The social cost-benefit analysis of Delhi Metro done in this paper tries to measure all these benefits and costs from Phase I and Phase II projects covering a total distance of 108 kms in Delhi. Estimates of the social benefits and costs of the project are obtained using the recently estimated shadow prices of investment, foreign exchange and unskilled labour as well as the social time preference rate for the Indian economy for a study commissioned by the Planning Commission, Government of India and done at the Institute of Economic Growth. The financial internal rate of return on investments in the Metro is estimated as 17 percent while the economic rate of return is 24 percent. Accounting for benefits from the reduction of urban air pollution due to the Metro has increased the economic rate of return by 1.4 percent.
|Item Type:||MPRA Paper|
|Institution:||Institute of Economic Growth, Delhi|
|Original Title:||Social Cost-Benefit Analysis of Delhi Metro|
|Keywords:||Transport; Air Pollution; Cost- benefit analysis and Shadow prices|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q51 - Valuation of Environmental Effects
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q58 - Government Policy
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
|Depositing User:||Kishore Dhavala|
|Date Deposited:||04. Apr 2009 18:11|
|Last Modified:||12. Feb 2013 07:42|
Ahmad, E. and N.H Stern (1984), “ The Theory of Reform and Indian Indirect Taxes”, Journal of Public Economics, Vol. 25, pp. 259-98. Chatterjee, S., Kishore K. Dhavala and M. N. Murty (2006), “ Estimating Cost of Air Pollution Abatement for Road Transport in India: Case Studies of Andhra Pradesh and Himachal Pradesh”, IEG Discussion Paper No. 94/2005, Institute of Economic Growth, forthcoming in Economic and Political Weekly. Dasgupta, P.S., S.A. Marglin and A.K. Sen (1972), Guide Lines for Project Evaluation, United Nations, New York. Government of India, Planning Commission (2005), Economic Survey. Murty, M. N. and R. Ray (1989), “A Computational Procedure for Calculating Optimal Commodity Taxes with Illustrative Evidence from Indian Budget Data”, Scandinavian Journal of Economics, Vol. 91(4), pp. 665-70. Murty, M. N. and B. N. Goldar (2006), Economic Evaluation of Investment Projects, Report of Project Sponsored by Planning Commission, Government of India. Murty, M.N. and S.C. Gulati (2005), “Method of Hedonic Prices: Measuring Benefits from Reduced Air Pollution”, IEG Working Paper Series, Vol. E/254/2005, Institute of Economic Growth, New Delhi. Murty, M.N., Surender Kumar and Kishore K. Dhavala (2006), “Measuring Environmental Efficiency of Industry: A Case Study of Thermal Power Generation in India” IEG Working Paper Series, Vol. E/270/06, Institute of Economic Growth, New Delhi. RITES (1995a), Integrated Multi-Modal Mass Rapid Transport System for Delhi, Economic Analysis for Modified First Phase. - (1995b), Integrated Multi-Modal Mass Rapid Transport System for Delhi, Financial Analysis for Modified First Phase. - (2005a), Delhi Metro Rail Corporation, Environmental Impact Assessment for Phase II Corridors of Delhi Metro. - (2005b), Detailed Project Report for Phase-II Corridors of Delhi Metro.
Available Versions of this Item
Social Cost-Benefit Analysis of Delhi Metro. (deposited 07. Feb 2007)
- Social Cost-Benefit Analysis of Delhi Metro. (deposited 04. Apr 2009 18:11) [Currently Displayed]