ESTIMATING THE SHADOW PRICES FOR CHP PLANT PROJECT APPRAISAL IN A RURAL AND LAGGING BEHIND REGION

Autor:	Djula Borozan, Dubravka Pekanov Starčević
Rok vydání:	2016
Předmět:	Estimation Macroeconomics Economics and Econometrics Labour economics Shadow price General Business Management and Accounting Exchange rate Project appraisal Value (economics) Economics Market price Lagging CHP plants cost-benefit analysis shadow exchange rate shadow wages Shadow (psychology)
Zdroj:	Journal of International Business and Economics. 16:139-145
ISSN:	2378-9174 1544-8037
DOI:	10.18374/jibe-16-2.12
Popis:	To estimate all of the potential costs and benefits of a project and then to facilitate a selection of the best alternative, cost-benefit analysis may be used. However, there are some major issues related thereto, one of the most important ones being an estimation of shadow prices. Namely, if there are market distortions, the observed market prices do not reflect the true cost to society, and consequently shadow prices should be estimated. The main purpose of this paper is to estimate shadow prices and their corresponding conversion factors to be used for the combined cycle heat and power (CHP) plant project appraisal for the period 2010-2013. Thereby, the focus is placed on calculation of shadow prices of the labour and foreign exchange rate in Osijek-Baranja County, a rural and lagging behind region in which this CHP plant will be constructed. The results indicate a higher value of the shadow exchange rate and a lower value of shadow wages compared to the official (market) ones, which are both overvaluated.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::13ab805f9de89ffbe935fc7051fcfa9d https://doi.org/10.18374/jibe-16-2.12 Zobrazit plný text záznamu