Estimating Project Benefits

The estimation of benefits is facilitated by distinguishing between different categories of benefits. Conceptually, the benefits of a project can be divided into two parts: primary and secondary. 

Primary benefits accrue from physical effects of the project. which reduce the costs of flood damage, business disruption, emergency response and recovery etc. Moreover primary benefits They can be split up in direct and indirect primary benefits. Direct primary benefits refer to the reduced costs of physical flood damage whereas indirect primary benefits result from reduced costs of the disruption of business, transport networks and public services. The reduced costs of emergency response and recovery also belong to the category of indirect primary benefits.

Secondary benefits refer to additional benefits which might result from the economic linkages of a project. This may include the business and employment opportunities which occur from the project implementation itself as well as the increased investment in the floodplain which may result from a sense of preparedness or security after the project is finished.   

How to estimate direct primary benefits?

How to estimate indirect primary benefits?

How to estimate secondary benefits?

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