Economics and Rural Development, Volume 10, Number 2

Valuation of Public Projects for Regional Development: Critical Approach

Jurgita Baranauskiene, Vilija Alekneviciene
Aleksandras Stulginskis University

Abstract

Public projects for regional development are prepared and implemented in order to create social benefits for society of a particular region – to improve living and working conditions and/or to protect the environment. Every investment option should be evaluated and substantiated before the right investment decision is made. The valuation of public projects is complicated due to complexity of valuation of social benefits for the regional society. Expected impact of public project should effectively satisfy society needs. The methods for public projects’ evaluation should be chosen in critical approach. The aim of this methodological research is highlight the main problems of methods used for evaluation of public projects for regional development. This article provides main characteristic of public projects for regional development, reviews the methods used for evaluation of public projects for regional development, presents problematic questions of public projects’ evaluation raised in scientific literature, provides a summary of the main problems of evaluation methods used for regional development public projects.

Keyword(s): public project, social benefits, social discount rate, regional development


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DOI: http://dx.doi.org/10.15544/erd.2014.008

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Economics and Rural Development ISSN 1822-3346 / eISSN 2345-0347

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editors: Prof. Dr Vilija Alekneviciene, Dr Gunita Mazure.