Question: How to Analyse the case in details based on the major steps of CBA. acknowledge the unavailability of data. Is this case a distributional CBA?

How to Analyse the case in details based on the major steps of CBA. acknowledge the unavailability of data. Is this case a distributional CBA? Why is there no consumer surplus included as a benefit? What are the weaknesses of the CBA?

How to Analyse the case in details based on the major steps

Case Table 9.1 CBA of North-East Mine Development Project (2016 $ Millions) Net social 90% base 90% base price Sector Benefits Costs benefits price and quantity Mining sector 9,677 9,513 163 426 -700 Transport sector Trucking 96 96 0 0 0 Canadian National Railway 1,471 1,045 426 426 353 BC Rail 630 589 41 41 18 Port terminal 394 438 -44 -44 -67 Analysis and survey 32 32 0 0 0 British Columbia Royalties and taxes 674 0 674 566 493 Producer surplus (labor) 73 0 73 73 73 Environment 29 15 15 15 15 Infrastructure* 0 257 257 257 -257 Rail branch line 266 779 -514 -514 540 Canada Corporate taxes 385 0 385 312 268 Highways, port navigation 0 76 -76 -76 -76 Producer surplus (labor) 73 0 73 73 73 Totals 13,800 12,840 959 189 -347 * Highways, electric power, townsite. Source: Based on W. G. Waters II, "A Reanalysis of the North East Coal Development" (undated), tables 2 and 3. All figures are present values in millions of 2016 Canadian dollars, assuming a real discount rate of 10 percent with the discounting period ending in 2003 and no terminal value

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