This study aims to recommend more reasonable institutional measures to reflect environmental value when making benefit-cost analysis(BCA) on development projects, based on current institution.
To conduct research, environmental conflicts caused by...
This study aims to recommend more reasonable institutional measures to reflect environmental value when making benefit-cost analysis(BCA) on development projects, based on current institution.
To conduct research, environmental conflicts caused by controversial development projects were examined through literatures. Theoretical background and case studies in Korea for the evaluation of environmental value were considered to gauge necessity and possibilities of the institutionalization. The study suggests the following measures to institutionalize BCA incorporating the environment value by looking at various current practices and problems which lay the legal foundation and decide the implementation of development project from the perspective of environmental valuation.
First, guidance should be put in place within possible level to realize environmental valuation and to minimize controversy over the process. The guide should include principles and categorizing system of valuation, required level of information, adoptability of valuation methods, and other factors to be attended to. In addition, it is suggested that specific government agencies take the responsibility of enacting and operating the guide in order to promote development and standardization of the recommended methods.
With a view to institutionalizing BCA incorporating the environmental value, the examination was conducted taking the function of current institution and roles of competent authorities into consideration based on the four related ministries in Korea. Consequently, it is proposed that the Feasibility Study carried out by individual authorities be improved to implement BCA considering the environmental value, and the consultation process of Prior Environmental Performance Review System conducted with the Ministry of Environment include the examination of the propriety of environmental value part.
To prevent any chance that Feasibility Study results are distorted by the authority in charge of development projects, the Ministry of Planning & Budget is suggested to introduce 'feasibility verification process'. After the strict verification, decisions about whether or not working expenses should be reflected, or the project should be conducted, will be made. It is proposed that the existing Preliminary Feasibility Study be streamlined to the extent of deciding if the cost of Feasibility Study need to be included rather than if the project needs to be implemented.