Saturday, January 26, 2008

Unit 2: Cost Benefit Analysis and the Isle of Lewis wind farm project

Plans to build one of Europe's biggest wind farms on the Isle of Lewis are set to be turned down, BBC Scotland reports

http://news.bbc.co.uk/1/hi/scotland/highlands_and_islands/7208991.stm

a) What is the purpose of a CBA?
b) Using the article and your general knowledge, outline 2 private costs, private benefits, external costs and external benefits asociated with the project
c) If the project is to be rejected by the Scottish government, to what extent do you believe the decision to be based on economic factors?

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