Annals of the University of Oradea: Economic Science (Jul 2016)
ANALYSIS OF COSTS AND BENEFITS OF INVESTMENTS IN WASTE MANAGEMENT SYSTEMS IN BULGARIA
Abstract
This paper represents a study employing Cost-Benefit Analisys for efficiency appraisal of a set of 19 projects for Regional Waste Management Systems (RWMS) construction, envisaged for funding under Priority axis 2: Improvement and development of waste treatment infrastructure within Operational Programme Environment 2007-2013 in Bulgaria. The member states are required to submit a Cost-Benefit Analysis to the Commission services for major projects to provide evidence that, in the framework of EU regional policy objectives, the project is both desirable from an economic point of view and needs the contribution of the Funds in order to be financially feasible. To draw the conclusion on potential impact on social welfare of the public investments undertaken in waste management ecological infrastructure costs and benefits are first identified and monetized. The aggregated model for assessing the impact of investments is based on information declared in those specific project proposals, and the data has then been processed to extract averages and aggregates needed for the purposes of analysis. Financial Analysis is employed to assess the need of co-financing by the European fund for regional development and to estimate the amount of the EU assistance. Economic Analysis is employed to determine whether the society would be better-off with the projects. According to the economic evaluation undertaken the projects’ net present value is positive thus proving that investments in ecological infrastructure in Bulgaria generate net benefits for society as a whole.
