Evaluating Investments in Environmental Protection and Women's Health Care in the Sahel

Abstract

The analysis shows how a development cooperation project - when viewed solely  under the aspect of its direct effects, and when market prices are applied - may  appear uneconomical; but when the effect on the environment is taken into account  such a project may be evaluated much more positively (ENGELHARDT, WAIBEL,  I993). It is clear that in the case at hand the use of market prices (for wood) leads to a  particular skewing of the results. Because of the great problems intrinsic to a correction of market prices and the evaluation of external effects such as the one attempted here, these measures were  undertaken with great care. In addition, only simple correction were selected so that the results would be comprehensible to decision-makers. The monetary value of the estimated positive external effects of the project may thus still actually exceed the results given.  Furthermore, clearly greater technical efficiency would lead to a substantial increase in the prfitability of the investment.