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Abstract

A methodology of project appraisal combining the criteria of economic feasibility, acceptability, and sustainability is developed and applied to Plan Sierra, a watershed development project in the Dominican Republic. Feasibility is measured by the change in sustainable income due to the project; acceptability by the change in average annual income for the present generation; and sustainability by the difference between changes in sustainable and average annual incomes. These three criteria may be achieved by schemes of tax and subsidy between project and non-project households and between present and future generations.

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