Economic Analysis

In general, businesses assess investment opportunities based on a financial analysis. A financial analysis takes into account only the costs and revenues of a project accruing to its proponent (also called ‘internal’ costs and benefits). While a financial analysis is essential to establish the commercial viability of a project, it fails to take into account the non-market (also called ‘external’) effects of the project (e.g. pollution, accidents).

To assist clients in making fully-informed decisions, we provide:

  • Economic cost-benefit analysis (CBA), estimating economic internal rate of return (EIRR) and economic net present value (ENPV) of projects, taking into account key externalities;
  • Economic impact assessment (EIA), which measures the expected impact of a project on the economy such as job creation,  increased income, etc.

CPCS has developed integrated sets of models and applies established methodologies to assist clients in understanding the project’s impacts on the society and to advise on economically efficient investment alternatives.