tourists require a compensation instead. This compensation was estimated at NT
$86.52.
4.5.3 Social Costs and Benefits
In this section we compare the GDP benefits from the investments and the environmental benefits with the capital and investment costs. By including the non-market
value of environmental effects, NPV could be regarded as social net present value,
i.e. SNPV. SNPV follows Eq. (4.1):
SNPV ¼ ÀI þ GDP impact þ
X 20
t¼1
B t À C t
ð
Þ = 1 þ r
ð
Þ
t
ð4:1Þ
where I is the total monetary capital cost. GDP impact stands for the GDP impact of
CAPEX, B t is the annual social benefit of the platform, C t is annual social cost of the
platform which is equivalent to the financial cost here, t is the life span of the
platform, and r is the annual interest rate. The project is accepted if SNPV >0;
otherwise it can be rejected. When the SNPV is used to decide which project
alternative should be chosen, the project with the highest positive SNPV should be
preferred.
Table 4.7 shows the estimation of SNPV at an annual base for the multifunctional
platform with and without considering the non-market value of environmental
effects. As presented in the table, the SNPVs are negative no matter whether the
non-market value of environmental effect is included or not, mainly due to the huge
investment costs (Chen et al. 2015). Sensitivity analysis is carried out with different
discount rate and time span for the project. Table 4.8 and Table 4.9 show the results
from sensitivity analysis with 5% interest rate, and with 70-year time span for the
platform respectively. The SNPV are negative in both sensitivity analyses.
Table 4.7 SNPV for the platform with aquaculture, OTEC and leisure: with and without
non-market value of environmental effects, r ¼ 4% and t ¼ 20 (unit: million $NT)
Green & Blue concept: Aquaculture + OTEC + leisure
Without non-market value of environmental
effects
With non-market value of environmental
effects
SNPV À29294.41
À20892.21
Table 4.8 Sensitivity analysis SNPV with WTP for sustainable development r ¼ 5% and t ¼ 20
(unit: million $NT)
Aquaculture + OTEC + leisure
Without WTP for sustainable development With WTP for sustainable development
SNPV À27276.21
À19571.46
4 Social Acceptance and Socio-economic Effects of Multi-use Offshore. . .
75
$86.52.
4.5.3 Social Costs and Benefits
In this section we compare the GDP benefits from the investments and the environmental benefits with the capital and investment costs. By including the non-market
value of environmental effects, NPV could be regarded as social net present value,
i.e. SNPV. SNPV follows Eq. (4.1):
SNPV ¼ ÀI þ GDP impact þ
X 20
t¼1
B t À C t
ð
Þ = 1 þ r
ð
Þ
t
ð4:1Þ
where I is the total monetary capital cost. GDP impact stands for the GDP impact of
CAPEX, B t is the annual social benefit of the platform, C t is annual social cost of the
platform which is equivalent to the financial cost here, t is the life span of the
platform, and r is the annual interest rate. The project is accepted if SNPV >0;
otherwise it can be rejected. When the SNPV is used to decide which project
alternative should be chosen, the project with the highest positive SNPV should be
preferred.
Table 4.7 shows the estimation of SNPV at an annual base for the multifunctional
platform with and without considering the non-market value of environmental
effects. As presented in the table, the SNPVs are negative no matter whether the
non-market value of environmental effect is included or not, mainly due to the huge
investment costs (Chen et al. 2015). Sensitivity analysis is carried out with different
discount rate and time span for the project. Table 4.8 and Table 4.9 show the results
from sensitivity analysis with 5% interest rate, and with 70-year time span for the
platform respectively. The SNPV are negative in both sensitivity analyses.
Table 4.7 SNPV for the platform with aquaculture, OTEC and leisure: with and without
non-market value of environmental effects, r ¼ 4% and t ¼ 20 (unit: million $NT)
Green & Blue concept: Aquaculture + OTEC + leisure
Without non-market value of environmental
effects
With non-market value of environmental
effects
SNPV À29294.41
À20892.21
Table 4.8 Sensitivity analysis SNPV with WTP for sustainable development r ¼ 5% and t ¼ 20
(unit: million $NT)
Aquaculture + OTEC + leisure
Without WTP for sustainable development With WTP for sustainable development
SNPV À27276.21
À19571.46
4 Social Acceptance and Socio-economic Effects of Multi-use Offshore. . .
75