A probabilistic approach for the socioeconomic assessment of urban river rehabilitation projects

The case study encompasses two projects, whose global costs total €46 M in 50 years, for the environmental rehabilitation of the stretch of the River Segura that flows through the city of Murcia. The benefits have been obtained by a contingent valuation exercise: €3.3 M/year (€0.6 M/year of use benefits, and €2.7 M/year of non-use benefits). Three different CBA approaches (economic, extended and dual) are applied to contrast these costs and benefits, conducting the analyses of uncertainty and sensitivity of the benefit items through a Monte Carlo simulation. The results highlight the importance of environmental benefits for this kind of projects to be socioeconomically feasible thanks to the profitability indicators they provide.