Search Climate Insights Directory

The report assesses a proposed Public Bicycle Sharing (PBS) system in Dwarka, New Delhi, using the SAVi methodology to value nine externalities. While a conventional cost-benefit analysis shows the project is financially deficient due to high capital and operational costs relative to user fees, the integrated SAVi analysis reveals significant societal net benefits across three demand scenarios. These benefits include improved public health, reduced air and noise pollution, lower CO2 emissions, and increased retail and property values. The findings suggest that the PBS system is a worthwhile investment from a societal perspective and provides benchmark values for the municipality to invest in supporting bicycle and safety infrastructure.

The SAVi assessment of a proposed Public Bicycle Sharing (PBS) system in Dwarka, New Delhi, demonstrates that while the project may show negative conventional financial results, the integration of social and environmental externalities creates a strong positive business case. Across three demand scenarios, the system is projected to generate significant net benefits, with discounted net benefits over 20 years ranging from INR 3.14 billion to INR 4.82 billion. The largest benefits are derived from time saved, increased retail revenues, and higher property values, which outweigh the primary negative externality of increased cyclist exposure to air pollution.

The SAVi assessment of Dakar's Bus Rapid Transit (BRT) project reveals that while traditional financial analysis suggests the project is not viable, the inclusion of externalities—such as time saved and avoided transportation costs—significantly enhances its financial performance. The project, estimated to cost EUR 369,490,000 and transport 300,000 passengers daily upon completion in 2023, generates total net benefits ranging from CFA 1.7 trillion to 2.7 trillion across different demand scenarios. While the BRT is expected to cause a 14% net job loss within the transportation sector, it is projected to increase overall economy discretionary spending by 15.6% due to improved mobility.

The SAVi analysis demonstrates that while a coal power plant appears more profitable under a Business-as-Usual (BAU) scenario, the offshore wind farm becomes the superior financial option when externalities and climate risks are integrated. Specifically, accounting for externalities reduces the levelized cost of electricity (LCOE) for offshore wind to EUR 65 per MWh compared to EUR 171 per MWh for coal. When physical risks (1.5°C temperature increase) and transitional risks (a carbon tax of EUR 16.27/MWh) are added, the coal plant's internal rate of return (IRR) drops to 0%, while the wind farm maintains an IRR of approximately 17%. The analysis also estimates that the offshore wind project would create 2,780 full-time equivalent jobs.