I 



2.12.8 Evaluation procedure: Problems in 

 application. 



(a) Application of the procedures in this section 

 requires care to ensure that ail costs are included. 

 The Identification and determination of all associat- 

 ed costs and external diseconomies require full per- 

 ception of the measures required to achieve the 

 benefits being claimed and the impacts produced 

 by the actions taken. It must be emphasized that it 

 is not practical or economic to trace out all other 

 direct effects. 



(b) Application of the procedures in this section 

 requires care to avoid double counting. A full under- 

 standing of the values reflected by market and sur- 

 rogate values is necessary to prevent double count- 

 ing. For example, the market value of land that in- 

 cludes a private recreation development reflects 

 the recreation value. In this case, double counting 

 would result if a surrogate recreation value (loss) 

 were added as a cost. On the other hand, the 

 market value of land that provides free public recre- 

 ation does not reflect the recreation value, so the 

 surrogate recreation value (loss) must be added as 

 a cost. 



(c) Market prices are relatively easy to obtain. 

 However, some prices are subject to large fluctu- 

 ations in short periods of time, so care must be 

 taken to determine reasonable current costs of 

 such items for project evaluation purposes. 



2.12.9 Evaluation procedure: Data sources. 



Market price information is available from data on 

 comparable sales. Government publications (e.g., 

 bulletins of the U.S. Departments of Commerce, 

 Agriculture, and Labor), and business reports. Data 

 sources for those NED benefit evaluation proce- 

 dures having application to cost analysis are cov- 

 ered in their respective sections of this chapter. 



2.12.10 Report and display procedures. 



Display NED costs identified through the proce- 

 dures described above as line item entries in the 

 adverse effects section of the NED account. The 

 following display tables are suggested: 



Table 2.12.9-2— Annualized Adverse Effects 

 [Price level; period of analysis; applicable discount rate] 



Interest on investment 



Amortization of investment . 



Alternatives 



100 



