In evaluating the social cost of a project, double counting can become a serious
issue.

Question

In evaluating the social cost of a project, double counting can become a serious
 issue.

Quizplus · Accepted Answer

Double counting occurs when the same impact is counted more than once in the assessment of the social cost of a project, leading to an overestimation of the cost. This can lead to incorrect decision-making and resource allocation. Therefore, double counting is a serious issue that needs to be avoided in cost-benefit analysis or any other evaluation of the social cost of a project.

In Evaluating the Social Cost of a Project, Double Counting