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The
conceptual development of the method took place during the 1950’s and early
1960’s. Lichfield highlighted the contrast between private costs and benefits,
which are accounted for in market transactions and social ones that are not. He
adopted SCBA for two main reasons- First as the cost benefit analysis clearly
indicates the net benefits and costs associated with the projects and is easily
understandable to a layman also. Secondly, due to importance of equity
considerations in urban and regional planning. As in SCBA the incidence of
costs and benefits on groups affected cannot be calculated. The PBS allows the
analyst to set down the items of costs and benefits against each group who will
experience the consequences of the project/ policy and to calculate the
ultimate incidence of gains and losses on groups within the community. So, we
can see that PBSA is a form of impact analysis and a method for analyzing and
displaying the repercussions of the subject plan or project.

Table
2.3 Planning Balance Sheet Analysis

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Plan
A

Plan
B

 

Benefits

Costs

Benefits

Costs

Producers

Capital

Annual

Capital

Annual

Capital

Annual

Capital

Annual

X

 

 

200

 

 

 

150

 

Y

 

 

100

 

 

 

100

 

Z

 

100

 

50

 

80

 

40

Consumers

 

 

 

 

 

 

 

 

X1

20

 

50

 

80

 

100

 

Y1

 

50

 

10

 

40

 

30

Z1

 

50

 

10

 

40

 

30

Source: PPT on Plan Evaluation Process-I EM
4103: Urban Planning II, Slide no.13

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